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Labour and its coalition partner the Progressives are in discussions about how to work closer during next year's election - negotiations which might eventually see the minor party merge with its cousin on the left.
Progressives deputy leader Matt Robson and Labour party president Mike Williams have met several times in recent weeks. Both said a merger now was not under discussion, but neither would rule out a merger in the future.
In politics anything could happen, Mr Robson said, "but that [a merger] is not what we're discussing at the moment".
Mr Williams said he had had informal discussions with Mr Robson on a range of subjects. He said an approach on any future merger was up to the Progressives.
"Personally no, I wouldn't be averse to the idea, but it depends on the party leaders as much as anyone else. We're totally relaxed."
The Progressives gained 26,441 party votes in the 2005 election - 1.16 per cent of the party vote, and ballots which could be vital if a future election saw a narrow gap between Labour and National. Both New Zealand First and United Future have said they would first talk to the party with the most votes if they held the balance of power.
Progressives leader Jim Anderton said the party had very friendly relations with Labour, but had no plans to be absorbed by the bigger party.
Mr Anderton, who intends to stand for his safe Wigram seat again in the next election, said he knew of Mr Robson's meetings with Mr Williams, and they took place with his blessing. The Progressives needed to talk with all other parties in an MMP environment, he said.
"It could be misconstrued as some kind of rapport that is deeper than what might be real. That's the risk you take. When you start talking to people, people put two and two together and make 64."
Matt Robson, a former Progressive MP and the party's deputy leader, was secretary of the Otara branch of the Labour Party from 1981-89. In the 2005 election the Progressives failed to secure enough votes for Robson, a former Corrections Minister, to retain his seat as a list MP.
Mr Robson said he planned to stand in an Auckland seat next election, with Botany being a strong possibility.
"We have a lot of support there as a party and I have a lot of support from a range of communities. Party members in that area have asked if I would consider that. But it's a little early because I haven't quite done the analysis on all the polling booths ... but a strong campaign there is a possibility."
Mr Williams said the two parties were looking at how they could work more closely during the election.