Stability key to government formation says PM

Caretaker Prime Minister Helen Clark -- preparing to get into talks to form a government -- was this morning focusing on getting political stability.

Following yesterday's confirmation that Labour was in the best position to form a government, Helen Clark said she would talk to leaders of the Greens, NZ First, United Future, the Maori Party and the Progressives after today's Cabinet meeting.

"I've said from the beginning I'm looking for an inclusive government as possible and I have to put the premium on stability because I think it's no small part due to the political stability we've had over the past six years that the economy has been able to do much better," she told National Radio.

The PM already has Progressive Party leader Jim Anderton on board as a coalition partner, giving her 51 seats.

But to form a government in the 121-member Parliament she will need help from the smaller parties.

United Future and NZ First have both expressed discomfort with the idea of Green Party members being in a coalition.

Asked if stability may mean excluding the Greens, the Labour leader said the Greens had a record of reliability -- in Labour's first term they gave confidence and supply and were supportive in the last term.

"We've also worked with (United Future leader) Peter Dunne for three years, we've worked with Jim Anderton for six years and we've worked on issues with NZ First -- that's why I'm saying that we should take...an inclusive approach.

"Just what the shape of the governmental and support arrangements will be I can't say at this time."

The focus would be creating "durable and stable" arrangements.

"The Greens have made it very clear they want to support a Labour-led government so we just have to work through what are the different permutations available to us."

Helen Clark said different parties' agendas would reflect what support they offered.

"In the past two terms the parties that have given Labour confidence and supply also had the opportunity to advance proposals for the budget and that's been a very inclusive process."

Helen Clark said the media was too focused on formal coalitions.

"In reality there are a range of support arrangements that are available and we are going to have to work for the mix that gives us the most stable government, the most durable government."

She said she had always intended to have a shake-up of ministerial roles after the election and hit back at suggestions her caucus was stale.

Labour was re-elected for a third term with its vote almost the same as the last election, which prompted the PM to say the team was "vigorous".

Helen Clark said that she hoped to have the shape of the government sorted this week.

"This week will be the week where we really try to nail down arrangements," she TV1's Breakfast programme

"I wouldn't expect to be having things sewn up by the weekend."

Meanwhile, National Leader Don Brash said the Prime Minister was in a very "uncomfortable position" and he doubted whatever government should formed would last three years.

He also said it was unclear if she would be able to form a government.

"While she's got first dibs at doing that I stand ready to form a government if she can't," Dr Brash told National Radio.

"It won't easy and it won't be easy to continue with a stable government -- she will depend on the Greens, she will depend on NZ First and NZ First don't want to work with the Greens, understandably so and she might have to rely on the Maori Party as well."

Dr Brash said he would wait to see how portfolios were allocated to before announcing his shadow cabinet.

Both party leaders have said they have no plans to step down as leaders.

- NZPA