United is the one says Anderton

By FRANCESCA MOLD and NZPA

Progressive Coalition leader Jim Anderton believes United Future is the party most likely to sign a three-year agreement to support the new Government.

Labour negotiators held separate talks about potential coalition arrangements with United Future leader Peter Dunne and Green Party representatives yesterday.

None of the parties would reveal what had been discussed, but they said further meetings were planned.

Mr Anderton has called journalists to his office in the past couple of days for briefings about his role in the new Government as he tries to lift his profile after being largely ignored in news cover of coalition talks.

He has been reminding reporters who have focused on the Greens and United Future that his party will have a formal coalition agreement with Labour.

A draft agreement had been written.

Mr Anderton said yesterday that he did not think United Future or the Greens could be part of a formal three-party coalition.

He did not see how the Greens could give the assurances Prime Minister Helen Clark needed because they had threatened to withdraw support if the Government lifted the genetic modification moratorium.

"I think the most likely outcome is a minority coalition between Labour and the Progressive Coalition supported almost certainly by Peter Dunne on a three-year basis," he said.

"The Greens have put themselves in a position where they are saying that close to halfway through the term of this Government they would not support it on confidence and supply.

"I know, as Minister of Economic Development, what negative vibes that puts out in terms of investment in New Zealand," he said.

"If people think we're unstable, that there's going to be some meltdown in 14 months, they're going to put their chequebooks away."

Mr Anderton does not have a direct role in the negotiations between Labour, the Greens and United Future, but he said Helen Clark updated him daily.

"We have an input into how things are moving," he said.

Mr Anderton, 64, said he had already decided to stand at the next election.

He also said he expected to keep his Economic Development portfolio in the new Cabinet.

But he accepted that he was likely to lose the Deputy Prime Minister's job to Labour deputy leader Michael Cullen.

"That's perfectly reasonable, given the outcome of the election," he said.

"We accept that. We've taken a hit because of the meltdown of the old Alliance and we have to rebuild."

The Labour caucus plans to hold an election on August 13 to determine who will be in the Cabinet.

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