Ardern can request Mallard to delay sitting for no longer than a month, meaning the brinksmanship of the Government and Opposition can only last so long.
But there is limited appetite for Auckland MPs to come to Wellington for the sitting of Parliament, especially as the pandemic is still present in the city.
Parliament's business committee met on Friday evening to decide whether the House should return and in what form.
It comes after the decision today to move all of New Zealand south of Auckland down to level 3 from next Tuesday night.
Last Friday, a similar meeting was held but parties walked away without agreeing on what to do. Labour wanted to delay the House's return, while Act and National wanted MPs to come back in some form.
The proposal up for discussion is a sort of digital Question Time that would make it easier for MPs from the Opposition to question ministers.
National leader Judith Collins was not happy with the idea and wants MPs to meet in person.
"Let's see what happens out of the business committee but our view is that needs to happen, we need to have a physical sitting of Parliament," Collins said.
Collins wanted to have Parliament return as well as the Epidemic Response Committee, which she would chair.
"It is very important that we accept that Parliament is an essential service," Collins said.
National's shadow leader of the House Chris Bishop said that if Ardern could hold press conferences each day during the pandemic, then Parliament could meet.
"But if the Beehive theatrette can be full every day for a press conference, then Parliament can meet in person," Bishop said.
He said that Parliament had met before under level 3, using social distancing to reduce the number of MPs in the chamber.
Mallard said Parliament would need to return soon to pass important spending legislation.
"By approximately the end of September, either an imprest supply bill or the appropriation bill [the Budget] has to pass," Mallard said.
Mallard was disappointed the digital Parliament idea was blocked.
"We had a very good proposal that was put to the committee and it was blocked," he said.
Leader of the House Chris Hipkins said it was "extremely disappointing National and Act do not consider that sending MPs to Wellington is a safety issue at level 3/level 4 in a Delta environment".
"Restricted interregional movement is designed to stop the spread of the virus and National and Act MPs will now likely travel to Wellington, including from Auckland.
"Labour-MPs based outside Wellington will not travel," he said.
Standing orders require the debate on the main part of the Budget to be finished four months after it was delivered. The Budget was delivered on May 20, giving Parliament until September 20 to pass it.
Instead of Question Time returning this week, ministers have been quizzed in Zoom select committees.
These have been unpopular with National and Act, who are unhappy that Labour MPs chair the committees and have a large degree of control over them.
However, those chairs have given the majority of questions and speaking time to the Opposition.
The meeting begins at 5.30pm. The meeting could clash with a National Party caucus meeting, currently scheduled for 6pm.
