11.45am
The Green Party today said it knew last week it could not support the Government on confidence and supply because of Labour's "bottom line" on genetic engineering.
The party has denied it was shut out by Labour in talks over support for the Government as it became evident early on that
United Future was the more likely partner.
Green Party co-leader Rod Donald and Jeanette Fitzsimons today said it had become clear in their second meeting with Prime Minister Helen Clark that Labour had made the lifting of the moratorium on the commercial release of GE organisms its "bottom line".
The Greens have said they would not support any Government that allowed the GE moratorium to expire in October next year.
After more talks with Labour yesterday, the Greens today confirmed in a move widely expected, that they had decided not to enter into a confidence and supply agreement with Labour.
The party had agreed with Labour it could announce its position this morning, Ms Fitzsimons said.
United Future is expected to sign a three-year agreement to provide support on crucial confidence and money supply votes in return for being kept in the loop on policy and legislation.
Miss Clark and United Future leader Peter Dunne were to meet again today, with an announcement possible later.
Labour and Jim Anderton's Progressive Coalition have 54 seats and Miss Clark has been holding talks with United Future, which has nine, and the Greens, which has eight seats, to gain the support she needs to ensure her minority coalition government can survive in the 120-member Parliament.
Mr Donald said the Green Party had chosen to "preserve and protest its independence" because of Labour's "bottom line" on the GE moratorium.
This had been its position since its second meeting with Miss Clark last week.
"As soon as they made GE their bottom line there was nowhere for us to move," Miss Fitzsimons said.
Mr Donald also said Labour had not offered any policy concessions in return for the Greens' support.
However, the co-leaders said there was "no breakdown" in relations between the two parties and discussions were still being held on how common policy could be advanced.
Miss Clark is understood to be meeting senior cabinet ministers this morning to brief them on the proposed coalition agreement with the Progressive Coalition and support agreement with United Future.
The meeting was expected to run until early afternoon, followed by an announcement on the deals later today.
Progressive Coalition leader Jim Anderton said he would be meeting with Miss Clark at midday to discuss the talks and the subsequent formation of the government.
He would not be commenting until after the prime minister had made any formal announcement.
Mr Anderton is currently deputy prime minister. While he is not likely to hold that position in the new administration, he is highly likely to hold on to a cabinet position.
- NZPA
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11.45am
The Green Party today said it knew last week it could not support the Government on confidence and supply because of Labour's "bottom line" on genetic engineering.
The party has denied it was shut out by Labour in talks over support for the Government as it became evident early on that
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