Greens' shutout would not disappoint, Donald says

9.30am

Green Party co-leader Rod Donald is putting on a brave face as Labour moves towards signing a widely anticipated deal with United Future.

Prime Minister Helen Clark flew into Wellington this morning for continued talks on setting up a new Government.

Her trip came amid continuing speculation that a deal with United Future would be signed within 48 hours.

A spokesman for Miss Clark told NZPA he was unaware of any such timeline, while Mr Donald said it was "speculation".

A Labour deal with United Future could leave the Greens in a weaker position in the new Government than they had anticipated.

"If that is the outcome, I will not be disappointed," Mr Donald told National Radio.

"We have some principles that we stand by, we are also trying to be as pragmatic and reasonable and -- dare I say it -- common sense as possible, but we have yet to announce the outcome of our negotiations."

Miss Clark is widely expected to announce within the next two or three days she has the support she needs to run a minority government for a three-year term.

It has been clear since late last week that Labour has been leaning toward United Future, which would support it for a whole term.

With one more seat than the Greens, United Future had the added advantage of the numbers to give Labour a majority in the House.

Miss Clark is looking for guaranteed backing on confidence and supply votes so that her minority coalition government can survive in the 120-member Parliament.

Labour and Jim Anderton's Progressive Coalition together have 54 seats and United Future, which has nine, is expected to give Miss Clark the assurance she wants.

United Future will not be a full coalition partner, but
Mr Dunne is expected to be given a significant role in the preparation of legislation, and to get the Government's co-operation in promoting at least some of his party's core policies.

Mr Donald said whatever the outcome of talks -- and he would not discuss details -- the Greens would work with Labour.

"If you're looking at legislation then obviously we will be working very closely with Labour," he said.

"If you're looking at confidence and supply, you'll have to wait and see what the outcomes of the negotiations are."

Mr Dunne and Mr Donald briefed their respective caucuses on talks yesterday as officials worked through details of proposals that are on the table.

The Greens say they will not support the Government after October next year, unless the moratorium on genetic engineering experiments is extended beyond that date.

If a deal with United Future is nailed down, Miss Clark will not need the Greens but she could agree to give them a consultative role in the legislative process because she might need them to support bills in Parliament.

When her government's future is assured, Miss Clark can set about forming a cabinet -- no major changes are expected -- and getting ready for the opening of Parliament, which is being planned for August 20.

Miss Clark was due to meet the Greens later this morning, then see United Future mid-afternoon, a spokesman told NZPA.

- NZPA

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