Knuckling down over GM

By VERNON SMALL deputy political editor

Talks to determine the shape of a Labour-led Government begin in earnest today amid efforts to resolve the stand-off between Labour and the Greens over the GM moratorium.

Government sources yesterday suggested a "political review" of the moratorium before it expires in October next year could satisfy Labour, United Future and the Greens.

But United leader Peter Dunne and Prime Minister Helen Clark dismissed media speculation of joint pressure by the Greens and United Future to extend the moratorium.

The Greens have said they will vote against any government that lifts the moratorium on the release of genetically modified organisms.

United Future wants a review to ensure the proper regulatory measures are in place before the moratorium is lifted.

Labour needs the backing of either the Greens or United Future on key confidence and supply votes.

Labour negotiators will meet United Future tomorrow.

The parties to the talks will then take a long weekend to relax after the election campaign. Helen Clark, who will use the break to go skiing, has said arrangements for a Labour-led government could be in place in two weeks.

Speaking after the Greens' first post-election caucus meeting, co-leader Jeanette Fitzsimons said it was clear Labour's strategy was to play the two potential support parties off against each other.

"That was always going to be the strategy. I could see that from months ago. Except that months ago I thought it was going to be New Zealand First rather than United that she would play us off against," she said.

"Obviously, we're very aware of the risks of her playing off two small parties."

United Future had given Helen Clark "a more acceptable option than NZ First, but still I think less acceptable than us".

Labour sources said there would be unease among Labour's women, gay and Maori members if the party turned to Peter Dunne's United party, which includes five MPs seen as moral conservatives.

But United Future was seen as a more pragmatic partner that would make the business of governing more straightforward.

"There was considerable frustration at the Greens not granting urgency to even allow bills to be introduced in the last term," one Labour MP said.

But it was a big step to assume United Future was a better option, because it might not have as much in common with Labour's policy agenda as the Greens.

The Greens remain confident they have the inside running with Labour. "Voters are expecting Helen Clark to lead a centre-left government, not a centre-right one," co-leader Rod Donald said.

"We are going to do our best to make sure that's possible."

He said "parallel negotiations" were difficult but the current situation differed from 1996, when NZ First negotiated with Labour and National and took nine weeks to form a Government led by National.

"It is clear that Labour will be the Government."

The Greens and United have said all options, including a formal coalition, an agreement to support Labour on confidence and supply or remaining on the cross-benches, are on the table.

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