PM aims to have new Government stitched up in week

Prime Minister Helen Clark at a press conference in Nelson, where she was accompanying Prince Andrew. Picture / Tim Skinner

Prime Minister Helen Clark will today begin the nitty-gritty of negotiations with other party leaders in the hope of going to the Governor-General next Monday with enough support to lead a third-term Labour government.

And if all goes without a hitch, a new Cabinet could be in place by the end of next week.

Helen Clark is refusing to set deadlines, but sources suggested the aim was to have a Government by next Monday.

That would also give the Maori Party time to conclude its consultation hui, due to end next Sunday.

Helen Clark is expected to meet the leadership of the Greens, the Maori Party, United Future and New Zealand First this week.

The final results announced on Saturday - Labour 50 seats, National 48, New Zealand First 7, Greens 6, Maori Party 4, United Future 3, Act 2 and Progressives 1 - strengthened her hand.

Not only did National lose one seat but the number required for a majority fell from 62 to 61 (the extra support for the Maori Party in the specials party vote reduced the "overhang" from two MPs to one, and the numbers in Parliament fell from 122 to 121).

Greens co-leaders Jeanette Fitzsimons and Rod Donald met at Parliament yesterday with their consultative party group of 10 to prepare for talks with Labour today.

The group drew up options to present to Labour, which are bound to include its preferred option of full coalition partner with Cabinet posts.

Others are likely to include coalition partnership but with ministerial posts outside the Cabinet; a confidence-and-supply agreement only; and a co-operation agreement only, which was what they had with Labour in the last term.

They could also include the option of the Greens abstaining on confidence and supply, not considered until now but which could be a last-resort option if the Greens got nothing from Labour and if it exercising it did not prevent Labour from forming a Government.

Jeanette Fitzsimons said last night she expected the talks would cover the processes of the relationship and policy issues "probably starting at a more general level and then zeroing in to more detail as we reach agreement on the big picture".

"That would be my guess but, hey, we make it up as we go along."

Asked if she would be willing to compromise on a position outside the Cabinet with United Future leader Peter Dunne also getting a post outside the Cabinet, she said all the options presented to Labour would be on the table.

One model under consideration is that of a Labour-Progressive coalition but with Greens and United Future sitting outside the Cabinet, and with New Zealand First and the Maori Party abstaining on confidence and supply.

That would give Labour 60 votes to National and Act's 50.

Progressive Party leader and sole MP Jim Anderton said yesterday he had already put a draft coalition agreement to Labour but did not expect it would be signed until it was clear whether any other party would be part of the coalition government.

He said he wanted the coalition presented in a "somewhat more visionary and ambitious" way in Labour's third term.

"There's this general impression that this coalition for its third term will be sitting around waiting to have its head cut off. Well, not on my watch and I doubt very much on Helen's watch either."

Mr Anderton has expressed interest in the education portfolio.