12 Nov 2008

Government likely to be in place next week

8:10 am on 12 November 2008

The new Government looks set to be in place by next week, with the new Cabinet announced by Sunday.

Deals to form the next government have all but been finalised after only two days of discussions, with just a few policy details to be ironed out.

The leaders of ACT, United Future and the Maori Party have been meeting separately with National to work through what their roles may be in the new Government.

National leader John Key says he expects to be able to announce his Cabinet by Sunday, and be sworn in as Prime Minister before flying to the APEC meeting in Peru on Thursday.

However, a hurdle to be overcome in the talks could be the ACT Party's policy of scrapping the Emissions Trading Scheme.

ACT leader Rodney Hide concedes it is an issue, but there is enthusiasm to work it though.

Mr Hide does not buy the argument that taxpayers will face the cost of the Kyoto Protocol without an emissions trading scheme.

Mr Key says though the scheme is being discussed with ACT, it is not stopping progress in talks.

United Future leader Peter Dunne says support for amending the scheme has come up during his discussions with Mr Key also.

National is also in talks with the Maori Party about a potential support agreement for the Government.

If ACT refuses to support any kind of emissions trading scheme, National has the option of turning to the Maori Party to give it the votes it would need to pass amending legislation.

National has pledged to have an amended scheme in place nine months after it takes office, and the clock is ticking.