It appears the Maori Party is going to push for an increase in welfare benefits as part of its deal to back an emissions trading scheme (ETS).
Maori Party co-leader Pita Sharples appeared to take National by surprise yesterday when he revealed that a benefit boost was on the negotiating table as the two parties horse trade over an ETS.
On Monday the two parties announced they had agreed to support legislation amending the current ETS to reduce the impact on households and provide more subsidies for polluting businesses.
The Maori Party gained greater subsidies in sectors iwi have a strong interest in -- such as fisheries
One of the other key parts of the agreement was an extension to subsidies for home insulation and energy efficiency for low income earners.
The Maori Party have only agreed to support any legislation to select committee and Dr Sharples indicated that talks would be ongoing.
Dr Sharples said he was still pushing for more than subsidised insulation.
"The other one was an increase in the benefit just over this period to allow people who are on benefits to cope with new expenses," Dr Sharples said.
"We're still negotiating that one but we basically got heard at least that there should be a slight increase in the benefit for that period."
Dr Sharples' spokesman said later the discussion on how to minimise the impact of the ETS on low income families.
"It is Maori Party policy to increase core benefit levels, and the idea was raised. The details of any agreements are yet to be worked through," the spokesman said.
The discussion of a benefit rise seemed to take senior National ministers by surprise and they referred journalists to Climate Change Minister Nick Smith.
Finance Minister Bill English said there would be a natural increase in benefits as they were inflation indexed.
Dr Smith said the focus of the talks was around extending assistance with insulation and energy efficiency.
He did not want to comment on the Maori Party's push for a benefit increase, and also warned that if you took away the price impact of an ETS then it would not lead to less pollution.
The deal means if the Government retains the Maori Party's support it has a slender majority of 63 votes to advance its scheme and doesn't need Labour or the other minor parties.
Labour quit talks on the ETS after the deal was announced, saying it had been betrayed in the negotiations.
Both Labour and National had expressed the desire for a grand coalition on the policy to give it long term political stability
Prime Minister John Key said Labour did not have to pull out of talks and disputed Labour leader Phil Goff's claim National had reneged on negotiations.
Papers released showed that the two parties had been edging toward a compromise and further talks had been scheduled for yesterday.
Those conducting the negotiations -- Dr Smith and his Labour shadow spokesman Charles Chauvel -- blamed each other for the break down in talks.
Mr Chauvel provided papers showing Labour was still expecting talks on details of the ETS just hours before a deal with the Maori Party was announced.
From exchanges in Parliament it was clear that both sides, and in particular Labour, thought they were close to agreement to an ETS that may have withstood election cycles.
Mr Goff said that possibility was now unachievable.
