[asia-apec 1570] NZ Herald -

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New Zealand Herald
14/09/00 - Quiet chat smooths path to trade pact 
						By VERNON SMALL

Prime Minister Helen Clark and Opposition leader Jenny Shipley have found a face-saving way for National to back the free trade agreement with Singapore.

The leaders met in the Prime Minister's office yesterday to nut out the process, which would leave untouched a Treaty of Waitangi clause National had insisted should be changed.

But the new-found mood of reconciliation only went so far.

Reporters and photographers were banned from Helen Clark's ninth-floor Beehive suite to prevent any shots of the two together.

There was no joint press conference or statement after the meeting, and Helen Clark would not meet reporters until her media staff had relayed to her details of Mrs Shipley's press conference.

After the 20-minute meeting, attended by Finance Minister Michael Cullen, Trade Minister Jim Sutton, former National Trade Minister Lockwood Smith and National's trade spokesman, John Luxton, Helen Clark said she hoped that a "win-win solution" could be negotiated.

"I have no doubt we can achieve a wording that will allow National and the Alliance to express their views," she said.

The solution would see Parliament vote to support a free trade pact with Singapore, which National could agree to, without getting into details.

"What is important is that we know before signing that there is very substantial support in the Parliament for the overall objective of such an agreement with Singapore," Helen Clark said.

The Alliance and the Greens have said they will vote against the accord, meaning National's backing is crucial if Labour is to get a clear majority.

Once broad approval was achieved, Parliament could then vote on the key Waitangi Treaty clause, which reserves the right to give Maori preferential treatment.

The Greens and the Alliance are likely to support Labour's wording of that clause.

Helen Clark said Singapore could be totally confident that the deal would go ahead.

The treaty clause, which was similar to clauses National proposed when it was in Government, would be a precedent for future bilateral free-trade deals. "However, I would think that New Zealand Governments in the future, of whatever shade, would be looking to enter a general reservation into multi-lateral trade treaties ... giving preferential treatment [to Maori]."

Mrs Shipley said she was optimistic of a deal that would allow National to support free trade with Singapore.

But there would need to be an unequivocal statement separating National from the treaty clause, which allows more favourable treatment for Maori. 

"We do not support that and will seek to have it removed in due course."

 She said business leaders and key opinion leaders, whom she would not name, had expressed concern about the treaty clause.

The Herald yesterday reported that former National Prime Minister Jim Bolger, now Ambassador to the US, and former Finance Minister Sir William Birch, who is advising the Government on free trade, were understood to be putting pressure on National and Mrs Shipley to find a way to back the pact.

But she said that neither man had phoned her to urge such action.

The compromise arrangement will be put to National's caucus meeting on Tuesday.

But it has already incensed National's closest political ally, the Act party. Commerce spokesman Stephen Franks said New Zealand could pay a high price for the "race privilege clause," which would provide the "grievance industry" with a new litigation weapon.

"National's behaviour shows exactly how we drifted into the current swamp. Without any sense of principle or integrity they are now negotiating a tawdry deal.

"This is playing a corrupt political game with our constitutional future. 

"National is saying they will support racial privilege as long as you don't ask us to be seen to vote on it."
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