Prime Minister John Key says his Ministers are looking forward to working with the Green Party on a range of policy initiatives over the remainder of this parliamentary term.

Mr Key today signed a Memorandum of Understanding between the Green Party and National Party with Green Party co-leaders Jeanette Fitzsimons and Russel Norman.

"There are a number of important policy areas where National and the Greens have common ground," says Mr Key.

"In the case of home insulation, energy efficiency and the regulation of natural health products, joint discussions are already underway.

"I envisage that over coming months National and the Greens will agree to work on further policy areas."

Mr Key welcomed the signing of the Memorandum of Understanding between the two parties (see attached document).

"I note that this agreement is not a confidence and supply arrangement, but it does provide a sound basis for the two parties to work together on important policy issues in a co-operative way, without compromising the independence of either party.

"Under our MMP electoral system, it is important for parties to build relationships with other parties across the House in pursuit of shared policy objectives.

"This agreement reflects that imperative.

"While National and the Greens do have differences in a number of important respects, that should not prevent us working together to progress policy initiatives where we share similar perspectives."

Mr Key says he expects the relationship between the two parties will operate in an open and transparent manner. Where future policy issues are added to the work programme, these will be announced publicly.

Related Document:MOU National Party and Green Party (pdf, 47 Kb)