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The Maori Party are pushing for an increase in welfare benefits to help low income people deal with the extra costs of an emissions trading scheme (ETS).
Maori Party co-leader Pita Sharples appeared to take National by surprise on Tuesday 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.
One of the key parts of the agreement was an extension to subsidies for home insulation and energy efficiency for low income earners.
Sharples says he is still pushing for more.
"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," Sharples says.
"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."
Asked to clarify what he meant, Sharples said it was "just general talk at the moment" and he would not comment further beyond saying the Maori Party were seeking more.
The government is dealing with rising beneficiary numbers and years of budget deficits and any increase in benefits above and beyond inflation would have large budgetary implications.
Neither Prime Minister John Key nor Finance Minister Bill English were aware of talk about a benefit increase and referred journalists to Climate Change Minister Nick Smith.
English says there will be a natural increase in benefits as they are inflation indexed.
"There will be a natural flow through to benefit increases from any increases in power prices and fuel costs."
An increase in benefits has already been forecast due to the increase in costs, he says.
Smith says the impact on low income earners is a major concern of the Maori Party and the focus of the talks is around extending assistance with insulation and energy efficiency.
"We are going to have ongoing discussions with the Maori Party as to how we can try come up with further arrangements for low income earners with respect to the ETS."
Asked if that could mean an increase to benefits above and beyond inflation, Smith said there had been no discussion about this and he would not negotiate through the media.
"One of the things we do need to be mindful of is that the very purpose of an ETS is to try and provide a price signal. As you soften those price signals ... you remove some of the environmental benefit you are trying to achieve," Smith says.
"That is why we are being very focused in talking with the Maori Party about extensions to the home insulation scheme as the best mechanism to provide extra support for low income households."
