Sticking points in National's tax plan seem be causing friction in Government negotiations.

New Zealand First's Shane Jones told media today his party's working out some 'jagged edges'.

NewstalkZB understands they involve how National will pay for tax cuts.

ZB political editor Jason Walls says two issues are lifting the foreign buyers ban and dipping into the Climate Emergency Response Fund.

He says New Zealand First aren't happy for that money to be used on tax cuts- and would rather it go into making regions more resilient to climate change.

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