KEY POINTS:
The Act Party leadership says the issue of Sir Roger Douglas having a role in the new government is not dead, despite National leader John Key ruling out the prospect of giving the economic reformer a ministerial post.
The Act Party will meet National today to begin hammering out the details of their governing arrangement.
Before the election, Mr Key unequivocally ruled Sir Roger out of his ministerial line-up because of his right-wing economic ideas.
However, yesterday Act leader Rodney Hide and its president Garry Mallett said a role for Sir Roger would form part of negotiations, although neither would be drawn on what type of role they wanted.
Mr Hide would not be drawn on details of what he expected in return for its support.
However, he said it was logical to assume the areas it campaigned on - law and order, cutting government spending and getting rid of the Emissions Trading Scheme - would feature prominently
"That's what people voted for, so we have to deliver on it."
He responded to critics' claims that Act would push the country down a radical path, saying he had no intention of being the tail that wagged the dog or "jumping up and down about particular policies".
"The most important thing is to have a secure, stable government that provides security for New Zealand, and second, to have a good relationship between National and Act, as well as other parties.
"I thought Labour would have learned we do have a serious economic crisis ahead and it's time for cool heads to prevail to deal with it - not taking pot shots at others."
There are differences in their stance on the emissions trading scheme and Act's privatisation and cuts to public spending policies are harsher than those of National.
The parties are closer on law and order. Act wants significantly more money spent on law and order and campaigned on "three strikes and you're in for life" - under which repeat violent offenders will be jailed for 25 years to life if they reoffend a third time.
National's policy is to remove parole for repeat violent offenders.
Act's board was to meet last night to form its negotiating team, which was likely to include the president, Mr Hide and Heather Roy. Act polled 3.72 per cent of the party vote, increasing its MPs from two to five.
As well as Mr Hide and Heather Roy, Sir Roger Douglas, John Boscawen and the Sensible Sentencing Trust advocate David Garrett enter Parliament.
Mr Mallett said he was "quietly happy" about Act's result, which was higher than most polls indicated.
Mr Hide increased his majority in the Epsom electorate more than he expected.
The newly elected John Boscawen said he was interested in several areas, including education and infrastructure.
A strong opponent of the Electoral Finance Act, he said he would also be interested in joining any multi-party talks to reform the law.
David Garrett is likely to be used on law and order policy.
