New Zealand First leader Winston Peters told Prime Minister Helen Clark yesterday that his party would "act to provide stability" in her attempts to form a Government.
He also restated his position that the party with the most seats was entitled to form a Government - "in the first instance". NZ First has said it will not go into coalition.
Yesterday's statements mean it will not prevent Labour from trying to form a Government with the Greens, United Future, Jim Anderton's Progressives and the Maori Party, assuming the provisional results stand.
Mr Peters requested secrecy for his meeting with Helen Clark at Premier House, a venue chosen to avoid news media at Parliament.
Earlier in the day, Mr Peters - who blames the news media for his party's drop from 13 to seven MPs - angrily ordered reporters from his Bowen House offices.
In contrast, cameras and questions were welcomed after National leader Don Brash met Maori Party co-leader Tariana Turia, party president Professor Whatarangi Winiata and adviser Ken Mair for more than an hour.
Chief of staff Graham Harding accompanied Mr Peters to the meeting with the Prime Minister. Helen Clark was accompanied by deputy leader Michael Cullen and her chief of staff, Heather Simpson.
Mr Peters, in a statement issued jointly with Helen Clark, said his party's position was that "the party with the most seats is in the first instance entitled to form a Government and New Zealand First will act to provide stability".
But he is refusing to answer questions and so it is not clear if his party would then deal with the second-biggest party if Labour failed to form a Government or if his party would still "provide stability" if Green MPs were given key Cabinet posts.
However, if NZ First's seven MPs agree to abstain on confidence and supply - its preferred position - then Labour and the Progressives (with 51) could form a Government with the Greens (6) and either United Future (3) or the Maori Party (4).
Helen Clark has suggested her preference is for no formal coalitions but to have as many parties as possible offering support on confidence and supply. But it is believed that thought is being given to offering United Future leader Peter Dunne a ministerial post outside the Cabinet to secure his team's three votes.
National (49) would be able to govern if it won the support of Act (2), United Future (3) and the Maori Party (4) and if NZ First abstained.
Meanwhile, Mrs Turia's delegation met Dr Brash for what she described as a "meet and greet".
National Party president Judy Kirk was there, as was National list MP Georgina te Heuheu and deputy leader Gerry Brownlee.
Dr Brash emphasised that it was simply a cordial meeting over a cup of tea, not negotiations.
Dr Brash also dropped in on Act leader Rodney Hide in his Bowen House offices, which he now shares with just one other MP, Heather Roy.
Mr Peters has not returned the phone call Dr Brash asked of him.
I won't stand in the way, says Peters
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