Talks on new government getting underway

Helen Clark, seen here in Auckland yesterday, is striving to form a new government. Phil Walter / Getty Images

Minor party leaders were arriving in Wellington today for negotiations with Helen Clark aimed at securing a majority for a third-term Labour-led government.

Having four parties to work with, she needs at least two of them to hold a majority of 62 votes in the new 122-member Parliament, and is keeping all of her options open.

Helen Clark indicated yesterday she intends running a minority government, as she did before the election. She might not have any coalition partners other than Progressive Party leader Jim Anderton.

Peter Dunne's United Future party has only three seats but he is confident they could be the seats that count when it comes to forming a government.

United Future received only a minuscule 2.7 per cent but that, combined with Mr Dunne's Ohariu-Belmont seat, gives it three MPs.

That is five less than they had in the last Parliament, when they supported Labour on crucial votes, but the closeness of the two big parties means United Future's support is highly sought after.

"We'll be playing an effective role, we've done far better than some other parties in this election and it's clear now that we're a player for the future," Mr Dunne said.

"What our role will be will become clear over the next few days. If the three seats are the three seats that count, we'll have influence."

With Labour holding 50 seats against National's 49, Helen Clark holds pole position in post-election talks. National's leader Don Brash is also working the phones in his own bid to form a government, but the odds are stacked against him.

The Greens are a Labour ally, NZ First and United Future are committed to first talking to the party with the most seats, and the Maori Party has a serious problem with National's policy to abolish the Maori seats in Parliament.

Helen Clark has to strike a deal with the minor parties so they will back her new government on confidence votes -- the key votes that have to be won for a government to stay in power.

She can negotiate her way through legislation on a case-by-case basis with them after that. It would be difficult, but she did it that way with several big bills in the last Parliament.

Helen Clark was meeting her ministers this morning and is then due to meet separately with Dr Sharples and Greens co-leader Jeanette Fitzsimons.

None of the party leaders expect any substantial agreements to emerge until the special votes and final results have been declared on October 1.

- NZPA