Trans-Tasman discussions to resume

Australian Prime Minister Julia Gillard and Independent MPs Rob Oakeshott (top) and Tony Windsor. Photos / AP, Getty Images

Prime Minister John Key says bilateral meetings with Australia are likely to continue from early next year following the Labor Party's narrow election win.

Led by Julia Gillard, the party holds 76 seats in Parliament against 74 held by Tony Abbott's conservative coalition after two of three independents decided to go with Labor yesterday.

Mr Key said he had contacted Ms Gillard to offer congratulations and assurances.

"I congratulated her on her result and assured her that we had made minority government work effectively in New Zealand, and I'm sure she can do the same in Australia."

Mr Key said he expected trans-Tasman discussions between the countries to pick up again in February.

"Not withstanding that, we will probably see each other at other functions later in the year - Apec of course, and the East Asian summit."

Mr Key yesterday said National's commiserations went to Mr Abbott.

"As a politician I know what it's like to be in a tough fight and sometimes it doesn't go your way.

"This is the tightest of margins really, so you always feel a certain degree of sympathy for the person who loses out."

- NZPA