NZ First weighs choice of partner

NZ First weighs choice of partner

WELLINGTON (Reuter): Politicians said yesterday they hoped to announce a government within two days as the nationalist New Zealand First party met to choose its coalition partner.

NZ First leader Winston Peters, caretaker Prime Minister Jim Bolger and Labour leader Helen Clark all said they hoped for a deal by Tuesday, ending eight weeks of deadlock since an inconclusive general election.

Peters, who holds the balance of power, was closeted with his party's MPs to discuss the choice of partner between Bolger's conservative National Party and Labour.

Bolger said after meeting Peters he expected one more session of negotiations between National and NZ First. "I would say we are 98 percent through policy issues now," he said.

In the new 120-member parliament, National has 44 seats, Labour 37 and NZ First 17. A Labour-NZ First coalition would need support from the left-wing Alliance, with 13, to achieve a majority.

The hung parliament stemmed from New Zealand's first election under proportional representation, which many hoped would lead to more open, accountable government. Instead, it has given rise to two months of political deadlock and intense secrecy.

"The one thing that can be said with absolute certainty, even before the nature of the governing coalition is revealed, is that there will be enormous public disillusionment as a result of the machinations that have taken place behind closed doors over the past eight weeks," the Evening Post newspaper said in an editorial.

Richard Prebble, leader of the radical free-market Act New Zealand, which has eight seats, said Peters would be the dominant force, whatever his choice of partner.

"Whatever we're going to have is a Winston Peters government, and Lord help all of us," he said.

NZ First is seen as closer to Labour on social policy and Maori issues, but newspapers speculate that the conservative National Party, in power since 1990, has offered major concessions to remain in office.