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.