NZ Election: National to form Government

KEVIN NORQUAY

National will hold talks with UnitedFuture, ACT and the Maori Party in the next few days, as it looks to put together a new Government in the wake of tonight's election result.

A smiling John Key arrived at Sky City just before 11.30pm, and in his victory speech revealed he had already started talks about forming the next Government.

He told cheering party faithful he had talked to ACT leader Don Brash, UnitedFuture leader Peter Dunne and Maori Party co-leader Tariana Turia tonight, and would meet them again in the next few days.

The combination would give the Government 65 seats, which was a "good healthy working majority".

He told reporters he did not need the Maori Party on board, but felt having it would enable the Government to work for a wider range New Zealanders.

"I will continue to head a Government that serves the interests of all New Zealanders," he had said in his victory speech, in which he hailed the result as the best for National since the 1951 waterfront strike.

He said he would also talk to the Green Party, which tonight lifted its vote to an all-time high 13 seats.

He was generous when speaking of his opponent over the campaign, Labour leader Phil Goff.

"Tonight I spoke to Labour Leader Phil Goff  ... He is a hard working parliamentarian and he has always had New Zealand's best interests at heart."

He remained adamant that the furore over the "tea cup tapes" was not responsible for the revival of Winston Peters and NZ First, which stormed back into Parliament with eight seats based on preliminary results.

NZ First doing so well had not been a shock, he said.

"I'm not entirely surprised - at the end of the day he's taken votes from Labour."

Key made a joke of the tea party tapes as he left the stage after addressing party faithful.

"I'm about to head off for something just a little stronger than a cup of tea," he laughed.

CLOSE TO OUTRIGHT MAJORITY

For a time as the votes rolled in this evening National seemed set to govern alone, then the voting scales titled the other way, so Key will need to get by with a little help from his friends - ACT and United Future at least.

The final result, with all booths counted, gave National 60 seats, Labour 34, The Green Party 13, NZ First 8, Maori Party 3, while the Mana Party, UnitedFuture and ACT all won a seat each.

ACT leader Don Brash was the first leader to fall on the sword, tonight resigning his leadership.

Goff oversaw a bleak result, and vowed the fight would continue. He celebrated the few wins Labour managed - winning Te Tai Tonga, and West Coast-Tasman and bringing in new MPs - and bemoaned those who lost their seats.

"It was wasn't our time, but we are members of a great political party ... our time will come again, and we will be ready to take New Zealand forward at that time. We are a bit bloodied, but we're not defeated."

Goff would not discuss his future as leader, but appeared to be resigned to leaving the leadership of the party.

He said his wife Mary and children would like to see more of him.

He had made his decision about his future but would talk to his caucus first.

- © Fairfax NZ News