Smith likely to become next Speaker

Controversial National MP Lockwood Smith is a frontrunner to become Parliament's next Speaker in Prime Minister-elect John Key's new government.

The formation of a new administration is continuing apace, with a new Cabinet expected by Sunday and National's new ministers to be sworn in early next week.

The Press understands that Smith, the party's most senior MP, who got into trouble during the election campaign for saying that Asians had small hands and some Pacific Islanders did not know how to use a toilet, is likely to be the Speaker in the new Parliament.

Such a move would remove Smith from the day-to-day political fray and avoid any repeat of the loose-lipped comments he made on the campaign trail.

It would also provide him with a reward for his seniority and tap into his extensive knowledge of Parliament, although there may be questions about his ability to command the respect of the House as he is on the far Right of National's caucus.

Key last night declined to say whether he had approached Smith about the role.

It is also understood Key plans to relieve Judith Collins of the welfare portfolio and offer it to up-and-coming Waitakere MP and solo mother Paula Bennett.

Collins is likely to take the corrections and police portfolios, Simon Power justice, Anne Tolley education and Tony Ryall health.

National yesterday held its first caucus meeting since Saturday's election, with the party's 59 MPs cheering and clapping Key's arrival.

National's 10 new MPs appeared startled by the media spotlight, with several walking the wrong way down National's corridor and having to be ushered into the room.

Retiring National MPs Clem Simich and Katherine Rich received silver trays from the caucus for their service to the party.

Key said his talks with Maori Party co-leaders Pita Sharples and Tariana Turia were "very constructive" and that he would meet the pair again this week.

As tipped by The Press yesterday, Key offered the Maori Party a ministerial post in return for agreement to support National on confidence and supply, and Sharples and Turia will discuss this with their caucus and party membership.

Key said after the meeting that there were many synergies between National and the Maori Party, despite critics saying the two parties were too dissimilar to work together effectively.

"There are a lot of areas where we believe we can work very well together," he said.

"I have never accepted the historical argument that the Maori Party finds a more natural home with the Labour Party and could not work with the National Party."

Sharples said he and Turia would "happily" talk to party members. Asked whether he wanted a ministerial post, Sharples said: "It's not about what I would like, but clearly I want to look for some advantages for Maori."

Key again met ACT leader Rodney Hide and United Future leader Peter Dunne, and now has the numbers to go to Governor-General Anand Satyanand and ask him to swear in his government.

It is understood Key wants to wait to see whether he can command 70 votes in Parliament, including the Maori Party's five MPs, before approaching Satyanand.

The formation of the new government is being driven by Key's desire to attend next week's Asia-Pacific Economic Co-operation (Apec) meeting in Lima, Peru, a goal he appears very likely to achieve.

He will depart for Apec probably on Thursday next week, taking with him new Trade Minister Tim Grosser and Foreign Affairs Minister Murray McCully.