New Zealand's 19-month old centre-right government was in turmoil and its future in doubt yesterday after five ministers from the junior coalition party walked out of a crucial cabinet meeting.
"It is my intention to continue in minority government," the Prime Minister, Ms Jenny Shipley, said after a three-hour cabinet meeting failed to resolve differences between her conservative National Party and the Deputy Prime Minister and Treasurer, Mr Winston Peters, and his nationalist New Zealand First party.
National ministers want to sell the government's 66 per cent stake in the capital's airport, worth about NZ$100 million (£35 million). NZ First, which campaigned in the 1996 general election against asset sales, opposed the sale and was pressing for assurances that at least 51 per cent of the airport would remain in local hands.
National controls 44 seats in the 120-member single chamber parliament and NZ First has 16 seats. But Ms Shipley can rely on another 10 MPs to back her on key issues of confidence and supply.
Less than an hour before the cabinet meeting began the government easily survived a no-confidence motion in the House by 69 votes to 50.
The government will not face another confidence vote until the next money supply bill, due in February, but the left-wing opposition Labour Party leader, Ms Helen Clark, said the government was not functioning and should call an early election.
An election must be held before the end of November 1999.
Later, Mr Peters told a news conference he and his fellow NZ First ministers were still in the cabinet.