POLITICAL leaders in New Zealand started talks yesterday in what is expected to be a drawn out process of forming a government after the general election left a hung parliament.
The country's first proportional representation ballot on Saturday saw the Prime Minister, Mr Jim Bolger, of the ruling National Party, and the opposition Labour Party leader, Ms Helen Clark, both claim they can form a government before the next sitting of parliament on December 13th.
But a right wing leader, Mr Winston Peters of the New Zealand First (NZF) Party, will hold the balance of power.
When all ordinary votes were counted early yesterday, the National Party had 44 seats in the 120 seat parliament. Labour had 37, NZF 17, the left wing Alliance 13, the right wing Act Party eight and United one.
A centre right National Act United coalition would have 53 seats while a centre left coalition of Labour and Alliance would have 50.
Mr Peters, a former minister who quit Mr Bolger's party three years ago, accusing it of corruption, was not saying yesterday who he was backing. But observers believe NZF will finally back Ms Clark's bid to become the country's first woman prime minister.
NZF took a strong anti foreign investment, anti Asian migration line in the election but tended to preach an economic message closer to Mr Bolger's. However, the party picked up all the five special Maori electorate seats which for most of this century have been held by Labour.
Mr Peters was yesterday planning his strategy ahead of negotiations. He appealed for patience, "cool heads and wise leadership".