New Zealand PM-elect agrees coalition deal

WELLINGTON - New Zealand prime minister-elect John Key said yesterday he had won enough support to form a new government by mid…

WELLINGTON - New Zealand prime minister-elect John Key said yesterday he had won enough support to form a new government by mid-November.

Mr Key unseated long-serving centre-left prime minister Helen Clark in elections on Saturday, amid concerns over a recession exacerbated by the global financial meltdown. But his National Party won only 59 seats, leaving it short of the number needed to form a government.

Mr Key said the right-wing Act Party had agreed to join a coalition in exchange for two non-cabinet posts. He added another seat after meeting the centrist United Future's sole MP, Peter Dunne.

"There will be a National-led government," Mr Key said, adding that the deal with the Act Party would not affect his determination to govern from the centre.

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Mr Key is hoping to fast-track the handover of power so that he can attend the upcoming Asia-Pacific Economic Co-operation summit in Peru. - (AP)