New Zealand PM in talks to form new coalition government after election

New Zealand Prime Minister John Key began the first working day of his second term Monday in talks with coalition partners from his first three years in power. Key\'s National Party is entering the new parliament in a much stronger position than it did after the 2008 election, holding 60 of the 121 seats. However, former partners ACT, with just one seat, and the Maori Party, with three, both have fewer seats than the last parliament, while the third minor coalition party, United Future, retains its single seat. The National Party, which needs the support of minor parties for a majority, is negotiating supply and confidence agreements with the ACT and the United Future and possibly the Maori Party, Radio New Zealand reported Monday. Key met Monday afternoon with ACT Member of Parliament (MP) John Banks, United Future leader Peter Dunne and Maori Party co- leaders Tariana Turia and Pita Sharples. After his meeting, Banks said he had a discussion in broad terms about what he stood for and raised matters including limiting the role of government in small business and addressing economic sovereignty, said the Radio New Zealand report. Banks said he would be reporting back to his board and expected to meet Key again soon. The ACT had said it wanted progress on two pieces of legislation: one to put a cap on government spending, and the Regulatory Standards Bill, which it claims would reduce red tape for businesses. Following his meeting with Key, United Future leader Peter Dunne, who was Revenue Minister and Associate Minister of Health in the last Key government, said there was broad agreement on the party\'s conditions for supporting the new National-led government on confidence and supply. The Maori Party was keen to ensure a Maori social services program, Whanau Ora, continued to be funded by the government. Co-leader Pita Sharples said over the weekend that while the party opposed plans to partially privatize four state-owned energy companies and the sell-of of a large private shareholding in Air New Zealand, it was not a deal breaker. The party would conduct a series of meetings with its supporters before committing to any deal. The Fairfax news media Monday reported Sharples as saying state asset sales would be excluded from a supply and confidence agreement if one was signed. Earlier Key told Radio New Zealand that the arrangements in the last government worked well, with the parties bound by confidence and supply agreements and the requirements of their ministerial portfolios, but beyond that free to disagree with the government.