NZ Greens stay outside government

Miss Clark is prepared to form a minority government

New Zealand Prime Minister Helen Clark has said neither the Green Party nor United Future will be a formal part of her administration.

But she is continuing talks with smaller parties in a bid to cement long-term support for the minority government she will form following the weekend general election.

The Progressive Coalition will add its two seats to the 52 won by Miss Clark's Labour Party in the 120-member parliament.

The National Party has kept Bill English as leader despite their poll rout

Both the Greens - who won eight seats - and the United Future party with nine are being wooed by Miss Clark and both are demanding input into government policies in return for their support.

Key to the Green Party is a continuation of the moratorium on the commercial use of genetically modified organisms.

Miss Clark has said she does not plan to extend the ban which expires in October 2003 but the Greens have threatened to bring down any government which allows such organisms into New Zealand.

The Green Party says it also wants backing for some of their core policies, including:

• Buying back the nation's rail network from private ownership

• Decriminalising cannabis

• Opposing free trade agreements with developed nations

• Fostering trade deals with developing nations

The leader of United Future, Peter Dunne, said he wants his party to be "in the loop".

Opposition woes

Meanwhile, New Zealand's main opposition has launched an investigation into the rout it suffered at the election.

The centre-right National Party lost nearly a third of their seats after a campaign derided both by analysts and from within the party as flawed and ineffectual.

I have had nothing but support from the party and MPs

National Party leader Bill English

The party which dominated New Zealand politics for decades after World War II now has just 27 parliamentary seats.

But National MPs kept leader Bill English and his deputy after a meeting on Tuesday, instead blaming the party president for their election woes.

Mr English said: "I have had nothing but support from the party and MPs."