Winston Peters, leader of New Zealand First party, addresses media in Wellington, New Zealand, on Oct. 19, 2017. The New Zealand First party has decided to side with the Labor party to form the coalition government, NZ First party leader Winston Peters announced here Thursday. (Xinhua/Su Liang)
WELLINGTON, Oct. 19 (Xinhua) -- The New Zealand First party has decided to side with the Labor party to form the coalition government, NZ First party leader Winston Peters announced here Thursday.
The decision is about to see the shift of the government from New Zealand National party, which led a minority government for the past nine years, to Labor party.
Labor's policy focuses on cutting immigrants from the current 70,000 to 10,000 and banning the foreign ownership of existing houses.
As the ban may conflict with the Free Trade Agreement signed between New Zealand and other countries, Labor leader Jacinda Ardern clarifies that "there is some negotiation going to be required in order to fulfill our policy."
The New Zealand dollar felt downward pressure shortly before the announcement by the NZ First party which saw the NZ dollar lose half a cent against U.S. dollar "in the blink of the eye."
Peters told a media conference that he made the decision only 15 minutes before the briefing and Labor leader Jacinda Ardern learned the news through media live broadcast.
Ardern took the helm of the party in August when it almost hit the bottom of support. Amid a charm campaign and honeymoon period, the 37 female politician brought the party back to a high bench close to the National party.
"It's fairly remarkable performance given that just 10 or 12 weeks ago she was deputy leader of a failing opposition," Bill English, the outgoing prime minister and the leader of the National party, told the media after he concedes failure in the elections.
According to Ardern, the Labor will convene on Friday before a three-day long weekend to decide ministerial portfolios and hold a swearing-in ceremony next week.
The National won 56 seats of 120-seat parliament while the Labor and its ally the Green party secured 54 seats, leaving the NZ First party and its leader the kingmaker.
Peters, who was reluctant to work with the Green party in the cabinet, expressed clearly that he preferred to form a coalition government with one party only.
