New Zealand Prime Minister John Key started negotiations with potential coalition partners Monday after his conservative National Party was returned to power but denied an overall majority in the weekend's general election. Key said the party caucus of 60 members in the 121-seat parliament would meet Tuesday and more coalition talks would be scheduled but no arrangements had been made. Key held the final cabinet meeting of his former administration Monday and has said he plans to reshuffle his ministerial line-up after completing coalition negotiations. His first meetings were with the lone representatives of the free market ACT party, John Banks, and the centrist United Future, Peter Dunne, elected on Saturday, according to a report of DPA. Key later met representatives of the Maori Party, which also supported his former administration, with its co-leaders holding non-cabinet portfolios relating to Maori affairs. The parliamentary caucus of the main opposition Labour Party, which lost eight seats in its worst electoral performance, would meet Tuesday. Phil Goff was expected to resign as party leader but has said he would remain in parliament until 2014.
