National and Act reach agreement to form a government

National and ACT have reached an agreement which gives incoming prime minister John Key the votes he needs to form a government.

At a meeting in Parliament today ACT's leader, Rodney Hide, pledged to support National on confidence and supply.

National won 59 seats in the election and ACT 5. Between them they have 64, a majority in the 122-member Parliament.

"I can confirm that there will be a National-led government," Mr Key told reporters after meeting Mr Hide.

"There's an assurance from the ACT Party that one way or another they will be supporting a National-led government."

They are not forming a coalition government and Mr Hide will hold a ministerial position outside cabinet, the same arrangement Labour worked out with Winston Peters when he was foreign minister.

Mr Hide's portfolio as a minister has not been decided and there are other aspects of the agreement still to be finalised at a meeting tomorrow.

source :nzpa