New Zealand's Prime Minister Bill English. Credit:AP Asked if foreign ownership had come up, Peters said "I don't think there's anyone in the press gallery who would not think foreign ownership is part of these talks." The talks to form New Zealand's next government resumed in earnest after final election results showed both main parties could form viable coalitions. The ruling National Party and Labour opposition started separate negotiations on Sunday in Wellington with the nationalist NZ First Party, whose support both require to reach a majority in Parliament. Peters has set a deadline of October 12 to make a decision. While National won the biggest share of the vote, the chances of it failing to secure a fourth term in office increased over the weekend when official election results handed Labour and its ally, the Greens, two additional seats. They now represent a more stable option for Peters because the three parties between them can muster a three-seat majority instead of just one.

NZ Labour Party leader Jacinda Ardern. Credit:AP "It's game on," said political analyst Bryce Edwards. "There are only two seats separating the center-left and the center-right now, so the idea of a moral mandate for National is going to have much less sway." National won 56 of the 120 seats in Parliament, down from 58 estimated on election night, official results from the Electoral Commission showed on Friday. Labour won 46 seats, one more than the preliminary count after the September 23 vote, and the Greens lifted their tally to eight from seven. NZ First was unchanged on nine seats, while the ACT Party has one. James Shaw celebrating with his fellow party members at the Greens electrate party. . Prime Minister Bill English and a team of senior ministers met with Peters and his advisers for several hours on Sunday, saying little to waiting media when they emerged. Peters also held talks with Labour leader Jacinda Ardern and her team later on Sunday.

The parallel negotiations will centre on what policy concessions and ministerial posts National and Labour are willing to offer Peters in return for his support. "Policy is everything, otherwise it's just about personalities," Peters told reporters. "We do have a number of serious policies at the top of our list." The 72-year-old populist campaigned on a platform of slashing immigration, reducing foreign ownership of New Zealand assets and reforming the central bank. He also wants to move Auckland's port to the impoverished regional economy of Northland. National has delivered eight consecutive years of economic growth and returned the budget to surplus during nine years in power. But a strong challenge from Labour under 37-year-old Ardern has highlighted growing concerns about poverty, homelessness and the environment which the new government will need to address. The environment and climate change also appear to be on Monday's agenda.

The addition of Labour's foreign affairs and environment spokesman David Parker to the Labour team that headed into talks on Monday at lunch time indicated the focus would be on the environment and climate change as well as the contentious "water levy" that he has championed. New Zealand's German-style electoral system is conducive to coalitions and allows any grouping that can attain a majority to govern. Still, if Peters decides to anoint a Labour-led administration, it would be the first time since proportional representation was introduced in 1996 that the party with the largest share of the vote is excluded from government. Loading A third option for Peters would be to sit on the cross benches and support a minority National government on confidence and supply. Stuff.co.nz, Bloomberg