After months of prevarication, National leader Christopher Luxon has said he will pursue a coalition with Winston Peters’ New Zealand First after the October election, but only as a last resort.
Luxon even left open the prospect of a sensational return for Peters as deputy prime minister in declaring himself open to a deal with the politician.
The National leader said in a video posted to social media that his preference was to form a strong and stable two-party coalition government between his party and Act.
However, he added he would be prepared to form a coalition with NZ First if that would get his party into power.
Coalitions are the norm under New Zealand’s electoral system and only once since the system was introduced in 1996 has a party been able to govern alone.
New Zealand will hold its election on 14 October, with polls pointing towards a change after two terms of Labour-led government, to the centre-right National party.
However, the same polls show National falling short of a majority and needing at least one other party to govern, with right-wing libertarians Act and Peters’ populists NZ First on the menu for Luxon in post-election negotiations.
“My strong preference is to form a strong and stable two party coalition government between National and Act,” Luxon said.
“I believe that government would be in the best interests of New Zealanders at this very uncertain time.
“However, if New Zealand First is returned to parliament and I need to pick up the phone to Peters … I will make that call.”
Luxon had been peppered with questions about whether he would work with NZ First for months, having already ruled out left-leaning and far-right fringe parties.
On Newstalk ZB, Luxon said he declared his hand due to his view that a change of government was desperately needed.
“Labour’s record is abysmal in three years with an absolute majority and God help us if they end up going with Te Pati Māori and the Greens,” he said.
“We’d all be packing up and leaving.”
The decision changes the dynamic of the election campaign, which will shift to the possibilities of how a National-Act-NZ First coalition could govern.
While National and Act are aligned on key issues, NZ First is opposed to their centrepiece promise for tax cuts, which Peters says New Zealand cannot afford.
It is not yet clear whether NZ First will be in parliament: parties need to win at least 5% of the vote to return MPs in New Zealand, and the party is polling at around that threshold.
Australian Associated Press and Reuters contributed to this report