Negotiations to form the next New Zealand government began on Monday with Prime Minister-elect John Key entering talks with ACT party leader Rodney Hide in Wellington.

It was the first in a series of meetings which Key hoped will allow him to put together a government within a week.

After their one-hour talks at the Parliament on Monday, Hide confirmed ACT will support a National-led government, a move which will allow Key to become prime minister.

Hide gave a commitment that his five MPs will support National. He is expecting at least one, if not two, ministerial posts for ACT members, however they are likely to be outside of cabinet.

Key and Hide will meet again Tuesday afternoon to continue their talks.

Key said he intended to do more work on the line-up of his Cabinet on Monday night and Tuesday.

"It alters slightly depending on the requests from the other parties that we might work with, but I've got a framework in my head, but there's a few moving parts and I'm just working my way through that."

National has enough seats to govern with potential coalition partners ACT and United Future, after a sweeping victory in the 2008 general election on Saturday.

Maori Party co-leader Tariana Turia, who will meet Key along with co-leader Pita Sharples, said Key has told her he is keen to form a relationship with her party.

Key told Radio New Zealand on Monday that when the government is finalized he plans to focus on the economy, and said it was crucial that New Zealand gets on a high growth path.

"Hopefully just the sheer change of government will give some confidence to the economy, that we are going to put economic growth at the top of the agenda" he said.

However, Key said the international position is still unstable and New Zealand is in recession.

He said the government will have to work very hard to get the country on the right footing on the backdrop of what will be a difficult economic position.

Key plans to support the manufacturing sector by bringing inflation under control and easing pressure on interest rates.

While many exporters cannot compete with low wage economies, Key said it is important that exporters are competitive at adding value to their products.

In the first 100 days of office, Key's priorities are legislation for April tax cuts, and reform of the Resource Management Act.

He will hold talks with United Future leader Peter Dunne on Monday afternoon and Maori Party leaders Tariana Turia and Pita Sharples on Tuesday.

National, with 59 seats, only needs ACT's five seats to govern, but Key has said he is keen to form as broad-based a government as possible.

(Xinhua News Agency November 10, 2008)