Prime Minister Working for Strong Government

Prime Minister and Leader of the National Party Jenny Shipley said she is encouraged by the extent of the support she is receiving in the New Zealand Parliament.

"Clearly the majority of MPs support positive centre and centre-right programmes that will deliver a New Zealand we can all be proud of. The MPs who left New Zealand First tonight have made their positions clear. Peter McCardle has also contacted me with a commitment of support," the Prime Minister said.

"I welcome this support from other politicians who share my vision for the future and look forward to working with them to deliver strong, stable Government.

"I am very sorry that the Coalition Dispute Process could not bring about a resolution. The Coalition has over its 21 months of existence achieved many positive results both parties can be proud of.

"I have been advised that I will receive a letter from New Zealand First Leader Winston Peters tomorrow giving written notice that the Coalition will be terminated in seven days time.

"I intend to allow the Ministers who have come from New Zealand First to retain their warrants at this stage, until the Coalition is formerly terminated on Wednesday, 26 August, in order
to maintain economic and political stability. No other commitments have been entered into at this stage. Over the coming days I will be giving consideration to future arrangements.

"The coming months will be a test for MMP in New Zealand. The challenge to all parties in Parliament is to make a constructive contribution to New Zealand politics in the best interests
of all New Zealanders," Mrs Shipley concluded.