KEY POINTS:
Prime Minister-elect John Key met with Act's Rodney Hide and Heather Roy and United Future's Peter Dunne at Parliament today, in the first steps towards forming a new National led coalition Government.
At the first formal talks after Saturday's election Mr Hide said he had given Mr Key
his confirmation that he would support him.
John Key said Mr Hide accepted Sir Roger Douglas would not be made a minister.
"I can confirm there will be a National-led Government," Mr Key told reporters.
He confirmed Mr Hide would get a ministerial role outside Cabinet.
No formal agreement has yet been signed.
Mr Key noted that Mr Hide had economic credentials but would not say if that meant he was in the running for commerce or any other position.
United Future leader Peter Dunne has now gone in to see Mr Key.
On the way in to the meeting, Mr Hide has said he did not have any bottom lines in negotiations and had already made it clear he would support a John Key Government.
However he will be discussing Act's there main policies including the three strikes rule for violent offenders, scrapping of the ETS and cut backs on Government spending and bureaucracy.
Initially Mr Key was left hanging as he emerged from his offices for a pre-arranged handshake for media with Mr Hide only to be told he had not arrived yet.
Mr Hide then made Mr Key wait inside the glass doors of the National offices for about two minutes while he spoke to media.
Earlier Mr Key arrived at Parliament ready to get on with forming a government.
He will be meeting United Future leader and the party's sole MP Peter Dunne at around 2.30pm, after his meeting with Act.
Today he said it felt fantastic to be arriving at Parliament ready to head a Government.
"It's good to be here, there's a lot of work to be done today. I want to get down to the business of negotiating the arrangements with the other parties as soon as we can so we can put together a stable effective government and I am quite confident we can do that quite quickly.
"I think the country wants us to get on with it and that's the spirit we are going to go into those negotiations on."
He was keen to get on with dealing with pressing issues such as the economy, law and order and education and had no illusions the job would be easy.
Mr Key said he never expected to become Prime Minister when he arrived in Parliament in 2004 and had good breaks and Caucus support.
He was asked about what would have happened had New Zealand First had got 1 per cent more of the vote and been in a position to support Labour with other parties.
"I think New Zealanders though responded to the fact we took a principled view, I think there are some New Zealand First voters who moved to National on the back of that, I think there were some Labour supporters that didn't want to see NZ First as part of a government in the 2008-2011 period, and voted for National."
Mr Key said National numbers had held up well even when the South Auckland results came in.
Mr Hide is talking tough about what he wants in order to support National - he has said a three strikes sentencing policy, cutting government spending and dumping the emissions trading schemes will be on the table because ACT supporters wanted them.
Mr Key has ruled out Act MP Roger Douglas being a minister but Mr Hide says that issue is not dead.
Mr Key said Mr Hide would try to get the best result for his party.
"There will always be people negotiating and trying to use their strength as best they can but, as I said, I am sure Act supporters will want to see a National-led Government installed and installed reasonably quickly," he said.
"We've got the situation internationally with the financial position where I think it's important that we are at Apec if we possibly can be."
Mr Key hopes to be sworn in by Monday next week is so he could leave for Peru, where the Apec summit meeting is being held the following day.
Mr Key said he expects the Apec summit, where the leaders of all the world's major economies will meet, is going to turn into an economic summit. Mr Key said it may be possible. The Governor-General would have to agree to the move without the final special votes results on November 22.
"We've got some meetings on that today."
He was asked if he would look to the Maori Party if Act became too difficult. Mr Key said he had a good personal relationship with Mr Hide.
"He's made it quite clear his supporters want to see a National-led Government... in the end a National-led government needs to be installed and installed reasonably quickly."
Mr Key is meeting with the Maori Party tomorrow to see if they can form a relationship.
Australian Prime Minister Kevin Rudd has rung Mr Key to congratulate him and invite him to visit. The offices of Prime Minister of Britain Gordon Brown and of Canada Stephen Harper were arranging times to call.
- NZPA