Rotorua MP Todd McClay has found himself in opposition but says he will not be commiserating for long.

McClay said he and fellow members of the National Party negotiation team heard Winston Peters' announcement he was going into coalition with the Labour Party along with everybody else last night.

"It's fair to say, we were disappointed. People are very tired, this negotiation has been very long and quite intense."

McClay will now lose his Minister of Trade and State Owned Enterprises position.


"It has been a real privilege to be a minister, it really is the second best job," he said.

"Of course after being the MP for Rotorua.

"I am committed to working hard to support local people so our city can continue to grow and prosper."

McClay has been Minister of Trade since December 2015.

"I very much enjoyed the work I was given to do," he said.

"Ultimately, we have elections and MMP decides who the next government is."

It is not yet known who will replace McClay in that role or which role in the National Party he will now be given.

"All of that will unpick itself over the next couple of weeks," he said.


McClay will now head home to Rotorua to spend the long weekend with his family.

"I will take stock a little bit and enjoy the beautiful scenery that is Rotorua," he said.

"The formulating of a new government will wait till next week and I will be back in Wellington for a caucus meeting early in the week."

McClay said he wouldn't be taking too much time to commiserate his party's loss.

"The people of Rotorua elected me and I have to work now to do what is best for them."

Since he was first elected in 2008 the National Party has never sat in opposition.


McClay said he wanted to congratulate the new government and Rotorua-based NZ First list MP Fletcher Tabuteau who he said will "likely be a minister" in the new government.

"He has always been willing to work closely with me and delivering for Rotorua has been the most important thing.

"I have a lot of respect for him, he's very capable."