There's been a coalition formed, Nimh.
"October 26, 2005
New Zealanders Review Future of Government
(Angus Reid Global Scan) – Many adults in New Zealand believe their new administration could remain in place for three years, according to a poll by Colmar Brunton released by One News. 52 per cent of respondents think the government can last for the entire term, while 44 per cent disagree.
Prime minister and Labour party leader Helen Clark has acted as New Zealand’s prime minister since December 1999. The country’s voters renewed the House of Representatives on Sept. 17. Official results gave Labour 41.1 per cent of the vote and 50 legislators, with the opposition National party a close second with 39.1 per cent and 48 lawmakers in the 121-seat legislative branch.
United Future and New Zealand First agreed to support an administration encompassing Labour and the Progressives in confidence and supply votes for the next three years. On Oct. 19, the new government was installed. Clark retained her position as prime minister, in a cabinet featuring New Zealand First leader Winston Peters as foreign minister, Phil Goff as defence minister, Rick Barker as interior minister, and United Future leader Peter Dunne as revenue minister. Michael Cullen retained the finance portfolio.
Clark explained the rationale for the agreement, saying, "Our country’s been quite polarized and divided by this election, and people are looking for a government that can work with a wide range of parties and try and bring people together again."
The Greens—who had expressed their intention to work with Labour during the electoral campaign—were not a part of the final coalition agreement. Greens co-leader Rod Donald lamented the situation, saying, "Unfortunately, Labour succumbed to the threats from New Zealand First and United Future. We are disappointed by that, but we have known all along that that was going to be the likely outcome."
Collaboration between Labour and the Greens ceased before the 2002 ballot, after disagreements on the issue of genetically modified organisms (GMO)."
http://www.angus-reid.com/polls/index.cfm/fuseaction/viewItem/itemID/9565
Quite a full explanation here:
http://globalpolitician.com/articledes.asp?ID=1320&cid=9&sid=0
The Laobor PM, Helen Clark, has retained her position, but there are some strange bedfellows.