NZ First chooses Labour

Photo credit: Newshub

NZ First leader Winston Peters has announced he will form a Government with Labour. 

During his announcement speech on Thursday evening, Mr Peters said the decision represented the majority view of MMP.

He said siding with National would have meant a "modified status quo", versus "change" with Labour.

While it was speculated this would mean a coalition including the Green Party, Mr Peters said instead they had a confidence and supply agreement.

Mr Peters said the coalition was the "decision of the New Zealand people" and that the call was one from NZ First, rather than his sole decision.

"This decision is owed to the New Zealand people, who put us here. Not to the politicians, but to the New Zealand voters."

He refused to confirm what his position in the Government might be.

Mr Peters said they believed there was a high chance that the economic slow-down and that capitalism needed to "regain its human face".

On Labour's floor, there was a cry of jubilation as members watched Mr Peters make his announcement.

"In the last 10 years I have never heard sounds like that on Labour's floor," Newshub's Lloyd Burr said.

Labour leader Jacinda Ardern's next step is to approach Dame Patsy Reid to ask if she can form a Government.