the following days revealed National had won , allowing it to form a government with the majority of one seat but required the election of a Speaker from the opposition benches (Peter Tapsell of the Labour Party) to hold a working majority in the House. At the same time as the election, however, a referendum took place which established the MMP electoral system for future use in New Zealand general elections as widespread dissatisfaction with the existing political system led to reform. This would have a significant impact on New Zealand politics. Some National Party MPs defected to a new grouping, United New Zealand in mid-1995 whilst other splinter parties emerged. And, as a result of the new electoral mechanics, the New Zealand First party, led by former National MP and former Cabinet minister Winston Peters, held the balance of power after the 1996 election. After a prolonged period of negotiation lasting nearly two months, in which New Zealand First played National and Labour off against each other (both parties negotiated complete coalition agreements), New Zealand First entered into a coalition with National despite the fact many expected Peters to form such a coalition with Labour. Under the coalition agreement, Peters became Deputy Prime Minister and had the post of Treasurer especially created by the Crown for him. New Zealand First extracted a number of other concessions from National in exchange for its support. The influence of New Zealand First angered many National MPs, particularly Jenny Shipley. When, in 1997, Shipley toppled Bolger to become National's new leader, relations between National and its coalition partner quickly deteriorated. After Shipley sacked Peters from Cabinet in 1998, New Zealand First split into two groups and half the MPs followed Peters out of the coalition but the remainder broke away, establishing themselves as independents or as members of new parties of which none survived the 1999 election. From the latter group National gained enough support to continue in government with additional confidence support of Alamein Kopu a defect Alliance List MP. The visibly damaged National Government managed to survive the parliamentary term, but lost the election to Labour's Helen Clark and the Alliance's Jim Anderton, who formed a coalition government leaving National in opposition for nine years. Opposition (1999–2008) Shipley continued to lead the National Party until 2001, when Bill English replaced her. English, however, proved unable to gain traction against Clark, and