The Nationals hold the balance of power in Western Australia

08/09/2008 01:16:35

The leader of the Labor Party in Western Australia says he is excited about the possibility of forming government with the support of the Nationals.

A poor resuilt in the weekend's state election has losened Labor's grip on power.

Both Labor and Liberal have claimed 24 seats and each need the Nationals backing to form government.

Natasha Harradine reports the Nationals hold the balance of power with the two major parties winning 24 seats apiece.

The Nationals leader Brendan Grylls says he will form government with whichever party supports his Royalties to the Regions proposal, a plan to return a quarter of the State's mining and petroleum royalties to regional areas.

He met with Labor leader Alan Carpenter who says the counting is incomplete but he is interested in talking more with the Nationals.

Liberals leader Colin Barnett will meet with Mr Grylls tomorrow but has already said he will not support the royalties proposal.

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