At the 1993 election, National was narrowly able to retain government owing partly to a slight economic recovery and the opposition being split between three competing parties. National's unprecedented eighteen-seat majority had virtually disappeared and the country faced an election night hung parliament for the first time since 1931, with National one seat short of the required 50 seats to govern. Final special votes counted over 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.