Michael Daley says he intends to remain as the leader of the NSW Labor party despite losing the state election. Just before 10pm on Saturday, Mr Daley conceded defeat after calling Premier Gladys Berejiklian to congratulate her. The Coalition has returned for a third term in office, and it is believed they will form a majority government. Michael Daley (pictured) says he intends to remain as leader of the NSW Labor party despite losing the state election More than 1.3 million people cast their vote in what was tipped to be one of the closest elections in decades, but in the end the Coalition led the way. Labor needed 13 seats to assume the upper hand, but so far they have only picked up one seat, while surprising minority parties have secured seats. The results were no doubt influenced by the public's fury to former NSW premier Mike Baird’s contentious lockout laws, which led to an entire party being set up to fight for Sydney's dwindling nightlife. With his wife Christina by his side, Mr Daley thanked his family, candidates, the party, and the 22,000 volunteers, who he referred to as 'beautiful people in red T-shirts'. 'Thank you so much, you can hold your head high - as can our party,' he said. Mr Daley said despite the disappointing result, he would continue on as NSW Labor leader to a cheering crowd of about 200 at Coogee Bay Hotel. 'Sometimes we win them, and sometimes we lose them,' he said. 'But one thing never changes - our passion, our belief and our mission to make NSW and Australia a better place, and that is what we will continue to do.' Mr Daley became leader 134 days ago following the forced resignation of Luke Foley and said there wasn't enough time to cut through to the electorate. 'It just wasn't long enough. But I can tell you that it is my intention to remain the leader of the party,' he told the Labor function in conceding defeat. The Labor leader had always likened his chances in the election as climbing Mount Everest and on Saturday admitted he was up against an 'enormous machine'. But, he later said he was 'hopeful' of continuing as party leader when parliament returns. Mr Daley (pictured) became leader 134 days ago following the forced resignation of Luke Foley and said there wasn't enough time to cut through to the electorate Mr Daley (pictured) said despite the disappointing result, he would continue on as NSW Labor leader to a cheering crowd of about 200 at Coogee Bay Hotel His comments suggest he knows he'll be under pressure from fellow MPs considering the 2.8 per cent swing against him in his seat of Maroubra. Senior Labor MP Jodi McKay backed Mr Daley to stay on as party leader 'He has performed very, very strongly,' Ms McKay told ABC TV. 'In saying that, last week we had a bad week. We had two incidents there which I think all of us wish hadn't happened.' Ms McKay said a video of Mr Daley in September saying Asian migrants were taking local jobs was 'very unfortunate and I for one wish that that hadn't happened.' The Labor leader also made missteps during the leaders' debate mid-week when he couldn't remember how much the opposition had committed to schools and TAFE. 'They were two major setbacks for us,' she said. At one point, Mr Daley mistakenly said he had been the member for Maroubra since 1995, even though he didn't win that Sydney seat in a by-election until 2005. 'I thank the people of Maroubra who have re-elected me again tonight,' he said. 'They've been doing so continually since 1995.' Mr Daley (pictured) said after what seemed like a very, very long time, he would finally be able to have a drink or two with friends Mr Daley also called for an improvement in politics in the state to end the continual erosion of public confidence in the political system. 'One of the concerns I have about the result tonight, being someone who believes in the political stability the two-party system [provides]... is that it really hasn't been all that great a night for the major parties. 'We have more work to do,' he said. Federal Opposition leader Bill Shorten, who didn't attend Saturday's event, congratulated Ms Berejiklian for her win and Mr Daley for his efforts. 'I salute Michael Daley and his team for the positive, passionately campaign they conducted,' he said in a statement. 'They were asked to achieve the near-impossible in just a few months.' Mr Daley said after what seemed like a very, very long time, he would finally be able to have a drink or two with friends. 'I can't remember the last time I did it so I think I might treat myself with that enjoyable experience now,' he said.All rights reserved for this news site dailymail and under his responsibility