/ 8 November 2008

National sweeps to power in New Zealand election

National Party leader John Key swept to power in New Zealand’s election on Saturday, toppling a nine-year-old Labour government that was dogged by economic recession and political scandal.

Prime Minister Helen Clark said she took responsibilty for her government’s defeat and she would step down from the party leadership she has held since 1993.

Key’s National Party, tipped to win by all pre-election polls, campaigned on a message of change for the Pacific Ocean nation of 4,3-million people. It has promised to stimulate the economy as New Zealand and the world grapples with a financial crisis.

”New Zealanders have voted for a safer, more prosperous and more ambitious New Zealand,” Key told jubilant supporters.

The National Party looked unlikely to have gained an outright majority in parliament but is assured of assuming power due to the support of the small free-market ACT party.

When final counts were received from all polling stations, National had 45% of the vote and Labour had 34%.

That would translate into 59 seats for National in a 122-seat Parliament, up 48 seats from the previous Parliament, compared to Labour’s 43, a fall from 49.

The ACT Party won five seats and the centrist United Future, which also offered support for National, took one.

”I can confirm their willingness to lend support to establishing a new government in New Zealand,” Key said.

End of era
In a surprise move, Clark said she would quit as Labour leader.

”My job as leader of the Labour party is complete, I will be standing down and I will be expecting Labour colleagues to elect a new leader before Christmas,” she told supporters.

Clark, who campaigned on her government’s record and warned of National Party ”secret agendas”, fired a parting shot in her concession speech.

”I do hope that all we have worked to put in place doesn’t go up in flames on a bonfire created by the right wing of politics,” she said.

Few big policy shifts are expected, with National promising tax cuts and extra spending to help cushion an economy already in recession and expected to suffer further fall-out from the global credit crisis.

However, one of the ACT Party members will be Sir Roger Douglas, the architect of New Zealand’s free-market economic reforms of the mid-1980s, whom Key said during the campaign would not be given a cabinet seat.

Analysts said National’s win had been built on the centre-right recapturing uncommited voters in the main cities, which had favoured Labour in 2005.

Among the other parties, the environmentalist Greens, took 6,5% for eight seats, and the Progressives retained their one seat. Both parties would have backed Labour.

Key said he would also talk next week to the Maori Party, which some thought might hold the balance of power in a tight contest, about having some role with the new government.

A major casualty of the election was the nationalist New Zealand First, whose seven MPs had supported Labour, but failed to be returned because it did not win a local seat or make the 5% threshold. – Reuters