WELLINGTON – New Zealand opposition leader Christopher Luxon said he will form a new government of the centre-right after defeating Prime Minister Chris Hipkins’ Labour Party in Saturday’s general election.

“National will be in a position to lead the next government,” Mr Luxon told supporters in Auckland. “My pledge to you is that our government will deliver for every New Zealander.”

With at least 95 per cent of votes tallied, National had 39 per cent, while Labour trailed on 27 per cent. As the result stands, National can form a government with the support of its ally, the ACT Party, on 9 per cent.

But they may yet need the backing of the nationalist New Zealand First party, on 6 per cent, to reach a majority in Parliament.

Labour and its partners on the left, the Green Party and Te Pati Maori, have no path to power.

National’s win means Mr Luxon will become New Zealand’s next prime minister. 

The election also sees the return of New Zealand First and its leader Winston Peters, 78. Ousted from Parliament at the last election in 2020, New Zealand First is above the 5 per cent threshold required to return to Parliament.

Labour’s support has collapsed from 50 per cent at the 2020 election. That year, Ms Jacinda Ardern led the party to the first outright majority since New Zealand switched to a proportional representation system in 1996.

Mr Hipkins took over when Ms Ardern suddenly stepped down in January 2023.

He has struggled to convince New Zealanders that Labour deserves a third term as the economy stutters amid a cost-of-living crisis.

Te Pati Maori

Another feature of the provisional results is increased support for Te Pati Maori – the party that stands for the rights of the indigenous Maori people.

It is on track to win four of seven seats reserved for voters on the Maori roll. Those seats have traditionally been held by Labour.

If Te Pati Maori wins more seats than its share of the party vote implies, it would create a so-called overhang and increase the size of Parliament beyond 120 seats.

That could raise the number of seats required for a majority and see Mr Peters’ support required for a government to be formed.

Mr Hipkins said he knew the election would be an uphill battle, and declined to say whether he will stay on as Labour Party leader.

“No government has replaced a prime minister in an election year and carried on to win,” he told supporters. “I gave it my all to turn the tide of history, but alas, that was not enough.”

The new government faces a challenging economic outlook, with the central bank forecasting a recession as it keeps interest rates high to bring inflation under control.

Mr Luxon said his government “will rebuild the economy and deliver tax relief”. “We will bring down the cost of living, we will restore law and order,” he said.

“We will deliver better healthcare, and we will educate our children so they can grow up and live the lives that they dream of.” BLOOMBERG