New Zealand Prime Minister Helen Clark has admitted defeat in a general election and says she will step down as leader of the Labour Party.
New Zealand Prime Minister Helen Clark has admitted defeat in a general election and says she will step down as leader of the Labour Party.
John Key's centre-right opposition National Party won 45% of the vote, against 34% for Labour, according to preliminary results.
John Key's centre-right opposition National Party won 45% of the vote, against 34% for Labour, according to preliminary results.
Election officials say this will give National 59 seats, just short of the 61 needed for a majority in parliament.
Election officials say this will give National and its two smaller allies enough seats to form a majority.
National's win ends nine years in power for Mrs Clark and Labour.
National's win ends nine years in power for Mrs Clark and Labour.
National could now look to the Maori Party to form a government, analysts say.
National said it would govern with the United Future and ACT parties, and would also look for support from the Maori Party.
According to official figures, National is set to win 59 seats, Labour 43 and their allies the Greens, with 6% of the vote, eight, in the 120-seat parliament.
According to official figures, National is set to win 59 seats, Labour 43 and their allies the Greens, with 6% of the vote, eight, in the 120-seat parliament.
I will be standing down and I will be expecting my Labour Party colleagues to elect a new leader before Christmas Helen Clark
I will be standing down and I will be expecting my Labour Party colleagues to elect a new leader before Christmas Helen Clark
Mr Key said "hundreds and thousands" of people across the country had "voted for change".
Mr Key said "hundreds and thousands" of people across the country had "voted for change".
"Today, New Zealanders have voted for action, for a safer, more prosperous and more ambitious New Zealand," he was quoted by AFP as saying.
"Today, New Zealanders have voted for action, for a safer, more prosperous and more ambitious New Zealand," he was quoted by AFP as saying.
Mrs Clark said she accepted responsibility for the result and her job as leader of the Labour Party was complete.
Mrs Clark said she accepted responsibility for the result and her job as leader of the Labour Party was complete.
"I will be standing down and I will be expecting my Labour Party colleagues to elect a new leader before Christmas," she told reporters.
"I will be standing down and I will be expecting my Labour Party colleagues to elect a new leader before Christmas," she told reporters.
The country's economic recession loomed large in the campaign. But few major policy shifts are expected once the new government takes over, analysts say.
The country's economic recession loomed large in the campaign. But few major policy shifts are expected once the new government takes over, analysts say.
Both Labour and National had promised tax cuts and extra spending, amid fears that the global credit crisis will hit New Zealand hard.
Both Labour and National had promised tax cuts and extra spending, amid fears that the global credit crisis will hit New Zealand hard.
About three million people were registered to vote - a record number for the country - and early reports suggested turnout was high.
About three million people were registered to vote - a record number for the country - and early reports suggested turnout was high.
Maori interests
Maori interests
Since the country introduced proportional voting in 1996, neither of the big parties has won an outright majority and they have always relied on the support of minor parties.
Since the country introduced proportional voting in 1996, neither of the big parties has won an outright majority and they have always relied on the support of minor parties.
Helen Clark is one of the world's longest-serving elected female leaders
Helen Clark is one of the world's longest-serving elected female leaders
While National can look to allies in the centre and on the right, it may have to seek the backing of the Maori Party, which is expected to retain its four seats in the 120-seat parliament.
While National can look to allies in the centre and on the right, it may have to seek the backing of the Maori Party, which is expected to retain its four seats in the 120-seat parliament.
Among Maori demands are the repeal of a law preventing Maoris from claiming rights to the foreshore and seabed, and greater control over government spending on indigenous programmes to prevent waste.
Among Maori demands are the repeal of a law preventing Maoris from claiming rights to the foreshore and seabed, and greater control over government spending on indigenous programmes to prevent waste.
"We'll decide totally based on... what we are able to advance for our people," said Maori Party leader Tariana Turia.
"We'll decide totally based on... what we are able to advance for our people," said Maori Party leader Tariana Turia.
Any deal, she added, would "come at a cost".
Any deal, she added, would "come at a cost".
Mr Key has said he will be willing to strike a deal with the Maori Party, even though he said his party "diametrically opposed" some of its policies.
Mr Key has said he will be willing to strike a deal with the Maori Party, even though he said his party "diametrically opposed" some of its policies. />
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