New Zealand Election: Conservative leader Christopher Luxon to form govt

New Zealand Election: New Zealand is set to get a center-right government after the Chris Hipkins-led Labour Party conceded defeat on Saturday. The outgoing Prime Minister has spent just nine months at the top job after taking over from Jacinda Ardern in January. With most of the votes tallied, conservative former businessman Christopher Luxon's National Party and its coalition partner ACT are projected to win 62 seats.

“Earlier this evening I called Christopher Luxon to congratulate him on National’s results. As it stands, Labour is not in a position to form another government,” Hipkins told supporters in Wellington.

The election campaign had been dominated by an increasingly difficult economic situation and a spike in the cost of living. Luxon said on Saturday that New Zealanders had "reached for hope and voted for change".

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With 97% of votes tallied, National had 39% while Labour trailed on 27%. As the result stands, National can form a government with the support of its ally the libertarian ACT Party, on 9%. However, they may yet need the backing of the nationalist New Zealand First Party, on 6%, to reach a majority in parliament.

Both parties had tried to woo voters with promises to ease surging petrol prices, fix chronic housing shortages, and halt the skyrocketing prices of staple foods.

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Ardern led the Labour Party to the first outright majority since New Zealand switched to a proportional representation system in 1996 during the previous polls. Support for the party appears to have declined steadily since – collapsing from 50% in 2020 to one of its heaviest defeats. Forecasts point to 34 seats in New Zealand's 120-seat parliament.

The election also sees the return of New Zealand First and its leader – 78-year-old Winston Peters. The nationalist New Zealand First had been ousted from parliament at the last election in 2020 but is currently above the 5% threshold required to return to parliament.

(With inputs from agencies)