TONY EASTLEY: Soon after the people went to the polls in New Zealand, John Key looked to be a happy man - and with good reason.
His New Zealand National Party has been returned to office with 48 per cent of the vote - its largest share in 60 years. By contrast, Labour suffered one of its worst-ever results, scoring just 27 per cent of the ballot.
It means John Key is on track to push ahead with his controversial privatisation plans.
New Zealand correspondent Dominique Schwartz reports.
(Sound of crowd cheering)
JOHN KEY: What an awesome night.
DOMINIQUE SCHWARTZ: And election night was - awesome in a wonderful sense for John
Key, awesome scary for Labour and its leader Phil Goff.
PHIL GOFF: We are a bit bloodied but we are not defeated and we're not…
DOMINIQUE SCHWARTZ: That's not how it looks in the parliament. John Key's National Party won 60 seats in the 121-seat house. By renewing its alliance with minor parties, ACT and United Future, National will end up with a one-seat majority government.
But Mr Key also wants the Maori Party back on board to widen his support base. That will be more tricky, according to Maori Party co-leader Tariana Turia.
TARIANA TURIA: Unless you're able to see a bigger investment from the government in alleviating the poverty that our people are in there's no doubt that our people will walk and vote accordingly.
DOMINIQUE SCHWARTZ: The Maori Party is also opposed to a key plank of National's economic policy - its plan to sell as much as 49 per cent of four state-owned energy companies and Air New Zealand.
Asset sales are part of John Key's drive to reduce the nation's reliance on foreign borrowings and eliminate the government's record $13.5 billion budget deficit within three years. He says asset sales are not up for negotiation.
JOHN KEY: No, look, I mean we've got the numbers to put that program through. I mean, we don't need the support of the Maori Party as we didn't in 2008 to 2011.
You know I am absolutely committed to that program and I am also committed to making sure that we deliver on the terms we promised New Zealanders - majority control, Kiwi mums and dads first, 85-90 per cent of the shares going to New Zealanders and I think that's going to be critically important that we honour all those commitments.
DOMINIQUE SCHWARTZ: Opinion polls have consistently shown that two thirds of New Zealanders are opposed to privatisation - particularly the idea their assets may fall into foreign hands. Yet that fear wasn't enough to stop a massive vote for the National Party.
PHIL GOFF: It wasn't our time, but we fought a good campaign.
DOMINIQUE SCHWARTZ: Labour leader Phil Goff says he takes responsibility for his party's poor showing. He's expected to announce his resignation as leader this week, but he says perceptions that Labour was never really in the running for government didn't help.
It's not compulsory to vote in New Zealand and the voter turnout hit a 100-year low of 73 per cent. But it was even lower among traditional Labour voters.
PHIL GOFF: If people thought that it wasn't going to be close then that may have been an incentive for them to stay at home but if the figures are accurate that I've been given, our turnout was as low as 68 per cent. I think that's really sad.
DOMINIQUE SCHWARTZ: Labour also lost votes to New Zealand First - the party of maverick
politician Winston Peters and it lost them to the Greens which scored more than 10 per cent of the vote for the first time.
Prior to the election, the Greens had left the door open to going all the way with the National Party, but now they're sounding much more reserved.
The reality is that John Key will have the numbers to pursue his agenda and he says the election has given him the clear mandate to act.
In Auckland, this is Dominique Schwartz for AM.
Editor's Note: (12 January 2012) The original headline to this story was incorrect. It has been amended.
The full story...
Key's National Party returned to power in NZ
Dominique Schwartz reported this story on Monday, November 28, 2011 08:18:00
