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Bill English is NZ's new Prime Minister, Paula Bennett new Deputy

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Wellington: Bill English and Paula Bennett have emerged victorious from caucus, having been voted New Zealand's new Prime Minister and Deputy on Monday morning.

More than a decade after he tried and failed to become the country's leader, Mr English from the ruling National Party becomes the country's 39th Prime Minister. The position became vacant after John Key's formal resignation last week.

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Paula Bennett succeeds Mr English as deputy.

Mr English said he was "excited and humbled" to have been elected.

Asked whether he would stay on for the full term if he wins the elections in 2017, Mr English said: "That's about three layers of hypotheticals there. Let's wait until I'm sworn in first."

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He is expected to be sworn in on Monday afternoon.

Mr English takes the reins of a country in good economic shape compared to much of the developed world. He has held several ministerial posts across education, health and finance since joining parliament in 1990.

As finance minister, his key policies included moves to partly privatise several state-owned energy firms and Air New Zealand, cutting personal tax and corporate tax rates and increasing the goods and services tax. 

Heading into the caucus meeting, Mr Key said he had confidence in his successor.

"But I know I'm passing over to tremendously good hands in the form of Bill English and Paula Bennett and they're going to steer the country extremely well," Mr Key said.

Ms Bennett is the first Maori in a leadership position in a long while. In comments after the vote she said it was part of her identity, but was not going to pretend to have grown up on a marae.

Despite initial competition from Health Minister Jonathan Coleman and Police Minister Judith Collins, Mr English was the last man standing in the race.

Both stood down on Thursday after it became clear the 54-year-old finance minister had the backing of the majority of the 59-member caucus.

Ms Collins says she didn't expect to be punished for her failed bid at the leadership, nor does Simon Bridges who was hopeful for a continued role in cabinet.

The transport minister on Saturday withdrew his own bid to be deputy, clearing the way for fifth ranked Mrs Bennett to be elected unopposed.

He said the new leaders were "spoilt for choice" with those around them.

Mr English has already revealed senior cabinet minister Steven Joyce would replace him as finance minister.

"You'll see probably a typical finance minister with some interest in particular areas," Mr Joyce said as he walked into the vote.

There are expected to be more tweaks to come in terms of cabinet and policy.

"We'll use it as an opportunity for a stocktake and we'll see how that looks in January, February," he said.

AAP, Stuff.co.nz, Reuters

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