New Zealand: Jockeying for potential coalition partners began yesterday after New Zealand prime minister Helen Clark's ruling Labour Party pipped the National opposition by one seat in a nail-biting election.
Ms Clark is poised to become the first Labour leader ever to win three straight terms after she stormed home to finish ahead of former central bank governor Don Brash's National Party.
Labour had 40.7 per cent of the vote compared with 39.6 for conservative National when initial vote counting ended late on Saturday, although around 10 per cent of the ballots have yet to be counted.
That would translate into 50 seats for Labour in a 122-seat parliament, down one from the previous parliament, compared with National's 49. Results will be declared official on October 1st.
The close result, with both parties short of an outright majority, means at least two weeks of political horse-trading with the six key minor parties who won seats, in a bid to create a workable coalition government.
Mr Brash has refused to concede defeat but Ms Clark, who remains caretaker leader, appears to have the most potential allies.
"What I intend to do is keep open phone lines and talk with a range of party leaders," Ms Clark told Radio National.
The campaign was fought mainly on local issues like tax, spending and indigenous Maori rights. Ms Clark trumpeted her record of stable government, economic growth averaging 4 per cent over the past five years, and low unemployment.
Mr Brash, a 64-year-old political novice, fought hard and his promises of NZ$9 billion ($6.4 billion) worth of income tax cuts over three years almost pushed him across the line. He refuses to give up, saying that 218,000 votes still to be counted could tip the balance in his favour. - (Reuters)