Change Of Government, Negotiations Begin

Elections on Saturday have resulted in a change of government. Voters turned from the incumbent Labour government of 6 years with its support almost halving and a National/ACT coalition will take over with National leader Luxon as the new PM. But he has 61 seats in a 121 seat parliament and with final results not until November 3, it won’t be known until then if Luxon will need support from NZ First. But discussions are going to start before then with both ACT and NZ First.

• Nationals received 39% of the vote up from 25.6% in 2020 giving it 50 seats. Its partner ACT won 9% and 11 seats up from 10. Labour’s support fell to 26.9% from 50% and has 34 seats. The Greens won 10.8% and 14 seats. NZ First with 6.5% of the vote has 8 seats and Te Pati Maori has 4 seats. The centre-right has 61 seats, which was better than suggested by recent polls, and 68 with NZ First compared with the centre-left’s 52. Some seats are yet to be called.
• The new government plans to cut taxes, decrease the size of the public sector, increase the retirement age to 67 and reduce crime. NZ First’s Peters doesn’t believe tax cuts are affordable but his comments have been positive in supporting a National/ACT government. PM Luxon has said that negotiations will be done away from the media.
• Former Air NZ CEO Luxon became leader of the Nationals in 2021 and has turned the party around after significant infighting. Labour leader Hipkins is likely to resign after the weekend’s defeat.