New Zealand PM credits economy for third term win

New Zealand Prime Minister John Key Sunday said his steady handling of the fragile economy was the “overwhelming” reason for the centre-right National Party’s historic third election victory.

“They saw the economic direction we wanted to continue to take the country in and the things we have achieved over the last six years,” he said, pledging to hold the same steady economic line.

It was important for the party to remain grounded and not succumb to “arrogance”, he said.

PM John Key


“I don’t intend to take the party veering off to the right. We’ve held the centre ground for the last six years. We’re not looking to do radical things.”

Accusations of dirty politics and mass spying dominated the campaign ahead of Saturday’s general election but had little impact as Key’s National Party increased its level of support.

It is the first time in the seven elections since New Zealand adopted a complicated proportional representation system that a party has won sufficient seats to govern alone.

But Key said he would not forget his coalition partners of the past two elections — ACT, United Future and the Maori Party — and would offer them roles in his new administration.

“I always believed one of the reasons we did hold our support was because in the worst of economic times we really did continue to fund, and had to borrow to fund, programmes to support the most vulnerable New Zealanders and I know there’s more work to be done,” he said.

The central bank estimates the economy will grow 3.7 percent this year and budget figures say this should lift to 4.0 percent next year, while inflation in the year to June was a benign 1.6 percent.

The government also posted its first budget surplus in six years in May, and says it has a plan to keep spiralling debt under control.

– ‘Government for all New Zealanders’ –

As the opposition left-wing parties licked their wounds following the rout, Key promised an administration “that governs for all New Zealanders” and even contemplated contesting a rare fourth term in office at the next election in 2017.

“Well, I’d like to,” he said. “You’ve got to believe we’ve got a great chance of doing that but I’m not silly enough to know that to get that fourth term we have to deliver over the next three years.

“Fourth term sounds great, but you’ve got to earn it.”