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New Zealand's Labor Party voted out

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Published: Nov. 8, 2008 at 2:38 PM

WELLINGTON, New Zealand, Nov. 8 (UPI) -- New Zealand's Labor Party has been voted out of office after nine years in power and the opposition National Party will form a new government, officials said.

Prime Minister Helen Clark admitted defeat Friday and said she would step down as party leader after the results of a general election showed John Key's center-right National Party gaining 45 percent of the vote to Labor's 34 percent, the BBC reported.

Key said his National Party would govern in a coalition with the United Future and ACT parties, and would seek what could be crucial support from the Maori Party. National was on target to win 59 seats in the 120-seat Parliament, with Labor winning 43 and their allies the Greens holding eight, the BBC said.

"I will be standing down and I will be expecting my Labor Party colleagues to elect a new leader before Christmas," Clark said.

Both major parties had said they favored tax cuts and extra spending in the face of the global credit crisis, which most expect will hit New Zealand hard, the broadcaster reported.

Topics: Helen Clark
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