By Lucy Craymer and Alasdair Pal
WELLINGTON, Nov 9 (Reuters) – Dozens of newly elected lawmakers will start to arrive at New Zealand’s parliament this week, even as the country faces a weeks-long wait to learn who will govern after an election that left the incumbent centre-right bloc with a razor-thin lead.
Preliminary results gave Prime Minister Christopher Luxon’s National Party, ACT New Zealand and New Zealand First 67 seats in a 131-seat parliament, one more than the 66 required for a majority.
But almost 400,000, or nearly 15% of votes, have yet to be counted, and official results are not due until November 27. Both Luxon and Labour leader Chris Hipkins have said they would wait for final results before entering formal coalition negotiations.
The tight result has created a period of uncertainty for incoming legislators, including seven from the centrist Opportunity Party, which crossed the 5% threshold to enter parliament for the first time.
Opportunity leader Qiulae Wong, a political newcomer who could become pivotal if the final vote changes the outcome, said her caucus was meeting in Wellington to begin preparing for parliament.
Wong has received calls from Hipkins and Green Party co-leader Chloe Swarbrick, radio station Newstalk ZB reported, though she said no formal negotiations had begun. Luxon later said he would call Wong “shortly”, according to Radio New Zealand.
The election has also underlined voters’ frustration with the two dominant parties, with support flowing to smaller parties across the political spectrum as voters looked for new solutions to problems, such as the weak economy, rising costs and failing healthcare. Labour narrowly led National in the popular vote, but National secured enough electorate seats to keep its three-party bloc marginally ahead.
MARKETS ON WATCH
Investors are watching the political uncertainty closely, particularly given pressure on the New Zealand dollar and questions about the direction of fiscal policy.
Kelly Eckhold, chief economist at Westpac Bank in New Zealand, said markets would be on edge over the next couple of weeks as the country worked out the result, with the exchange rate a particular focus.
“The likelihood is that we will end up with some sort of centre-right government. The question will be: Will it require the support of TOP (Opportunity)? And what will be required to be agreed to be able to get there?” he said.
After New Zealand Finance Minister Nicola Willis lost her seat on Saturday night, Brad Olsen, chief economist at economic consultancy Infometrics, said the bigger question at the moment was who is going to be the next finance minister.
(Reporting by Lucy Craymer and Alasdair Pal; Editing by Bill Berkrot)
