THE OUTCOME OF New Zealand’s election remained too close to call as early results began to roll in this morning, with none of the parties expected to secure a majority after a campaign dominated by worries over rising costs of living and the economy.

Kiwis are struggling to make ends meet – the price of basic goods remains stubbornly high and unemployment at its highest in more than a decade.

The war in the Middle East and the subsequent global fuel shock have been widely blamed for the hit to New Zealand’s trade-dependent economy.

Prime Minister Christopher Luxon hoped his right-wing coalition could cling to power with promises of no new taxes, after three fractious years in office, two failed bids by his own National Party to oust him as leader and an economy in the doldrums.

Former premier Chris Hipkins’s centre-left Labour have promised help with living costs, from free doctor’s visits and prescriptions to a cap on public transport fares.

He said on Friday he was sure his party would “exceed expectations”.

‘Very close’

Labour supporters watching election results come in during Labour leader election night function. AAP Image / Elias Rodriguez AAP Image / Elias Rodriguez / Elias Rodriguez

At a Labour event in Upper Hutt near Wellington bedecked with red balloons, party workers were quietly confident they had secured the largest number of seats.

And at a National gathering in the country’s largest city of Auckland, cheers rose from the crowd as the party’s candidates were shown to be ahead.

Police minister and National lawmaker Mark Mitchell told journalists it was “very close”.

“When you reflect on what’s happening globally, we certainly see lots of geopolitical uncertainty,” he said.

“I think considering that we’ve governed through that period, we’re actually doing quite well.”

The electoral commission said the latest information shows the two parties neck-in-neck, with 50% of all votes counted.

Neither is expected to win enough seats in New Zealand’s parliament to govern alone.

That has focused intense attention on the country’s minor parties, in particular the upstart centrist Opportunity Party.

Under the country’s mixed-member proportional representation (MMP) system, voters must tick two options – a general party list as well as an individual member to represent their electorate.

Early results put Opportunity winning over 5% – the threshold needed to gain seats in parliament without an electorate candidate win.

Anti-establishment feeling

NZ Minister of Police and National MP Mark Mitchell appears on the screen during the National Party election night function. Alamy Stock Photo Alamy Stock Photo

The party is led by former KPMG consultant Qiulae Wong, who has vowed a kinder, gentler politics and said she could work with whichever party wins the most seats.

“You guys have voted for unity over division,” she said as votes trickled in.

“You have voted to change New Zealand politics for good.”

David Capie, a professor at Victoria University of Wellington, said voter fatigue with the two establishment parties was fuelling Wong’s rise.

“In some ways, it looks to me a bit like a bit of a blank slate where people are projecting what they would like,” he said.

A final opinion poll released on Friday put Labour at 30% of the vote, just ahead of the National Party.

Luxon has said he’s “given up on polls” and urged voters on Friday to “stick to the plan that’s working”.

“Don’t risk a Labour government.”

The centre-left party was turfed out of office in 2023, having struggled to inspire voters following the resignation of former Prime Minister Jacinda Ardern, who became a global progressive icon.

Her replacement, Hipkins, hasn’t quite inherited her star quality – instead portraying himself as an everyman, joking about his poor dress sense, love of sausage rolls and passion for DIY.

The party will also likely need to govern in coalition with the left-wing Green Party, which has surged to record support with a focus on the rising costs of living.