New Zealand PM credits handling of economy for win

New Zealand Prime Minister John Key said on Sunday that his steady handling of the fragile economy was the "overwhelming" reason for the center-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.

"I don't intend to take the party veering off to the right. We've held the center ground for the last six years. We're not looking to do radical things."

Accusations of dirty politics and mass s

pying dominated the campaign ahead of Saturday's general election but had little effect 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 will not forget his coalition partners of the past two elections - ACT New Zealand, United Future and the Maori Party - and will 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, programs 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 spiraling debt under control.

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.

It was a bleak poll for Labour, but defiant leader David Cunliffe refused to step down.

"Of course I take responsibility (for the loss), ... but at the end of the day we need to move forward, and our campaign to win in 2017 starts right now," he said as Labour faces at least nine years sidelined, starting from when Helen Clark's third-term government lost to Key in 2008.

(China Daily 09/22/2014 page11)