New Zealand election early count shows two main parties near deadlocked

New Zealand's ruling centre-right National Party and main opposition Labour were nearly deadlocked in the popular vote as counting began in the nationwide general election on Saturday.

Results from the Electoral Commission show that with 35.3 per cent of the results counted, both parties were polling just short of 30 per cent of the popular vote, with just a few thousand votes separating the two.

A projection from New Zealand’s Electoral Commission showed the current three-party ruling coalition led by National would have a majority of just one seat, after an election dominated by a struggling economy and voter disillusionment with the two biggest contenders.

“I think it’s going to take some time before that becomes clear,” David Seymour, leader of junior coalition party ACT, said when asked if the coalition can return to power.

Left-leaning parties including Labour are aiming to make the National Party coalition the first one-term government in nearly 50 years.

GOVERNMENT COULD TAKE WEEKS

While the Electoral Commission expects to report preliminary results from 50% of voting places by 10 pm (0900 GMT), there may be no new government until after official results are released on November 27 and coalition negotiations are concluded.

New Zealand's electoral system makes coalitions the norm, and the tightness of this year's race means one or more of the country's smaller parties will almost certainly participate in a governing coalition.

The country switched to a mixed member proportional system in 1996, which means people vote for both the party and a local constituency candidate.

There are 71 constituency seats and at least 49 party seats and a party or coalition needs a majority to form a government.

Special votes, which include those from overseas voters or people outside their electorate, will not be included in the vote count until November 27. Historically, special votes have favoured the left, with parties on the right losing support following the count. This could also be key in electoral seats where races remain tight between Labour and National candidates.

Popular support for Labour and National is at historically low levels as voters have lost faith in the major parties to find solutions to the sluggish economy and to make the necessary changes to fix ageing infrastructure.

New Zealand has emerged only slowly from a prolonged economic downturn, with growth subdued, household budgets strained and unemployment rising to 5.7 per cent in the third quarter, its highest level in 11 years.

Healthcare and hospitals rank alongside the economy as leading ​concerns for voters, while housing affordability ​is still a ⁠major issue, even though house prices have broadly stabilised.

Indigenous Maori voters are also concerned about the current government's attempts to roll back historic policies meant to improve conditions for the community as well as efforts to reduce the influence of the country's founding document, the Treaty of Waitangi, on policy.