New Zealand Prime Minister Helen Clark has conceded defeat to the centre-right National Party after Saturday's election and is to step down as Labour party Party leader.
Ms Clark telephoned National leader John Key to concede that her Labour Party had lost the election, Television New Zealand reported.
The prime minister (58), who has had nine years in power, announced in Auckland that she would quit as Labour leader by the end of the year. "As is obvious to all, tonight has not been our night,'' she told supporters as she conceded defeat shortly before midnight. "I accept responsibility for the result."
With almost 99 per cent of the vote counted, Mr Key's centre-right National Party had 45 per cent of the vote, which would translate to 59 seats in the 122-seat parliament with support from its allied parties enough to give it a majority.
The centre-left Labour Party, which had been seeking a fourth three-year term, had 34 per cent of the vote, translating to 43 seats.
Led by Mr Key, a former foreign exchange dealer, National has campaigned hard on a message of change, citing Barack Obama's victory in the US presidential election as a mandate for fresh approaches to tackle the global financial crisis.
Labour have campaigned on trust and the leadership of veteran Ms Clark, the country's first elected female leader, who is still widely respected despite her party's slump in the polls.
A high turnout was predicted, with queues reported in many cities and some booths running out of voting papers as fine weather brought out voters, while advance and absentee votes were up nearly a third on the 2005 election.
Under New Zealand's proportional voting system, a party must win 5 per cent of the nationwide vote or a local electorate seat to be represented in parliament.
Agencies