New Zealand election scheduled for Nov. 7 with the costs of living and housing the top issue

Prime Minister Christopher Luxon announced on Wednesday that New Zealand will hold a national election on November 7.

Luxon, leader of the centre-right government, will seek a second term in office and the election will likely be a vote on whether his promises to improve the economy after the Covid-19 pandemic have enough appeal to convince voters still struggling with living and housing costs. The main centre-left opposition Labor Party, led by Chris Hipkins, has regained support since its poor performance in the previous 2023 election and analysts are predicting a tight race.

Elections in New Zealand are held every three years and the exact date is determined by the government. Voters choose which party they would prefer to see in government, and they also choose a local candidate to represent their constituency in Parliament.

The country of 5 million people has a unicameral parliament, which means governments are powerful decision-makers on how the country runs. The National Party and Labor often have to form coalitions with smaller parties to gain a majority in parliament, giving smaller parties an unusual dominance led by the larger party.

Economy and living costs are central

Luxon, who announced the election date at a meeting of his party’s MPs in the city of Christchurch on Wednesday, underlined his party’s track record of working to rebuild a post-pandemic economy. Days earlier, speaking to a business audience in Auckland on Monday, he acknowledged that turning around the country’s fortunes would not be easy and that many New Zealanders had endured “two years of grueling grinding”.

The economy contracted a further 0.5 percentage point in the last measured 12 months, and migration to neighboring, richer Australia reached record levels at times during Luxon’s tenure. On Monday Luxon blamed the former Labour-led government for the country’s woes and said it had “inherited a mess”.

Analysts have said that with inflation trending downward and business confidence starting to improve, Luxon will hope the months leading up to this year’s election will be long enough to convince New Zealanders that the economic comeback it has promised in 2023 is starting to take root.

Hipkins, his main rival for governing the country, dismissed Luxon’s remarks on Monday, calling them “administrative nonsense.” The opposition leader added that Luxon had failed to deliver on political promises, including making housing more affordable in one of the world’s hottest markets and ensuring everyone has access to public health services.

Covering the costs of the country’s problematic infrastructure and how to finance pensions will also be among the main economic issues. Luxon condemned Labour’s approach as one based on racking up the national debt, while Hipkins said on Monday National was wasting money on unaffordable tax cuts.

Two men named Christopher bid to become prime minister

An unusual quirk of the election is that, as in 2023, the premiership will once again be contested by two men named Christopher. Luxon, 55, is still relatively new to politics and will make a meteoric rise to National party leadership in 2021 after entering parliament as a constituency MP in the 2020 election.

The millionaire former business executive was chairman of national carrier Air New Zealand before turning to politics and previously worked as an executive at Unilever while living in the United States. Luxon has promised to bring managerial experience, but his critics highlight his political inexperience and say his wealth means he is out of touch with ordinary New Zealanders.

Opposition leader Hipkins entered Parliament in 2008 and held key posts in the previous Labor government, including as secretary of health and education. The 47-year-old, who presents himself as a modest man from an ordinary background, briefly became prime minister in 2023 when incumbent leader Jacinda Ardern resigned suddenly due to fatigue.

Labor was already weak in the polls and Hipkins was unable to turn around the party’s fortunes; A dismal result paved the way for Luxon’s centre-right government. Hipkins’ critics on the left criticize her for being too reserved, while those on the right frequently try to remind voters of her role in Ardern’s government as strict Covid-19 lockdowns have eroded public trust in some parts of the country.

Small parties likely to have big impact

Under New Zealand’s proportional voting system, political parties are often required to form alliances to govern. This makes the votes won by small parties important for the outcome. Following the election, the major party with the most votes begins negotiations with the traditional ruling parties; Minor party leaders sometimes obtain major policy concessions to secure their support.

Luxon’s government was formed by the libertarian ACT party and the populist New Zealand First. New Zealand’s First Leader and current foreign minister, Winston Peters, is New Zealand’s longest-serving current MP and has previously led both National and Labor governments; but he has animosity towards Labor and Hipkins after their last term in government together.

On the left, Hipkins will seek support from the left-leaning Green party and Te Pāti Māori, a small party contesting seats reserved for Indigenous MPs. The Maori party had also previously sided with both the National and Labor governments but has recently backed Labor.

It is rare for New Zealand governments to survive only one term. The last time a government was ousted after a three-year cycle was in 1975.

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McGuirk reported from Melbourne, Australia.