Wellington - After nine years of liberal centre-left government, New Zealand has taken a decided swing to the right in Saturday's general election, but how far remains to be seen.

The conservative National Party's leader and prime minister-elect John Key says the organisation is "arguably more centrist and probably a little more pragmatic" since he became its leader two years ago.

Wellington - New Zealand awoke Sunday to the prospect of a new centre-right government to steer the country out of its worst recession for years after a general election dumped the Labour-led coalition that had ruled since 1999.

Saturday's election produced a sharp jump to the right, leaving prime minister-elect John Key, 47, leader of the conservative National Party, and his free market allies in the ACT party, to govern for the next three years.

Wellington - Sir Roger Douglas, architect of sweeping free market changes that transformed the New Zealand economy two decades ago, was returned to parliament as part of the swing to the right in Saturday's election.

Douglas, now 70, was Finance Minister from 1984-88 in the Labour government that steered such radical reforms that a senior aide to Britain's Conservative Party said even its "Iron Lady" leader Margaret Thatcher would not dare to go so far.

Wellington - New Zealand's conservative National Party swept into power on Saturday in a general election that saw an overwhelming vote for change after nine years of rule by Prime Minister Helen Clark's Labour-led coalition.

Clark, 58, the first Labour leader to win three elections, immediately announced that she would step down from the party's leadership before Christmas, although she will remain in parliament having retained her Auckland seat.

Wellington- New Zealand's new Prime Minister, John Key, 47, who steered his conservative National Party to victory in Saturday's general election, is a classic example of a poor boy made good.

Brought up by his mother in a state house after his alcoholic father died when he was seven, he made a fortune overseas as a foreign currency dealer before returning home to enter parliament a multi-millionaire and its richest member.

Wellington - New Zealand's conservative National Party appeared set to oust the Labour-led coalition that has ruled for the last nine years after Saturday's general election.

With 88 per cent of the party vote counted, Television New Zealand predicted the Nationals and their allies would have 69 seats in the new parliament against 53 for Labour and their Green coalition partners.

But Mike Williams, president of the Labour Party, refused to concede defeat as counting in the main cities continued.

New Zealanders have two votes - one for their local constituency member of parliament and the other for a party. The party vote is the most important in deciding the government.