New Zealand PM Key wins second term

New Zealand's Prime Minister John Key was elected to a second term in office yesterday, following a hard-fought campaign focused on high levels of public debt.

With most of the votes counted, his National Party was projected to win 60 of the 121 seats in parliament. The opposition Labour Party, which had sought to balance books through increased taxes and a raised retirement age, lost seats.

Phil Goff, Labour's leader, said the party was "bloodied, but not defeated".