New Zealand goes to polls

Polling booths were set to close at 7 p.m. on Saturday (0900 UTC), after more than 3 million registered voters had the opportunity to cast their ballots.

Turnout at New Zealand elections are generally high - last time being about 75 percent - although it was thought that heavy rain across much of the country might lower participation this time around.

Early indications were that Key would succeed in his effort to secure a third term - with a projected 48 percent. However, New Zealand's German-style mixed-member proportional voting system has proved notoriously difficult to predict in past elections.

An economy growing at a 4 percent clip, falling unemployment and projected budget surpluses this financial year - following years of deficits - could be in the National Party's favor.

But Key could find his party in trouble if opposition parties are able to garner more than half of the seats in parliament and form a united coalition against it.

Labour Party leader David Cunliffe, whose party has pledged to build tens of thousands of inexpensive homes for first-time buyers is Key's closest rival.

Tough political jigsaw for opposition

Labour - polling at about 20 percent - could team up with the Green Party - which is predicted to get 13 percent support, but Cunliffe would also need to align himself with the rightist New Zealand First Party, not a natural political bedfellow.

New Zealand First leader Winston Peters has been in the position of kingmaker before and in 1996 toyed with the two main parties for eight weeks before finally siding with the National Party. In 2005, he was foreign minister for a Labor-led government.

Key has been in power since an election in 2008. During that times he has called Peters untrustworthy, but has not ruled out giving him a ministerial post this time around if necessary.

Also throwing his hat in the ring is Internet mogul Kim Dotcom, who has accused Key of conspiring with the US to arrange his arrest on online piracy charges.

The ruling party's campaign was marked by a scandal after investigative journalist Nicky Hager published a book "Dirty Politics" which documented alleged underhand tactics involving government ministers. The allegations, however, do not appear to have hurt Key's poll rating too badly.

Key's party also found itself in hot water for allegedly illegally using the Eminem track "Lose Yourself" in a campaign advertisement.

rc/jm (AP, AFP, dpa, Reuters)