multimillionaire former foreign currency trader to head a new conservative government after long-serving left-wing Prime Minister Helen Clark suffered a crushing election defeat. John Key's conservative National Party easily won power in the South Pacific's largest country.
It is known internationally for its pristine environment and as the backdrop to the "Lord of the Rings" movies.
New Zealand's farming export-dependent economy fell into recession early this year, and Key said the worldwide downturn is the most immediate problem for the country.
Key has promised more right-leaning government than Clark's, which for almost a decade made global warming a key policy issue and led international condemnation of scientific whaling.
In a country where the environment is a mainstream political issue, Key has vowed to wind back Clark's greenhouse gas emission trading scheme.
The goal is to protect businesses from financial losses and to reduce red tape that he says will entangle infrastructure projects because of environmental concerns.
Clark wanted New Zealand to become the world's first emissions-neutral country.
Clark, who was seeking a historic fourth term that would have pushed her rule past a dozen years, accepted responsibility for a crushing loss by quitting as Labour's leader.
Key will not need the support of the indigenous Maori Party, which won five seats but will not hold the balance of power.
He said he would reach out to the Maori Party and seek their support in Parliament.
