Mr Osborne said on Saturday night that he was probably more inspired, after losing the by-election, to make a difference to Northland than he had been before the votes were counted.
It was likely that he would return to his job as asset manager with the Far North District Council in the meantime.
National's defeat was comprehensive in a seat won last year with 18,269 votes, however. Mr Peters won with 15,359 votes, a majority of 4012 over Mr Osborne (11,347), with Labour's Willow-Jean Prime third (1315). Only one of the nine remaining candidates, Joe Carr (Focus New Zealand), who urged his supporters to vote NZ First, made three figures.
An estimated 1593 special votes have yet to be counted, the final result being due on Wednesday next week (April 8). The voter turnout was 65.6 per cent.
The collapse of the Labour vote, down from 8969 in last year's general election, and the absence of a Green candidate (which garnered 3969 votes last year) may largely explain Mr Peters' success, and his taking of the majority of booths. National could not even hold relatively affluent, politically conservative centres such as Mangawhai and Kerikeri, where Mr Osborne and a roll-call of government ministers had campaigned hard.
National held usually reliable Wellsford by a margin of just 201 votes to 194, the only other major booths going its way being Paihia (175:158), Pukenui (127:125) and Hukerenui (96:87). Waiharara, Peria, Umawera and Maromaku also remained loyal. NZ First won in Kerikeri (Kerikeri Primary 381:297, Kingston House 355:302, Riverview School 257:222).
Some of Mr Peters' biggest wins as a percentage of votes were in the South Hokianga towns of Omapere (122:34) and Rawene (126:20). He also dominated in economically struggling towns such as Kaikohe (Kaikohe East 135:54, Kaikohe Intermediate 73:44), Kaitaia (153:95) and Kaeo (198:97), and in more prosperous areas such as Russell (264:210) and Waipapa (358:305). He won all the larger towns in the Kaipara (Dargaville 257:168, Ruawai 149:135, Maungaturoto 235:140 and Paparoa 191:157).
Mr Osborne lost even in his home town of Taipa (170:257) and nearby Mangonui (231:327).
Labour's Willow-Jean Prime won only 12 votes in her home town of Moerewa, the same number as Mr Osborne. In Whananaki, where Mr Peters grew up, NZ First won 40 votes to National's 26.
OutstandingPrime Minister John Key said he was disappointed that National lost the by-election, but congratulated Mr Peters on winning it.
"Mark Osborne is an outstanding candidate, and he would've been a strong advocate for Northland in the National-led government," Mr Key said.
"By-elections are always tough, and it was a unique set of circumstances that occurred in Northland that led to this result. However, Mr Peters ran a good campaign and I congratulate him on his win." Northland had been struggling for decades, and although progress was being made, Northlanders had made it clear that they were not satisfied with the rate of progress.
"We understand that," he added, "and I would like to assure Northlanders that we're going to continue to work hard to deliver more progress. We plan to work hard to win the seat back in the general election in two and a half years."
Green Party co-leader Metiria Turei saw the result as proof that the tide had turned on a government that was increasingly out of touch, however.
"This is a deeply embarrassing loss for National in a traditionally safe seat. The loss of Northland shows how out of touch the National government has become with ordinary New Zealanders. That John Key thought his bridge and broadband bribes would work in Northland just shows how out of touch he is with ordinary Kiwis.
"Hungry kids can't eat bridges."
