Immigration Minister Lianne Dalziel has been forced to resign all her portfolios. File picture / Fotopress

Immigration Minister Lianne Dalziel has been forced to resign all her portfolios. File picture / Fotopress

5.45pm - By SCOTT MacLEOD

UPDATE - Immigration Minister Lianne Dalziel resigned from all of her Government portfolios tonight amid claims she lied about a letter which came into the possession of TV3.

At a 5.15pm press conference in Auckland, Prime Minister Helen Clark said she had received the resignation of Lianne Dalziel and "I have advised the Governor General to accept it".

Helen Clark said her attention was drawn to an NZPA report that suggested that Ms Dalziel had been specifically asked how TV3 had obtained the lawyer's notes.

Ms Dalziel had denied an allegation about passing on the letter.

The prime minister said that after seeing the NZPA report she discussed the matter further with Ms Dalziel.

"She has advised me that she does not clearly recall the conversation with the NZPA reporter."

But Helen Clark said that, nevertheless, Ms Dalziel had come to the conclusion that she would face ongoing speculation which can only be damaging to the Government. On that basis, Lianne Dalziel had offered her resignation.

Acting ministers had taken over Lianne Dalziel's portfolios.

The prime minister said she appointed Paul Swain to the commerce portfolio, Rick Barker to immigration and Margaret Wilson as the minister responsible for the Law Commission.

Helen Clark said "I have accepted the resignation with great sadness because I know just how much Lianne Dalziel has poured into her job these past four years and two months."

Helen Clark said she had also asked State Services Commissioner Michael Wintringham to find out whether any officials were involved in circulating the letter.

The investigation was also to find out how the letter came into Helen Clark's electoral office.

Lianne Dalziel had given interviews on Wednesday and Thursday admitting she had given misleading answers to Morning Report in an earlier interview on Wednesday.

Helen Clark said she saw Ms Dalziel on Thursday morning amid her busy schedule dealing with flood damage and other commitments.

"I asked her then what she thought should happen. She said that she did not think that she should resign, but she would if she had lost my confidence. Yesterday that was a fine line to call."