Act party elects Hide new leader

5.25pm

ACT has elected high-profile perk-buster Rodney Hide their leader.

Mr Hide, 47, will replace Richard Prebble, the only leader the party has had since entering Parliament in 1996.

Stephen Franks, deputy leader Ken Shirley and Muriel Newman also ran for leadership of a party which has only eight MPs.

Mr Hide came out on top of a primary vote of party members.

He was then was voted leader by caucus after candidates were grilled individually in "job interviews".

An MP since 1996, Mr Hide faces the difficult task of reviving ACT's fortunes in time for the next election.

ACT has been polling well below the 5 per cent threshold needed to win seats in Parliament without an electorate seat.

Mr Hide today pledged to dispense with his perk-busting image.

He said his aim was to make it clear voters understood what ACT stood for, and to offer them an alternative to the Labour-led Government.

He hitched the ACT wagon to National Party leader Don Brash, whose attack on preferential treatment for Maori this year sent that party to the top of the polls.

"ACT must be in the next government to ensure that Don Brash doesn't have to compromise," Mr Hide told reporters.

"ACT's success will ensure that Don Brash won't be held hostage by (New Zealand First leader) Winston Peters, or (United Future leader) Peter Dunne."

Mr Hide reiterated ACT's commitment to lower rates of personal tax, something National has put on the political backburner.

If ACT was an ally of a National-led Government, it would push Dr Brash to lower personal tax, Mr Hide said.

"ACT is the only party that will ensure that no hard-working New Zealander will have to pay more than 20 cents in the dollar tax.

"The National Party has signed up to (Prime Minister) Helen Clark's top rate of tax of 39 cents. We never will."

ACT used a voting system in which members ranked the four contenders, with the bottom one at each ballot dropping out.

Votes given to those eliminated were reallocated to members' next preference, until one candidate reached 50 per cent.

It was a tight fought battle, with Mr Hide taking until the third ballot to top 50 per cent, securing 53.64 per cent of the vote.

Mr Franks had 46.36 per cent of the vote on the third ballot, party president Catherine Judd told reporters.

Full voting details were not disclosed.

Social welfare reform campaigner Dr Newman was elected deputy leader.

Mr Shirley was elected whip, while Mr Franks was named caucus member to the party board.

Mr Prebble indicated he would stay in Parliament until the new leadership team had settled in.

When he resigns, his seat will be taken by Kenneth Wang, the next candidate on the party list.

- NZPA