The National Party says Environment Minister David Benson-Pope's office was involved in a "politically motivated sacking" and it wants Prime Minister Helen Clark to say whether she still has confidence in him.
Miss Clark is on her way home from Indonesia, and she is sure to face questionsin Parliament next week about the conflict of interest case involving the partner of National Party leader John Key's chief press secretary, Kevin Taylor.
Madeleine Setchell was hired by Mr Benson-Pope's ministry as its communications manager, but the job only lasted three days.
A report released yesterday by the State Services Commission said Mr Benson-Pope had no role in the matter, but it revealed that a staff member in his office called the ministry and raised questions about Ms Setchell's relationship with Mr Taylor.
That led to ministry chief executive Hugh Logan apparently finding out about it for the first time, although Ms Setchell had revealed the relationship when she applied for the job.
Mr Logan offered her an alternative position, which she declined.
Mr Benson-Pope was questioned by the media about the issue earlier this week, and said he did not know any of the details.
But Mr Key said last night the report showed he must have known about it.
"No Beehive staffer would act on an issue as serious as this without the minister's say so," he said.
"Mr Benson-Pope has been dancing on the head of a pin. His honesty is again under scrutiny and Helen Clark must say whether she intends to tolerate this new low standard."
He said Miss Clark had invested "considerable capital" in protecting Mr Benson-Pope.
"She now needs to say whether that support continues despite his attempts to mislead the media and the public this week."
Miss Clark stood by Mr Benson-Pope in the past when he was embroiled in controversies.
He was alleged to have physically abused students when he was a teacher, and those allegations were investigated by the police who did not lay any charges.
He also told Parliament that no complaints had been laid against him during his teaching career, which turned out to be incorrect.
