KEY POINTS:
Frantic lobbying is under way in the National Party as John Key prepares to reallocate portfolios and positions after negotiating an uncontested vote for the leadership and deputy leadership.
Mr Key convinced Gerry Brownlee at the weekend to drop his bid to retain the deputy's job, which with
the finance portfolio will go to Bill English.
Brownlee supporters maintained he had more caucus support than Mr English but Mr Key believed the primary goal was to unite the factions in caucus, which could best be achieved by putting Mr English in the job.
Phones were ringing hot over the weekend and on Saturday Mr Brownlee pledged to fight Mr English for the job. However, by yesterday he had changed his mind, saying he would not contest it.
The dual job of deputy leader and finance spokesman will undeniably make Mr English National's second most important man.
Mr Key stressed Mr Brownlee would continue to play a critical role and was expected to appoint him chairman of the party's strategy committee, until now run by Dr Brash's chief of staff, Wayne Eagleson. "I'll be talking to Gerry about assuming new responsibilities and running the strategy for National going forward."
Mr Brownlee is believed to have secured the No 3 slot on the front bench - effectively swapping with Mr English - and will remain shadow leader of the House. He's long had a desire to take the energy portfolio and relinquish Maori affairs - both of which Mr Key is set to approve.
The future of outgoing leader Don Brash remains unclear, although early speculation that he could be given Mr English's education portfolio was downplayed yesterday.
It is believed Mr Key has yet to decide whether Dr Brash will remain on the front bench, although it's considered unlikely.
Sources said yesterday that a "gentle reshuffle of personnel and portfolios" was expected and might be unveiled by Thursday - ensuring MPs will be lobbying either to retain or improve their positions.
Former Maori affairs minister Tau Henare is considered a likely contender for his old portfolio.
The Key/English pairing will symbolise a fresh beginning, enabling the party to claim factions have been unified. It will also ensure Mr English does not work to undermine Mr Key.
Mr Key said Mr English's announcement that he would not contest the leadership and Mr Brownlee's, that he would pull his hat out of the ring for the deputy leadership, were decisions they had reached themselves. But asked if he had expressed a preference for either man, it was evident he had made it clear he favoured Mr English.
"I indicated it was important to knit those teams together, that there were a couple of factions that we needed to knit together ... to achieve the outcome that we wanted."
Mr Brownlee also conceded as much, saying, "John Key felt it was the best solution to ensure there was caucus unity".
Mr Brownlee and several supporters did the numbers for the deputy's job over the weekend and a member of the group said he had majority caucus support.
In addition, it is believed he and Mr Key had an unofficial understanding that he would get the deputy's job.
Mr Key's decision is bound to have ruffled Mr Brownlee's feathers, but he wouldn't concede he was disappointed yesterday. "Personal disappointment here is of no consequence. What is of consequence is the overwhelming desire of the National Party caucus to win in 2008," he said.
"Our view is that that [the deputy's job] is just not worth having a scrap over. We were starting to get a focus on second prize. In this thing, the only prize is to be in government."
Locked in discussions at Mr Key's Parnell home - with Simon Power and Murray McCully - Mr English did not return Herald calls yesterday, but issued a short statement acknowledging "Mr Brownlee's generous statement" that he was withdrawing from the deputy contest.
Mr Key said he would "absolutely be able" to work with Mr English, despite jousting with him for the leadership. "I think we've had a strong and complementary relationship in my time in Parliament. I think we provide as a leadership a very strong ticket."
The party's first uncontested leadership election for some time signalled National had "learnt from previous mistakes. We are actively demonstrating that we can manage ourselves and our own internal politics and we hope that will help earn us the right to manage the country."
Mr Key will give a "personal positioning" speech tomorrow "which won't be so much about policy but about the values I hold, the flavour of the way I look at things".
He wanted "a positive, relevant agenda which addresses the issues that New Zealanders really care about and I think ... it'll be very much an approach focused on winning the hearts and minds of the country".
- Additional reporting Jarrod Booker