PM dampens speculation about Cullen

Trevor Mallard (left) and Phil Goff.

Prime Minister Helen Clark intends to encourage Finance Minister Michael Cullen to stay in the job as long as possible, but has not ruled out the possibility he may stand down at the next election.

Speculation that Dr Cullen will step down - either from his finance role or from Parliament - has intensified in the past two days after Helen Clark told the Listener she didn't know if he would continue to deliver the Budgets for the rest of the term.

But yesterday she was working to dampen down the speculation, saying Dr Cullen had not given her any indication he was thinking of stepping down or retiring.

"I've been a friend and colleague of Michael Cullen's going back to the early 1970s. He has served me extremely well as Deputy Prime Minister and Finance Minister and if I can encourage him to stay as long as possible, I will."

But she said she had not asked Dr Cullen for a categorical answer about his future.

"I have been quite up front about my intentions for the next election - I have every intention of leading Labour into the next election. Other people haven't made such statements."

Dr Cullen, 61, continued to say little on the matter and declined interviews. Through a spokesman he said the Prime Minister was happy for him to carry on as Finance Minister and he was also happy to carry on.

As well as being Finance Minister and Deputy Prime Minister, Dr Cullen is also Tertiary Education Minister, Leader of the House and Attorney-General.

There have been predictions that Dr Cullen will become Speaker of the House.

The possibility of his stepping down as Finance Minister has raised the obvious question of who will take over. The two most likely candidates are Associate Finance Ministers Trevor Mallard and Phil Goff.

Mr Mallard, who took over as Economic Development Minister after last year's election, is thought to be the most likely choice.

National Party finance spokesman John Key said he had heard Mr Mallard was "desperate" to be Finance Minister.

"I think he lobbied for the Economic Development role as a way into broadening finance - his ability - to comment on finance. That was a strategic move on his behalf."

Mr Key said he believed it was a "done deal" that Dr Cullen would stand down at the next election.

"I think he played the ace hand in running the Government. I think he probably thinks he has achieved all he can."

THE CONTENDERS

Two senior Labour politicians stand out as replacements for Dr Cullen.

Trevor Mallard

Qualifications:

* BCA, teaching diploma, continuing education diploma.
* Ministerial responsibilities
* Minister of Economic Development.
* Associate Finance Minister since 1999.
* Other relevant experience:
* Running the "razor-gang" to review spending in Government departments and agencies.

Phil Goff

Qualifications:

* Masters degree, first class honours in political studies.
* Ministerial responsibilities
* Minister of Trade and Associate Minister of Finance.