Prebble resigns from Act leadership

12.45pm

UPDATE - Act members will vote on who their new leader should be over the next few months.

Mr Prebble, who resigned today, said he would remain leader until the results of the "primary" were known.

Rodney Hide told reporters he would be putting his name forward.

Earlier, Mr Prebble told a press conference that his resignation was the best thing for the party, which has been struggling in the polls.

Just an hour before his announcement, Act MPs collectively said there was no threat to his leadership.

And yesterday Prebble dismissed speculation he was about to resign, telling NZPA the leadership issue was not being discussed at today's caucus meeting.

"No one has raised it with me in the last four weeks," he said.

Despite his confidence there had been rumours of his demise for many weeks.

ACT has been languishing in the polls for some months, and in Sunday's latest One News/Colmar Brunton poll rated at 2 per cent. With no electorate MP, ACT needs to attract 5 per cent support in an election for its 8 MPs to retain their seats in Parliament.

ACT won nine seats in 2002 election, taking 7.14 per cent of the party vote.

There was no immediate word on who would replace him.

Finance spokesman Rodney Hide has long touted himself as leadership material.

Former Labour cabinet minister Ken Shirley, deputy leader of the party, is less of a populist than Mr Hide, but is seen as more in line with its core principles.

"I strongly believe this Government is better for having ACT there," Mr Prebble said.

Mr Prebble, the only leader ACT has had in Parliament, appeared calm and dignified and under control as he stood aside.

One of his staff was weeping openly.

Mr Prebble called the press conference at short notice while a party caucus was held this morning.

Mr Prebble took the Wellington Central seat for ACT at the 1996 election and has led ACT since then.

He was a senior member of the Lange/Douglas Labour administration and was well known for his support of free market economics.

He left Labour following the left wing of the party regaining control after the fall of finance minister Roger Douglas.

One of the strongest performers in Parliament, Mr Prebble has had questions hanging over his leadership since the last election.

During that campaign he fell ill with pneumonia and since then some have questioned how long Mr Prebble would continue in the leader's role.

ACT Party founder Sir Roger Douglas told NZPA that Mr Prebble "did a fantastic job for the party, and I hope that his contribution hasn't ended".

A spokesman for National Leader Don Brash said that Mr Prebble's resignation was an internal party matter and had no further comment at this stage.

Sir Roger hoped that Mr Prebble would stay with the party after the 2005 election.

"It would be fantastic if he did, because he has a big part to play in a centre right Government."

Sir Roger said there was never a right time to change the leader.

"It's always a matter of judgment in these things, and Richard has obviously thought carefully about it and decided this is the time for him to move on."

Sir Roger would not say whether he had a preference for the new leader.

Sir Roger said ACT now had to determine a strategy to get 7 to 15 per cent of the party vote at the 2005 election.

It won 7.14 per cent of the vote in 2002.

National grabbed ACT voters when Dr Brash targeted preferential treatment for Maori in his Orewa speech earlier this year.

"What policies do they put in place to differentiate them from the other political parties, and make it important enough for New Zealanders to vote for them, rather than anyone else?" asked Sir Roger.

- NZPA