Rodney Hide's Act Party is in danger of unravelling completely as shamed MP David Garrett yesterday resigned from the party and went to ground.
But Prime Minister John Key continues to back his stricken political allies while calling on Mr Garrett to relinquish his seat in Parliament.
Mr Hide yesterday cut Mr Garrett loose, telling his hard-line law and order spokesman he no longer had his support after learning of questions regarding the veracity of an affidavit Mr Garrett submitted in his defence of identity theft charges in 2005.
While Mr Hide continued to defend his choice of Mr Garrett as a candidate because the passport incident was 26 years old and Mr Garrett had been discharged without conviction, he indicated he was not satisfied that Mr Garrett had been truthful to the court in securing that discharge and name suppression.
The document had been a factor in the judge coming to the conclusion Mr Garrett had led "a blameless life" when in fact he had been convicted of assault in Tonga three years earlier.
"I believe that what the judge took from the statement was not the full truth," Mr Hide said.
Within hours Mr Garrett told media he had resigned from the party and would take two weeks' leave to consider whether he would continue as an independent MP or resign from Parliament.
But he conceded his political career was almost certainly over.
He was last seen boarding a flight to Christchurch.
Mr Key said Mr Garrett should think very seriously about his future given the public reaction to his fake passport scam.
"The New Zealand public has made it pretty clear that they don't want him in Parliament and I think the best thing David Garrett can do is to reflect on that and probably do the honourable thing."
He said if Mr Garrett chose to stay on as an independent, the National Party would refuse to make a deal or form any kind of relationship with him.
However, Mr Hide continued to have his full support and he was happy with how the matter was handled.
"He has shown very good judgment," Mr Key said.
But Mr Hide's judgment came under fire yesterday after he acknowledged he supported Mr Garrett as a candidate even after learning of details of his passport scam, including the use of a dead child's identity.
But Labour leader Phil Goff said Act and Mr Hide "are now thoroughly discredited" and should be removed from ministerial positions within the Government. The week's incidents were likely to finish Act as a political force, he said.
Should Mr Garrett, as is now expected, resign as an MP, Dunedin businesswoman Hilary Calvert, who is next on the Act Party list, would come into Parliament.
Mr Hide's continued defence of Mr Garrett until yesterday has been linked to Mr Garrett's support for Mr Hide's leadership in a caucus believed to be divided between the Hide camp - including deputy leader John Boscawen - on one side and party founder Sir Roger Douglas and former deputy leader Heather Roy on the other.
Ms Calvert is considered to be an independent figure who may not take sides with either faction.
Yesterday she said she supported Mr Hide, and thought Act would land on its feet following the Garrett affair.
"I think the party is much bigger than any of the individuals in it," she said.
An Act Party source believed Act required a "game changer" in the form of a credible high-profile new MP to ensure its survival.
While former National Party leader Don Brash's name has come up in speculation, Mr Brash last night said it was highly unlikely he would stand for the party.
- ADDITIONAL REPORTING: NZPA
Disgraced MP's exit casts dark cloud over Act
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