Hobbs 'staying with Labour'

The Government said Wellington Central MP Marian Hobbs is not quitting Labour, after reports she threatened to resign last week.

The Independent Financial Review reported today that Ms Hobbs last week told Prime Minister Helen Clark she intended resigning her seat after Wellington's Karori Bird Sanctuary missed out on a multi-million dollar funding grant.

Helen Clark talked her out of the move, which would have meant a potentially perilous byelection, which if lost would have made it more difficult for the Government to pass new legislation.

Ms Hobbs today refused to comment on what she described as "rumours", but NZPA said it understood the report was correct.

A spokesman for Helen Clark would not comment on the matter other than to say: "Marian Hobbs is a loyal and capable member of the Labour caucus and we expect that to continue."

- NZPA