The Act Party has dumped Heather Roy as its deputy leader and voted first-term MP John Boscawen to the position, following a crisis caucus meeting this morning.
Act leader Rodney Hide informed reporters this afternoon that Mrs Roy had given up her ministerial portfolios.
"At my request the Prime Minister subsequently advised the Governor-General to accept Heather Roy's resignation from ministerial office.
"Heather Roy has made a valuable contribution to the Act Party over many years and I hope that will continue."
Mr Hide said Mr Boscawen would become Minister of Consumer Affairs and also take on Mr Hide's associate commerce portfolio.
Mr Hide said he was taking the associate education portfolio and that Act had dropped the associate defence portfolio "to focus on core Act issues, most notably education.
Mr Hide refused to comment on the caucus meeting this morning, or give a reason why Mrs Roy was dumped as deputy leader other than to say that there had been a successful challenge to the deputy leadership by John Boscawen.
"This is a tough day for the Act Party and it's very very tough on Heather, so I've asked her to reflect on things and take a two week break," Mr Hide said.
"The caucus had a vote and made a decision to elevate John Boscawen to that position ... I'm not prepared to go into the issues discussed at caucus."
Mr Boscawen said he lodged a challenge last Thursday (August 5) for the deputy leadership. The Act constitution requires at least a seven-day notice period for a leadership challenge.
Mr Hide said he had spoken to Prime Minister John Key and the National-Act Confidence and Supply Agreement had been amended to reflect the reshuffle.
Mr Key said Mr Boscawen would be sworn in by the Governor-General tomorrow.
Speculation is rife about moves from Mrs Roy to destabilise Mr Hide's leadership.
At the end of the last year, the Herald revealed that Mrs Roy and party founder and MP Sir Roger Douglas had led an unsuccessful move to oust Mr Hide.
A special caucus meeting was held, but no vote was put.
Act has only five MPs - Mr Hide, Mrs Roy, Sir Roger, Mr Boscawen and David Garrett.
Key on Act
John Key earlier said he did not want to speculate on who he could work with as a minister in the Act caucus until a decision was made.
When asked if he had confidence in Heather Roy as a Minister of the Crown, he said: "Right at the moment, yes."
He again ruled out working with Sir Roger Douglas as a minister, as he had done before the 2008 election.
"His agenda is a far right agenda and that doesn't sit well with a centre-right Government."
John Boscawen replaces Heather Roy as Act deputy
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