Tamihere quits Cabinet but vows to return

3.10pm

John Tamihere resigned from Cabinet today, vowing to return when he clears his name.

In a joint press conference with Prime Minister Helen Clark, Mr Tamihere said he did not want to remain out of Parliament while allegations swirled around him.

"I can no longer sit and wait in Auckland on a Cabinet salary," Mr Tamihere said.

Mr Tamihere is under investigation over whether he paid tax on a $195,000 payout from the Waipareira Trust, which he headed before he came to Parliament in 1999.

Mr Tamihere also took the payment after he publicly said he would not accept a golden handshake.

The Serious Fraud Office is also investigating a number of transactions at the trust.

Mr Tamihere said he was grateful Helen Clark was keeping his cabinet positions open until after investigations by Douglas White QC into his affairs were complete.

Helen Clark said Mr Tamihere had done the honourable thing in resigning, and the way was open for him to return.

'I have not asked for this resignation," Helen Clark said.

"However, as John has said it is not in his nature to sit and wait."

Mr Tamihere had huge potential and energy.

"I have accepted the resignation with some regret. I look forward to him clearing his name as he believes he will be able to do and be in a position to return."

Helen Clark said now the Serious Fraud Office were involved it may take longer for Mr Tamihere to clear his name and she could see why he would not want to wait that long.

Mr Tamihere said he needed to get back into Parliament to defend himself and to take part in the foreshore and seabed bill's passage into law.

" I'm a feisty bloke and I want to come back down to Parliament and get in the ring.

"I'm hoping that Parliament will accord me the right to clear myself."

Mr Tamihere said he regretted not advising the prime minister that he had accepted an ex gratia payment.

He had not considered resigning from Parliament as he had the confidence of his constituents and the confidence of his prime minister.

Helen Clark said no apology was sought from him or was necessary.

However, she still suspended her judgment on whether it was acceptable for Mr Tamihere to take a payment he had indicated he would not take.

Act leader Rodney Hide, who has led the charge over the pay-out, said Mr Tamihere's resignation was "political expedience over principle".

"John Tamihere didn't volunteer to walk the plank, he was pushed by the prime minister," he told NZPA.

Helen Clark had repeatedly told Parliament yesterday that she would follow due process but less than 24 hours later Mr Tamihere was gone.

"John Tamihere's golden koha was just getting too hot to handle," Mr Hide said.

Maori Affairs Minister Parekura Horomia, and Maori caucus members Mahara Okeroa, Mita Ririnui and Dover Samuels were on hand to lend Mr Tamihere support.

Helen Clark said the ministers currently acting in Mr Tamihere's previous portfolio areas would continue with those responsibilities in the meantime.

"I have decided that no new appointments will be made to Cabinet at this time."

- NZPA