Prime Minister John Key has said he could work with anyone as leader of Act - apart from Sir Roger Douglas.

Rodney Hide continues to cling to his leadership of embattled Act as a party insider and political opponents called for him to step down.

Act leader Rodney Hide says he will only step down if he considers it is in the party's best interests - and he doesn't.

Former Act MP David Garrett, a lawyer, could face a professional misconduct probe.

The wreckage now masquerading as a political party is beyond restoration, writes political columnist John Armstrong.

Having resigned from the Act Party, the question is now - will David Garrett leave Parliament altogether?

Prime Minister John Key says ACT leader Rodney Hide has shown good judgment and has his full support following the resignation of disgraced MP David Garrett from the party.

The Act Party has been "thoroughly" discredited and its ministerial positions should be removed, Labour leader Phil Goff says. "One thing the public can't stand is absolute hypocrisy."

Act leader Rodney Hide says David Garrett lost his support because he doubted the MP had been truthful in an affidavit he submitted to court over a passport fraud case.

Rodney Hide refused to say how he would respond to David Garrett's public admission of identity theft until this afternoon.

The mother of the 2 year-old whose identity was stolen by David Garrett has described the identity theft as 'stealing from the grave'.

Transport Minister Steven Joyce is the latest MP to admit having criminal convictions.

Act MP David Garrett thought faking his appearance to steal a dead baby's identity to obtain a passport was "a bit of a lark", a court file reveals.

The Prime Minister is refusing to comment on whether Act MP David Garrett should resign from Parliament but has called the use of a dead baby's identity as "bizarre."

NZ Herald readers have reacted strongly to the revelation that Act's hardline law and order spokesman MP David Garrett applied for a passport under the name of a dead child in the 1980s.

Act MP David Garrett has instructed his lawyer to apply for an urgent waiver to have the name suppression order on his passport fraud case lifted.

How much more bizarre can Act's rapid disintegration as a functioning political party get?

His credibility on the line, Rodney Hide has backed MP David Garrett, who admitted stealing a dead baby's identity to obtain a false passport.