By Dan Satherley / Duncan Garner / NZPA
Rodney Hide has confirmed he will be standing down as the leader of the ACT Party as of this Saturday.
His resignation will see Don Brash become the new leader of the party after days of mounting pressure and speculation.
He needed ACT list MP Hilary Calvert to side with him, which she did that last night.
Mr Hide will stay on as a minister in the National-led Government. It's understood National is comfortable with that, but Dr Brash will be consulted as the new ACT leader as to whether he wants Mr Hide to stay on as a minister until the election in November.
3news.co.nz will be streaming the announcement at midday, from the Auckland suburb of Newmarket, live.
Dr Brash has made it clear over the last few days he has every intention of rolling Mr Hide as ACT leader.
The former National leader wanted to take the party's top spot to save it from what he describes as "political oblivion".
But before could do that, he needed to get majority support from the party's five MPs. He had a meeting with Ms Calvert and Sir Roger Douglas in Auckland yesterday.
"I've been increasingly worried, over a number of months quite frankly, about where the country is going," he told Firstline's Rachel Smalley this morning.
"The Government's spending money, borrowing $300 million a week – that worries me greatly.
"The Government pledged to narrow the income gap between New Zealand and Australia – there's been no progress on that at all.
"They went into the election, indeed the last three elections, pledging one for all New Zealanders – and frankly we're not delivering that either."
He didn't deny that getting back into Parliament would be good for his ego – "Not being a psychoanalyst, I can't prove that the ego is not involved" – but said he hoped it was about helping the country.
"I've been very comfortable outside of Parliament for the last three or four years… it's more than just ego."
In order for the 70-year-old Dr Brash to take over ACT, he needed to roll incumbent leader Mr Hide, whom he saw as an obstacle to the party getting back into Parliament.
As ACT failed to reach the 5 percent threshold at the last election, the party only made it back in because Mr Hide won the seat of Epsom, assisted by National, who gave him their implicit approval.
So why is Dr Brash – who only a couple of elections ago ran as leader of the National Party – now taking over ACT, who sit to the right of National on the political spectrum?
"The policies of the ACT Party are not very different to what the National Party has stood for traditionally, and indeed the policies that I ran with in 2005 and won 39 percent of the vote with," says Dr Brash.
"So I don't think it's the policies that are the problem. I think for some good reasons and some for bad, Rodney's reputation has been tarnished. He's been a personal friend of mine for 15 years, and I beg him no personal animosity at all, but his reputation has been tarnished and with it the reputation of the ACT Party."
Much speculation has been made over which ACT MPs were sticking with Mr Hide, and which were backing Dr Brash.
"I'm not counting any chickens at all," Dr Brash said this morning.
Sir Roger and Heather Roy were always in Dr Brash's camp, but as of last night he had yet to convince deputy leader John Boscawen, who publicly backed Mr Hide.
The balance of power appear rested with list MP Ms Calvert, who became an MP last year when David Garrett was forced to resign after his dead baby identity-stealing scandal. She spoke to Dr Brash yesterday, and today changed her tune.
"We should be polling in double figures, and what I'm saying to her is look, you can be part of that, and part of helping New Zealand out of its present predicament," says Dr Brash.
"We had a constructive conversation, she asked me very sensible questions. I pointed out to her that if she wasn't sure about what she should do, she should wait for the market research that I've commissioned next week."
Dr Brash, whilst slamming the Government, is a realist when it comes to what influence ACT could have, even under his leadership. Without a coalition with National, ACT doesn't really have a chance of having an influence over the Government's economic direction.
"The first point to make clear is that the ACT Party pledged to provide confidence and supply to the National Party through to the next election, and I wouldn't see that changing at all… but we will certainly be campaigning on issues that are vital to the country's future."
He said taking over ACT would be easier than starting his own party, because it already has a constitution, registration and membership, and more importantly, a "set of policies with which I basically agree".
Last night Dr Brash said it would be best if Mr Hide stood down if rolled, and today said it would be "easiest" if Mr Hide simply resigned if it was obvious Dr Brash had the support of the ACT caucus.
"By midday would be great," Dr Brash joked, "but listen, I don't want to rush this decision. It's too important it's not rushed."
Dr Brash said there was merit in making a quick change, but that he was happy to wait until market research about his chances as leader came back next week.
"I've said to people who are dubious or not sure how to jump on this one, 'Look, I'm very happy to wait for that research to be finished,'" he said.
"I believe it was clear some weeks ago, indeed some months ago, that a party led by Rodney would not survive, whether a party led by me will, I don't know, but certainly in the last few days I've had overwhelming support."
Dr Brash said he had not heard back from Mr Hide since he left a message for him a few days ago.
Prime Minister John Key has refused to speculate on the situation, although he said yesterday he could not see any reason why Mr Hide would not be able to keep his ministerial roles if Dr Brash took over as leader.
3 News / NZPA