By James Murray, Dan Satherley and NZPA
Chris Carter has been revealed as the sender of an anonymous letter to the press gallery calling for a leadership challenge within the Labour Party.
This afternoon leader Phil Goff announced Mr Carter's expelsion from the Labour Party caucus.
Mr Goff says he knew the controversial MP was behind the letter criticising his leadership, because he recognised his writing on the envelope.
Mr Carter had also admitted sending the letter, which had been sent through the internal parliamentary service.
Read a copy of the letter here, and watch Mr Goff's full press conference here.
An urgent Labour caucus meeting was held this afternoon and a unanimous decision was made to eject Mr Carter over the letter, which claimed a plot to overthrow Mr Goff.
The single-page letter said union-based MPs would challenge Mr Goff on Tuesday about the Government's plan to allow workers to cash in their fourth week of holiday. It said MPs disagreed with a stance Mr Goff took on the issue.
In a face-to-face confrontation with Mr Goff the errant MP admitted being the culprit.
"As of now Mr Carter is no longer a member of the Labour Party caucus," Mr Goff told reporters.
"At first he denied it and, when pushed admitted it… Chris Carter has no future in the Labour Party I lead.''
Mr Carter was supposed to be working his way back up the ranks after being demoted to the back benches. But Mr Goff said there were now no more chances. "Chris Carter's future in the Labour caucus has come to an end.''
The letter claimed there was growing discontent within the Labour caucus and that David Cunliffe would make a move against Mr Goff before the election next year.
It also claimed that Manurewa MP George Hawkins was threatening a by-election in his electorate due to a challenge from a member of the Engineering, Printing and Manufacturing Union for selection in the seat in 2011.
The New Zealand Council of the Labour Party would shortly consider his membership of the Labour Party itself.
If he is expelled from Labour he can stay in Parliament as the member for Te Atatu but if he quits altogether a by-election will be needed.
Mr Goff said the letter's content was untrue and designed to damage his party.
"It was stupid it was disloyal. His actions... were calculated to damage the party and the leadership. That is unacceptable to me and my caucus."
The issue comes soon after Mr Carter was demoted for extravagant spending while he was a minister and Mr Goff said he had offered the MP a second chance.
"Today there are no more chances."
The Labour Party council would meet on August 7 and decide if he could remember a party member. Mr Goff expected nominations for the electorate to be reopened after that.
Mr Carter could not be reached for comment.
NZPA