Labour grapples with Kiri Allan's resignation, leak claims

"I cannot express the remorse I feel," - Kiri Allan

Tragic circumstances putting a halt to the political career of one of Labour's rising stars, East Coast MP Kiri Allan, was just the start of the party's headaches this week. 

Along with speculation over its tax plans and signs of caucus disunity, leader Chris Hipkins is left with an incredible challenge to refocus Labour on the fast-approaching election. 

Details were murky when the news broke on Morning Report: one person in custody after a two-car crash on Evans Bay Parade in Wellington about 9pm Sunday. Extraordinarily, that person was believed to be Justice Minister Kiri Allan, a detail confirmed by Prime Minister Chris Hipkins shortly after. 

Hipkins said Allan was in extreme emotional distress at the time of the crash.

She was released about 1am, having been charged with careless use of a vehicle and refusing to accompany a police officer; and fined for returning an infringement-level alcohol breath test. Hipkins said her position in Cabinet was no longer tenable - something Allan agreed with, resigning all her portfolios. That afternoon, she confirmed on social media she would not contest the upcoming election including her East Coast electorate seat. 

"For now, it is time to step out of the arena ... to heal myself and chart a new course," she wrote. "To the Prime Minister, I have undermined you and the trust you placed in me to do an important job for New Zealand. I cannot express the remorse I feel. I am so, so sorry."

She had recently been open about her struggles with mental health, posting on social media about taking time off after a relationship break-up. She took further leave during Parliament's two-week recess, pending a discussion with Hipkins about a series of claims - strenuously denied - of poor working relationships with staff. 

Read more: 

• Justice Minister Kiri Allan resigns after being charged over car crash
• Allan won't stand in 2023 election: 'I have failed all those that put their trust and confidence in me'
• Opposition targets PM's decision-making in wake of Kiri Allan resignation
• 'It's hard to judge if we are through the worst' - Mental Health Foundation chief on Kiri Allan
• Watch: Prime Minister Chris Hipkins announces portfolio reshuffle after Kiri Allan resignation
• Political leaders react to resignation and arrest of Kiri Allan

Having had that conversation on his return from Europe, Hipkins was satisfied she could return to full duties, and political commentators agreed her performance showed her - as the prime minister said - at the "top of her game". The crash, however, showed she was not as ready to return as he hoped, and opposition parties were soon calling his judgement into question. 

"I imagine he's frustrated but the New Zealand people are incredibly frustrated by this government because it's focused on itself and not on them," National's Christopher Luxon said. "There's something going wrong in the culture and leadership of that Cabinet group."

Hipkins defended himself, telling reporters he'd required Allan to take time off, she'd had counselling and support and she insisted she was ready to come back to work. He decried those politicising the matter, saying those doing so should think about the message that sent to others struggling with mental health. 

ACT leader David Seymour called for an urgent debate in Parliament over what he called a "very human tragedy" before saying the government was "in disarray" with "no gas left in the tank" - a pointed reference to former Labour leader Jacinda Ardern's decision to step down. 

Senior Labour Minister Grant Robertson said there was no excuse for Allan's actions, but she had been a valued minister who elevated the discussions around mental health and cancer by sharing openly with the public her struggles.

"My reflection is that, as a group of people here, we are stronger and better for the diversity that is in this House. We are stronger and better for making sure that people can see a career in politics even if they're not perfect," he said. 

Green MP Golriz Ghahraman said she wished National had fronted its mental health spokesperson or former leader Todd Muller who resigned due to poor mental health, rather than Luxon or Justice spokesperson Paul Goldsmith who "turned it into an issue of ministers needing a psych report to come back to work if they experienced challenges". 

Muller himself - along with Labour's Māori caucus co-chair Willie Jackson - had spoken candidly on Monday about the challenges of safeguarding mental health in a high-pressure and competitive workplace like Parliament. 

Goldsmith however contended it was absolutely appropriate for the House to discuss the arrest of the Justice Minister, including in the wider context of having had six Ministerial resignations or sackings this year - starting with Ardern, and carrying through to David Parker's decision to hand over Revenue, though he remains in Cabinet.

The portfolio's transfer to Barbara Edmonds was announced alongside the reallocation of Allan's responsibilities on Monday afternoon. Hipkins sold it as giving Parker more time to focus on the Transport portfolio recently handed to him (after Michael Wood's own resignation over repeated failures to divest relevant shares) but it's no secret Parker is a big supporter of the capital gains and wealth taxes Hipkins ruled out less than a fortnight prior.

Parker did not mince words when asked about his reasoning: "You know my views on those things, I thought it was untenable for me to continue so I suggested to Chris that it was in the best interests of him and the party that someone else take that role."

He was also one of the architects of the tax switch plan Hipkins scrapped shortly before its release at Budget time, and if the rumour was true - that Labour was planning to revive its 2011 policy of removing GST on fresh fruit and vegetables - it may all have been a bridge too far. 

That rumour was raised on Thursday by National's Finance Spokesperson Nicola Willis. She refused to provide a source, but seemed confident of the information - and Hipkins did not deny the claims. 

Polling in May suggested more than three quarters of the population were in favour of the idea, but it has downsides: it's complicated to administer, there's no requirement for supermarkets to pass on the savings, it could lead to lengthy legal wrangling over what counts as 'fresh', and can favour higher-income households over the worse-off. It's also an idea Labour's top brass - including Hipkins and Robertson - have previously dismissed, for those very reasons. 

That was not the only claim of a leak from Labour this week either, with The Post publishing an account of Labour's confidential caucus meeting on Monday morning, describing a frank discussion about the events leading to Allan's resignation. 

One first-term MP reportedly told colleagues they could not pretend they had not known about the matter for two years. They said they'd been yelled at by Allan before - but thought it was the price to pay to get decent policy over the line. 

Labour MPs would not confirm the report, but when confronted with the details Minister Kieran McAnulty - the party's former whip - seemed to give the game away, saying: "just because someone else may have spoken out of school doesn't mean I'm going to." 

Leaks can be a symptom of disunity and indeed can make the problem worse, prompting a caucus to close ranks and cause members to question the trust of their colleagues. 

With the election just 80 days away, Hipkins will be hoping a tax policy announcement "soon" will go some way to shoring up support. Should internal disagreements continue, it could prove just the opposite. 

In this week's Focus on Politics, Political Reporter Anneke Smith examines the sudden resignation of a minister and the implications for Labour as the election nears. 

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