Cunliffe resigns — but seeks to regain leadership through primary contest

UPDATE / Sept 27: David Cunliffe has resigned as Labour leader — but announced at the same time he will throw his hat into the ring for a primary-style leadership contest.

His resignation is being seen by some insiders as an attempt to force the timetable. Some rivals —  notably former leader David Shearer — had preferred to wait for the dust to settle first, and for the results of an independent review of the party's crushing election defeat to come in. The party's ruling council has been meeting this afternoon to discuss the direction and timing of the review, and who will carry it out.

"I have today decided to resign the leadership of the Labour Party, effective from the end of caucus on Tuesday," Mr Cunliffe said in a statement.

"The party has suffered an historic election loss and in resigning as leader I take responsibility for that."

Timing of the contest is yet to be set.

He told a media scrum he expected the current deputy leader, David Parker, to be the acting leader of the party in the interim.

Last October's leadership ballot was the first held under a new system that gives Labour MPs 40% of the vote, 40% to members and 20% to affiliated unions.

While less popular with his caucus colleagues than rivals Shane Jones and Grant Robertson, Mr Cunliffe was able to carry the day by swinging left to win member and especially union support.

One report says a ticket is being lined up with Grant Robertson as leader and Jacinda Ardern as his deputy.

David Parker has dropped out of the race, while former leader David Shearer has indicated he no longer has interest.

Stuart Nash, who returned to Parliament following his upset win in Napier last Saturday, says he is considering a leadership challenge.

This afternoon, Mr Cunliffe told media, "You learn on the job. There's no preperation for leader."

He said he was ready for the primary contest. Totating leaders is not in the party's interests.

ABOVE: Video highlights of Cunliffe's resignation speech (RNZ).

Could go either way
"This could go either way: a brutal but ultimately cleansing leadership contest in which a lot of long standing tensions get resolved, or a complete meltdown and perhaps a breakaway party," NBR politics editor Rob Hosking says.

"Labour’s problems are such a poisonous mix of issues: old MPs who just will not go away because they have nothing to go to; a large contingent within the party (and across the wider Left) who are still trying to re-set the clock back to pre-1984; and a tragic lack of top rate political talent," Mr Hosking says.

"I wouldn’t rule out another candidate coming through the middle between Cunliffe and Robertson, as the only way of averting a complete and utter political collapse. Perhaps David Shearer; perhaps even David Parker. I know he’s ruled himself out, but people have done that before and then been 'drafted'."

RAW DATA: Cunliffe's resignation statement

D-Day for David: Cunliffe in peril as key union withdraws support

Sept 27: David Cunliffe's position as Labour Party leader is in immediate peril.

Mr Cunliffe is scheduled to address the party's ruling council this afternoon, and front to media at 2.30pm.

Insiders say a resignation is on the cards. If not, all-comers will be watching for a date to be set for a leadership vote.

In a key development overnight, Mr Cunliffe has lost the support of the EPMU — the largest union affiliated with the party.

Cunliffe resignation won't solve much
If Mr Cunliffe does fall on his sword, "I'm not convinced it is going to solve much, and until the events of Tuesday and its aftermath  I thought they should delay any change until they'd evaluated what went so, so wrong," NBR politics editor Rob Hosking says.

"But it's fairly clear things are so toxic between Cunliffe and the bulk of caucus things can't go in like this.  

"The big question is whether the wider party would accept a change imposed by the MPs, or whether it just shifts the rift out of the caucus room."

One special votes are counted and the final general election tally is released (it's expected October 4) Labour's caucus has to take a confidence vote in its leader within three months.

If Mr Cunliffe fails to get 60% support, it will trigger a leadership contest under the new primary system.

Mr Hosking sees months of bloodletting either way.

Neither Mr Cunliffe nor Mr Robertson returned NBR's calls.