The Act Party implosion is its problem but won't stop the government from business as usual operations, Prime Minister John Key says.
Act MP Heather Roy was dumped as deputy to leader Rodney Hide last week and replaced by John Boscawen who also took over her Minister of Consumer Affairs job.
The story has failed to die after notes prepared for Tuesday's fateful caucus meeting showing the deteriorating relationship with Mr Hide were leaked to media by Mrs Roy's senior adviser, Simon Ewing-Jarvie, who lost his job after the meeting.
Asked if the Act Party was self-destructing, Mr Key disagreed.
"My summation of it is there's been a substantial personality breakdown between Heather Roy and Rodney Hide," he told Newstalk ZB.
Mr Key said the government didn't get involved in its support parties' internal ructions and the only advice given was through the Cabinet Office.
"Really at the end of the day they are a different political party, they run their own caucus. I genuinely do not know any more than anyone else in terms of why the breakdown took place."
However, he was confident the government would retain all five Act votes and the internal problems would not impAct on him the way the Alliance breakdown had affected Labour.
"We are going to get on and govern as business as normal."
Mr Key defended his decision to accept Mrs Roy's resignation without knowing the background.
"When Heather lost the confidence of her caucus she resigned, so I only had two options – accept it or reject it," he told Breakfast on TVNZ.
He said the caucus promoted a new deputy leader and he was recommended to fill the ministerial posts.
"I live in an MMP environment -- as they are going to learn in Australia (when you are a) minority government you do deals."
National has decided to run a candidate in Epsom -- the seat Mr Hide holds and the sole reason there are any Act MPs in Parliament. However, Mr Key clarified today that it was undecided whether the party would campaign for both the party and electorate vote in the seat.
"We haven't made that decision yet."
Mr Hide yesterday said the leaking of the document was not a surprise and consistent with Mr Ewing-Jarvie's behaviour, and also that he understood it happened on the night before the caucus meeting when he was still a ministerial adviser, which raised security issues.
Mrs Roy told The New Zealand Herald she did not condone the leaking and was "extremely disappointed and angry" when it happened.
"I never intended it to go outside caucus or the Act board."
However, she said the action was out of character for Mr Ewing-Jarvie and he had apologised.
Mr Hide said Mrs Roy had been poorly advised by Mr Ewing-Jarvie but it was not his business to pass judgment on the relationship between the pair. The Herald on Sunday photographed Mrs Roy outside Mr Ewing-Jarvie's home on Saturday morning and said her car was there overnight.
Mrs Roy told the New Zealand Herald today: "I am not and never have had an inappropriate relationship with Simon Ewing-Jarvie."