No leadership decision on Saturday - Act president

Party processes mean former National Party leader Don Brash will not this weekend be able to roll Rodney Hide as ACT leader.

ACT president Chris Simmons this morning downplayed Dr Brash's chances of taking over, but said whatever happened a decision could not be made at this Saturday's board meeting.

The party's MPs needed seven days notice of a leadership challenge, he said.

"It will not be happening this Saturday," he told Radio New Zealand.

Dr Brash, 70, is making a bid to take the Act leadership from Mr Hide. If that failed he would set up his own party.

Mr Hide has struggled with internal Act ructions and revelations of his controversial spending of taxpayers' money on travel.

Prime Minister John Key over the weekend said he could work with Dr Brash, but they did not agree on many issues.

Dr Brash canvassed support in the Act caucus over Easter. Of Act MPs, Sir Roger Douglas and Heather Roy were likely Brash backers while newbie Hilary Calvert has indicated support for Mr Hide. John Boscawen will be under pressure from both camps.

Mr Simmons said it was unlikely the board would agree to Dr Brash's request to speak at its meeting.

For a challenge to be lodged Dr Brash needed to resign his National Party membership, join Act and give caucus seven days' notice of his intention to challenge before the board could even consider it.

"If the majority of them voted in favour of Dr Brash, then that would be a clear indication that they no longer supported Rodney and it would actually be a very hard call for the board to vote against that."

The board had veto powers but was unlikely to use them. The decision was "pretty much" in the hands of caucus.

Mr Simmons said Mr Boscawen had been a loyal deputy to Mr Hide and Ms Calvert was "100 percent" behind him.

"Right at the moment I am seeing three very firm votes on this from the caucus."

He described Dr Brash's preference of former Auckland City mayor John Banks as the candidate for Epsom as "just unpalatable. I can't imagine how this can actually play out".

Dr Brash this morning told Radio New Zealand that ACT faced oblivion without his leadership. He expected Mr Hide would lose the Epsom electorate in the November's election, and fail to win the minimum 5 percent of the party vote to survive.

Should Dr Brash he fail to win the leadership he would set up an alternative right-wing party that would strip ACT votes.

"I think it would be a great pity to split the centre-right party vote in that way, but the reality is if ACT doesn't accept my proposal I think they are facing oblivion anyway."

Dr Brash and Mr Hide dispute that the ACT leader previously offered him a co-leadership role which he rejected because he considered the Hide brand was too badly damaged to win. The men had been friends for 15 years.

Dr Brash said seven months was plenty of time to get a new party going and he had the financial backing.

Mr Key, speaking from London, told reporters he could work with Dr Brash if he formed a party or led ACT despite finding some of his views "extreme".

"We very much see ourselves as a centre-right party, and not a political party that follows mainstream right-wing doctrine.

"But we will do are best to work with the players depending on the result of the general election, but whether they create a party or not or whether he becomes the leader of ACT is a matter for Don Brash and members of the ACT Party."

Asked if he would consider Dr Brash as a minister Mr Key said that was too early to ponder that.