Smith tipped to quit Parliament in wake of cabinet resignation

UPDATE 2.30pm: National frontbencher Nick Smith resigned all portfolios today, amid speculation he will quit politics in 2014.

The former political high flier stands down from his job as minister in charge of National's crucial local government reform, along with the climate change and environment jobs.

The roles are being spread around three ministers: Gerry Brownlee takes local government, Craig Foss takes climate change and Chris Findlayson takes environment.

In a personal statement to parliament - which cannot be challenged by members – Dr Smith said he erred twice in providing letters of support for a friend, Bronwyn Pullar, who was having a battle with the Accident Compensation Corporation.

Dr Smith was ACC minister at the time and Ms Pullar, as well as being a friend, was a former head of publicity for National's Auckland division.

"The first error I made was in July last year when ….I provided a letter providing information of my knowledge of her in that pre-accident period.

"The letter made it plain that I did not seek in anyway to interfere with ACC decisions about her claim and it was in the role of a friend."

However the letter was sent under ministerial letterhead and in any case he conceded he should not have written it, given his ministerial role, at all.

Dr Smith met yesterday with ACC officials to survey other correspondence on the issue involving Ms Pullar and an earlier letter came to light.

The earlier letter, from an advocate for Ms Pullar, was to associate ACC minister of the time, Pansy Wong. Ms Wong recused herself from the issue as she, too, knew Ms Pullar personally. She referred the matter to Dr Smith.

Dr Smith did not say who the "advocate" for Ms Wong was, but former National party president Michelle Boag has been acting for Ms Pullar in recent months.

It has since been revealed the advocate was National MP Sam Lotu-liga.

Dr Smith had replied to Mr Lotu-liga "without acknowledging that, I, too, had a conflict of interest."

His involvement had not affected the way the ACC had dealt with Ms Pullar's case.

"I did not, in my view, interfere in any way with the judgment calls ACC made about that particular person's claim but I do accept the signing of those two letter is not up to the standard this parliament can rightly expect of its ministers."

1.30pm: Speculation is growing embattled minister Nick Smith is about to resign.

Dr Smith is to hold an emergency press conference before Parliament resumes at 2pm today. Both Dr Smith and Prime Minister John Key face further questions in the House at question time today and the sudden press conference appears to be timed to pre-empt those questions.

The front-bench minister is facing accusations of improperly using his position as minister for accident compensation last year when he wrote a personal reference for a friend who was embroiled in a battle with the ACC Corporation.

The friend, former Auckland National Party publicity director Bronwyn Pullar, was accidentally sent sensitive files by the ACC Corporation and ACC executives have accused her of trying to use the potential embarrassment about that leak of private information to bargain for more money.

Ms Pullar has been an ACC claimant for nearly a decade after a cycling accident left her with a head injury.