Helen Clark has failed to show leadership by rewarding Trevor Mallard instead of punishing him for his behaviour in Parliament, says National Party Leader John Key.

"Instead of demoting him, she has effectively given him a portfolio promotion by handing him three influential new responsibilities - in addition to retaining his SOEs and Associate Finance roles.

"No fair minded Kiwi would view Trevor Mallard's portfolio promotion as an exercise in caucus discipline.

"It also makes a mockery of Helen Clark's claim that Mr Mallard is suffering from stress.  Surely giving him more responsibilities and workload adds to his stress, especially in an area like Environment which is supposedly central to Labour's re-election plans.

"The reshuffle is a lame exercise in recycling, not renewal.

"The same people are still in charge – Helen Clark and Michael Cullen. They are the same tired old faces singing the same tired old songs.

"I note that Labour's master strategist, Pete Hodgson, has lost Health, which is an admission of failure in a portfolio that has had billions thrown at it over the past nine years for seemingly little result."

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National Party Leader John Key is looking forward to significant progress on the issue of Auckland governance now that the makeup of the Royal Commission of Inquiry and its terms of reference have been released.

"I am pleased with the calibre and experience of all three commissioners Peter Salmon QC, Dame Margaret Bazley, and David Shand.

"This is such an important issue, and therefore it is critical the inquiry is steered by people who will be able to handle such a complex job.

"In addition, the terms of reference need to be equally robust to ensure any solutions are lasting and will stand the test of time."

Mr Key is particularly pleased that the terms of reference recognise the importance of effective relationships and collaborative arrangements between central and local government, and will address the ability of the Auckland region to compete internationally as a desirable place to live, work, invest and do business.

"It is vitally important that Auckland ends up with a governance plan that secures its place as a truly competitive global city and region.

"National is not prepared to tolerate the infrastructure deficit that has hamstrung our largest city for so long.

"I do remain concerned, however, that this inquiry has taken so long to eventuate. But at least Labour has recognised it is an issue of such critical importance that it cannot be ignored any longer."

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26 October. Host Neil Collins talks with John about John's recent trip to Ireland and England, leaky homes, affordable housing, Auckland politics on the stadium issue, National's plans for Auckland governance, fallout from the Mallard stoush, narrowing gaps in the polls, the coming Australian tax cut packages on offer from Howard and Rudd and the impending fight for the Treasury benches here.

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25 October. On Jamie Mackay's Farmingshow John and Jamie talk about the unfortunate encounter between Trevor Mallard and Tau Henare in Parliament and some of its wider implications before moving on to a discussion about climate change policy and the need for balance between the needs of the environment and the economy.

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National Party Leader John Key spoke with National MP Tau Henare this morning after the incident at Parliament yesterday.

"I expressed disappointment that the incident happened," says Mr Key.

"I'm pleased Mr Mallard has apologised to Mr Henare for his actions.  There is no place for physical violence in New Zealand politics."

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