Parker stands down in favour of Shearer

Labour Party list MP David Parker is understood to have been offered the role as party finance spokesman in return for dropping out of the leadership race and supporting David Shearer.

The race is now between Mr Shearer and a yet-unnamed deputy candidate, and David Cunliffe and Nanaia Mahuta.

Mr Cunliffe, the current finance spokesman, has identified himself with the centre-left of the party over recent days, while Mr Parker is seen as being more to the right.

While there is speculation that Mr Parker's withdrawal and support of Mr Shearer - who has two and a-half years' experience in Parliament - puts the Mt Albert MP in the lead in the now two-way race, sources close to the Labour Party said it was by no means decided that others, such as Shane Jones or Grant Robertson, would put their names up for the role of deputy to Mr Shearer.

People committed to Mr Parker had not automatically switched their allegiance to Mr Shearer, making the leadership campaign closely contested.

The Otago Daily Times understands deputy leader Annette King and campaign manager Trevor Mallard may have reacted to Mr Parker's poor performance on television on Wednesday night and had decided he was not viable as a leader.

Mr Mallard oversaw the general election campaign just past.

Labour Party general secretary Chris Flatt yesterday released a timetable which showed the leadership contenders would be in Dunedin next Friday to meet local party members and explain their credentials.

The road-show starts on Monday in Hamilton, followed by Palmerston North, Wellington, Christchurch, Dunedin and ending in Auckland on Sunday, December 11.

The meetings were open to party members only. The formal leadership vote would be undertaken by caucus members on December 13.

However, given the election result gave Labour its worst result in 84 years, it is likely the feelings of members will be conveyed to their 34 MPs during the consultation process.