New ACT leader Brash says former leader Rodney Hide will step down as an MP after election, but will keep portfolios until then

New ACT Party leader Don Brash says the man he replaced in a coup last week, Rodney Hide, will keep his ministerial portfolios until the November 26 election before stepping down as an MP.

Brash said Hide would not be standing for Parliament as an ACT candidate for an electorate, nor would he be on the party's list.

Brash made the announcement at a press conference this afternoon, ahead of a 4pm meeting with Prime Minister John Key, at which Brash will also tell Key ACT wanted Deputy Leader John Boscawen to relinquish his ministerial roles.

Boscawen was reaffirmed as the ACT party's deputy leader and will be their leader in the House of Representatives up until the November 26 election, Brash said.

Key fudges on Brash as Finance Minister as English hit out at Brash spending cut calls

Meanwhile, at Question Time this afternoon, Prime Minister John Key would not rule out appointing Brash as Finance Minister any time in the future. Brash has publicly indicated a desire for the role if ACT were to gain a big enough vote to pressure the government into such a high-profile ministerial appointment after the November 26 election.

Asked in the House by Trevor Mallard whether he would rule out appointing Don Brash as Finance Minister at any time in the future. Key replied: "I can absolutely rule him out for this term".

Brash had earlier attended the start of Question Time on the floor in the House of Representatives, as was his right to do so as a previous member of Parliament, much to the amusement of the Labour MPs present.

Brash sat through a question to Finance Minister Bill English on the focus of Budget 2011. In answering, English said: "There are those who are to the right of the National government who want to significantly cut spending on government programmes without regard to the consequences," in reference to policies advocated by Brash.

"This government will continue to take a balanced and responsible approach," English said.

Prior to question time, Key told media it was very unlikely Brash would be given the job of Deputy Prime Minister following the election, but would not rule the scenario out.

Key meets Brash

Key said he met with Brash at 4pm on Tuesday afternoon.

“The first thing he made clear was he wanted to see stable centre-right government and work constructively with the National Party. I thanked him for that," Key told media in Parliament.

"He indicated that he wanted Rodney Hide to stay on as a Minister, I accepted that. He also indicated that he thought it was in the best interests for John Bascawen to step down as a Minister and accept the responsibility both as deputy leader, but most importantly, their Parliamentary leader," Key said.

"Again I’ve accepted that. I’ve received his resignation and I’ve advised the Chief Administrator that that resignation would be accepted by the government. I’ve also made the decision that I’m not going to replace him specifically with a new minister, but what I am going to do is transfer the portfolio of Consumer Affairs to Simon Power, and that’ll be happening today,” he said.

The half-hour conversation with Brash was cordial and wide ranging, Key said. National would continue to hold discussions with Brash over the next six to seven months.

(Updated with Key comments on meeting, comments prior to, and from, Question Time)