Daley quits as Berejiklian wins majority

Michael Daley(R) has quit as NSW Labor leader until a leadership ballot after the federal poll.
Michael Daley(R) has quit as NSW Labor leader until a leadership ballot after the federal poll.

NSW Labor's woes are continuing with uncertainty over the party's leadership to go on for months in the middle of a federal election while the coalition has won a majority in the NSW parliament.

Michael Daley on Monday evening quit as Labor leader following the party's poor showing in the weekend's state election, but says he intends to re-nominate after the federal poll.

Mr Daley said he would stand aside until after the federal election - due in May - with deputy leader Penny Sharpe to fill in as interim leader.

The Berejiklian government secured a majority in NSW by winning 48 seats in the 93-seat lower house.

On Monday evening the ABC called the electorate of East Hills as being retained by the Liberals.

Mr Daley said he would stand aside until after the federal election - due in May - with deputy leader Penny Sharpe to fill in as interim leader.

To do otherwise would be an unnecessary distraction from the task of trying to elect a Bill Shorten federal government, he said in a statement.

NSW Labor executives delayed the leadership spill until after the federal election to limit any negative impact on the federal campaign.

Mr Daley told reporters he intends to re-nominate for the leadership when nominations open.

A ballot is required following an election defeat under the party's rule. The ballot is of the caucus and rank-and-file members with both blocks given equal weight.

Mr Daley said under normal circumstances an interim leader would be appointed until a ballot was called, and while the process had been interrupted by the impending federal election, it was in the spirit of the rules for him to stand down.

His final week of the campaign involved two major blunders.

A video from September emerged of the-then Opposition telling a pub forum that Asian migrants were taking local jobs and he then stumbled on key numbers behind his education policies during a live television debate.

However, Mr Daley has defended his record saying he had "picked up the pieces that the party was in" when he took over in November following the resignation of Luke Foley.

He denied the decision to renominate for the leadership could hurt federal Labor, saying standing aside as leader "removes the distraction".

Interim leader Ms Sharpe suggested the new full-time leader would be in place by the end of June.

Kogarah MP Chris Minns is touted as a top contender with Labor frontbencher Jodi McKay also a possible challenger.

Australian Associated Press