New Zealand First leader Winston Peters is reminding Labour MPs they need a leader who can work with other parties.

Labour's caucus yesterday confirmed David Shearer as leader, but under the party's rules the question automatically comes up again in February.

Mr Peters refused to express a preference for either Mr Shearer or for likely a February challenger David Shearer, but says the major parties need to realise that under MMP the decision on who should be the next prime minister isn't just up to them.

"Instead of saying 'here's our runner, he is going to make it whether you like it or not,' the big picture of how you choose a leader is now affected by what their capacity is to work with others, because they will never, Labour or National, ever make it back on their own and they haven't since 1993," he says.

David Shearer has stripped senior MP David Cunliffe of his number five rank and his main role as economic development spokesperson for disloyalty and failing to squash speculation he would challenge as a leader.

But he says he will need to discuss further with caucus colleagues whether he should take action against some of Mr Cunliffe's key supporters, including Hauraki Waikato MP Nanaia Mahuta.




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