Earlier today, stuff.co.nz reported*:
Prime Minister John Key has rejected opposition calls for him to sack Smith, saying it was ''an error of judgment'' and he had not breached the Cabinet manual.
Then just after lunchtime the National party website reported:
Prime Minister John Key said today he had accepted with sadness the resignation of Dr Nick Smith from his Ministerial portfolios.
[...]
“It is important that Ministers are seen to actively manage both real and perceived conflicts of interest in the exercise of their duties,” says Mr Key.
That's a huge change in tune and just goes to show that Keys judgement is in question as well.
* stuff.co.nz have rewritten the article to not include this quote.