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Labour MP Shane Jones - Source: ONE News -
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Shane Jones looks set to be demoted in the Labour caucus following his admission he put pornographic movies on his taxpayer funded credit card.
The former Cabinet minister has admitted using taxpayer money to order porn movies.
"I'm guilty of having watched blue movies. I'm a red blooded adult," Jones said on Thursday.
He said he will not resign. But he is set to face some tough sanctions.
ONE News understands he will be demoted down the caucus rankings from his current position at number 11.
Deputy political editor Francesca Mold says Labour has suddenly gone deathly quiet on the issue today refusing to front on camera.
However, she says she understands from her sources that Jones will not just be getting a telling off from his leaders but will be demoted and told in the strongest possible terms that he needs to shape up and rehabilitate himself or ship out.
It is understood this decision will not be publicly announced until Monday when Labour leader Phil Goff returns to New Zealand from China.
Goff wants to take some soundings from colleagues first, says Mold, who understands he is furious and can't believe the stupidity of Jones and other MPs caught up in the credit card sting.
Labour MPs who are not involved in the scandal have privately told ONE News they are also concerned because members of the public are coming up to them and telling them they are all the same and are all tainted by the revelations.
They also want to see their leaders take firm action to restore some credibility to the party.
Meanwhile, it's clear that any future hopes Jones had for the Labour leadership have been dashed.
"Well in politics shit often sticks," he said.