Liberal leader resigns

After the news got out of John Brodgen's racist "joke" about Helena Carr, he resigned as Liberal leader in the NSW parliament, while still claiming it was all meant in jest.

The New South Wales Premier Morris Iemma says it is extraordinary the NSW Liberal party wanted to keep on a discredited leader rather than a new one, and says the party may suffer a public backlash.

"What's happened in the last 48 hours is probably a new low in New South Wales politics, or in politics in general," he said.

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