Tragic circumstances putting a halt to the political career of one of Labour's rising stars, East Coast MP Kiri Allan, was just the start of the party's headaches this week.

East Coast MP Kiri Allan resigned her ministerial portfolios this week after being charged over her involvement in a car crash in Wellington.

"I cannot express the remorse I feel," - Kiri Allan

Tragic circumstances putting a halt to the political career of one of Labour's rising stars, East Coast MP Kiri Allan, was just the start of the party's headaches this week.

Along with speculation over its tax plans and signs of caucus disunity, leader Chris Hipkins is left with an incredible challenge to refocus Labour on the fast-approaching election.

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Details were murky when the news broke on Morning Report: one person in custody after a two-car crash on Evans Bay Parade in Wellington about 9pm Sunday. Extraordinarily, that person was believed to be Justice Minister Kiri Allan, a detail confirmed by Prime Minister Chris Hipkins shortly after.

Hipkins said Allan was in extreme emotional distress at the time of the crash.

She was released about 1am, having been charged with careless use of a vehicle and refusing to accompany a police officer; and fined for returning an infringement-level alcohol breath test. Hipkins said her position in Cabinet was no longer tenable - something Allan agreed with, resigning all her portfolios. That afternoon, she confirmed on social media she would not contest the upcoming election including her East Coast electorate seat.

"For now, it is time to step out of the arena ... to heal myself and chart a new course," she wrote. "To the Prime Minister, I have undermined you and the trust you placed in me to do an important job for New Zealand. I cannot express the remorse I feel. I am so, so sorry."

She had recently been open about her struggles with mental health, posting on social media about taking time off after a relationship break-up. She took further leave during Parliament's two-week recess, pending a discussion with Hipkins about a series of claims - strenuously denied - of poor working relationships with staff.

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Justice Minister Kiri Allan resigns after being charged over car crash…

Go to this episode on rnz.co.nz for more details