By Chris Ormond of NZPA

Wellington, June 15 NZPA - Credit card misuse has sparked a significant reshuffle within the Labour Party, including promotion to the front bench of Charles Chauvel and Nanaia Mahuta, while the main offenders are left to work their way back into favour.

Mita Ririnui and an emotional Shane Jones fronted media as they entered a Labour caucus meeting this morning, while Chris Carter, who has lost his treasured foreign affairs portfolio to Maryan Street, managed to avoid cameras and reporters.

The trio was demoted by Labour leader Phil Goff for misusing ministerial credit cards, but Mr Carter picks up the conservation portfolio and retains ethnic affairs.

He was also bumped six places down the party pecking order to 13, while Mr Jones went from 11 to 21 and has no portfolio, and Mr Ririnui retains his associate Treaty of Waitangi role but goes from 23 to 26 on the list.

Mr Jones, whose spending included hotel pay-per-view pornographic movies, has been up-front about his actions and was humble today as he headed into caucus without a portfolio.

"For those who have got new roles I say to them 'kia kaha'." He said he now had to demonstrate there was more to him than the "episodes of delinquency".

Mr Jones, who paid back more than $5000 of misspending, said he wasn't interested in discussing his punishment in relation to that of other MPs and would now await the sharp end of barbs during debating sessions in the House.

"That has already started, and unfortunately for me I have got a new name in the north and that is the 'blue heeler'."

Mr Goff said Mr Jones' level of misspending had opened himself up to a big demotion, but that he had the ability to work hard and win back the confidence of the leader and caucus colleagues.

Mr Carter misspent, but paid back, $250 according to records released last week under the Official Information Act, but there has been controversy about the amount of spending over the years on overseas travel when his responsibilities were largely domestic.

He has offered little public comment on his actions leading up to today's caucus meeting, besides saying he accepted Mr Goff's decision.

Mr Goff admitted today Mr Carter could have better handled the fallout.

"I think he hasn't handled it well...the fact is that he is a hard working and competent MP".

"Ethnic affairs is not a plum portfolio, it's a seven day a week portfolio. That is a punishment -- keeping him in that."

Mr Ririnui, who bought golf clubs and a bike on his ministerial card before refunding the money, said he wasn't clear about the spending rules, but took full responsibility for his error.

On his demotion he said; "That's a call the leader must make under the circumstances, and he has made it...I'll have to work hard to reinstate myself to a responsible level and I intend to do that".

The demotions led to a significant portfolio and bench shuffle and Mr Goff said those on the winning end deserved what they got.

Grant Robertson had performed impressively and warranted getting tertiary education, while Mr Chauvel, who picks up environment, had also proved to be a competent performer.

Mr Goff said Ms Mahuta, following time out with a new baby, had convinced him she was "ready and enthusiastic" to make a return.

Others such as Ms Street, David Parker, who picks up economic development, and Darren Hughes, who gets infrastructure, had been tipped to move forward within the party. Mr Ririnui's forestry portfolio went to Stuart Nash.