As a trade union member he became involved in the Labour Party, joining the party in 1963 and was a longtime member of the Wellington Central electorate committee.[3] In the lead up to the 1987 general election he stood as a candidate to replace Gerry Wall, the retiring MP for Porirua, as the Labour candidate. In a highly contested selection meeting Kelly was chosen ahead of former All Black and local regional councillor Ken Gray. The selection was criticised by local residents who were critical of Kelly not living in the electorate and suspicions of media reports around an organised campaign to select trade unionists for all open safe seats ahead of the 1987 election. Kelly dismissed the criticism of his and other unionists selections stating he was "his own person" and his background in unions motivated him to be a representative of working people in the area. He also pledged to move from his home in Khandallah to the Porirua area.[3][4]
He was elected and served as MP for Porirua from 1987 until the 1996 election, when he became MP for the new seat of Mana. He was among several backbenchers elected in 1987 that opposed the Labour government's controversial Rogernomics reforms. He opposed the introduction of Goods and Services Tax before entering parliament and after being elected opposed the proposed flat tax rate, arguing each unfairly distributed taxation burdens on to working class people. He was also critical of how independent cabinet decision making was and campaigned for more substantive input into decisions by the party caucus.[5]
In November 1990 he was appointed as Labour's spokesperson for Fisheries and Senior Citizens by Labour leader Mike Moore.[6] Kelly supported Helen Clark in her successful leadership challenge to Moore after the 1993 election.[7] Under Clark he lost the Senior Citizens portfolio while retaining Fisheries and additionally appointed Shadow Minister of Broadcasting from 1993 to 1996.[8] From 1996 to 1999 his responsibilities shifted again and he was Shadow Minister of Housing and Overseas Aid.[9]
In 2005, Kelly made remarks to a Canadian governmental panel which were regarded by some in New Zealand as offensive to Māori and various immigrant communities. Calls were made for his resignation, and the government criticised Kelly for his comments, for which he apologised.[12][13]
Later career
Kelly is currently the president of the Association of Former Members of Parliament.[14]
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