It is all unravelling for Kristina Keneally and the NSW Labor government.

Another scandal, this time ending in the loss of a key minister, has removed any gloss she might have brought to the leadership after Nathan Rees was ousted.

While David Campbell says he will remain in Parliament, his statement issued last night should not be read as a promise to contest the next election.

The last thing Labor wants is another byelection, so he is unlikely to quit before March.

Campbell's seat of Keira is held by a hefty 22 per cent. But questions are already being asked about his suitability as a candidate.

Labor already had a whiff about it in Wollongong following the corruption scandal that engulfed Wollongong Council two years ago.

Add that to the expected loss of Penrith, following the resignation of the disgraced former MP Karyn Paluzzano, and the ALP's election strategy is in tatters, less than one year out.

There was no hint whatsoever that Campbell was feeling under pressure during his performance in question time yesterday afternoon.

He took several questions from the Opposition including one on his response to the F3 fiasco.

The news was obviously sprung on him - and therefore his colleagues - very late in the day.

The suddenness of his resignation was written all over the faces of his shell-shocked ministerial colleagues as they conferred in crisis outside the Premier's office.

It was also apparent in Keneally's decision not to face the media last night, following a meeting with senior colleagues and advisers that ran for several hours.

Today, however, is a different story and there will be demands on Keneally to answer questions.

If there is an upside to the timing, it is that Parliament now rises for a week.

That, at least, will offer Campbell and his presumably traumatised family some respite.

Sean Nicholls is the Sydney Morning Herald's state political editor.