In a highly contested selection meeting Kelly was chosen ahead of former All Black and local regional councillor Ken Gray.

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.

[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.

[11] 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.