Lord alleged at a news conference that Malley made five specific demands in exchange for staying with the Conservatives, including: more money for his constituency office, more help for the Miramichi's troubled paper mill and the appointment of a friend as his special assistant.
[5][6] When Malley announced he was leaving the Conservatives, he stated that he would use his new position of influence to support legislation that helps the poor people of New Brunswick and residents of the Miramichi region[citation needed].
On March 28, 2006, Malley was acclaimed as Speaker of the Legislature after Tony Huntjens, the nominee of Bernard Lord, withdrew his name.
Graham said Malley was making the legislature the "laughing stock" of the Commonwealth because of the unusual and unprecedented move of a, by definition, non-partisan Speaker announcing from his chair his change in partisan affiliation.
Premier Benard Lord argues he now has a majority again and the opposition should honour the terms of that motion while the Opposition has said that they do not recognize a change of affiliation from a speaker in the chair and will still operate as if the government were in a minority situation until such time as the Speaker resigns, sits among the Conservative caucus and re-offers for his office as a Conservative.
With only two parties represented, the tight numbers make it difficult for the Government to pass some of its agenda through the House and they had proposed radical rule changes to increase their majority inside of legislative committees.
Later, however, fellow Progressive Conservative Peter Mesheau announced his plans to resign from the legislature and rather than face another minority, Bernard Lord called an election.
In the general provincial election of September 18, 2006, Malley lost his seat to Liberal challenger Bill Fraser.