NSW Election Results |
Ms Keneally said she took responsibility for the result, which could leave Labor with as few as 20 seats in the 93-seat parliament.
"I believe that the next stage of renewal for our party is best undertaken by a new leader, a new leader who can take up the next phase of our party's renewal, unencumbered," she said.
"A new leader who will have my support, and, if it is any use, my counsel form the back bench."
Ms Keneally said she had spoken to the new premier Barry O'Farrell to congratulate him.
"Tonight we acknowledge and accept the verdict of the people of NSW," a sombre Ms Keneally told Labor supporters.
"The people of NSW always get it right and so tonight I congratulate Mr O'Farrell and I wish him and the government that he will form all the best."
Sources: http://www.2ue.com.au