Prime Minister Kevin Rudd has warned Labor MP Belinda Neal that her future in politics depends on her capacity to behave after police said they would not lay criminal charges over the infamous Iguanagate affair.
Ms Neal said she'd been vindicated after police said there was not enough evidence to lay federal or state charges against her or her husband, suspended NSW Education Minister John Della Bosca, over her row with staff at Iguanas Waterfront restaurant and bar on June 6.
Staff at NSW Central Coast nightspot claimed Ms Neal was abusive and threatening towards them, alleging she told them she would have the club's "f***ing licence".
The claims were not supported by statements made by Ms Neal's dinner companions that night, and the conflicting statutory declarations formed part of the subsequent police investigation.
Mr Della Bosca - who is now cleared for a return to the NSW frontbench - was accused of inappropriate conduct when he admitted drafting the club's apology to the couple.
Mr Rudd put Ms Neal, who represents the Central Coast seat of Robertson, on notice that her behaviour would be under ongoing scrutiny.
"Ms Neal's future in politics, like all other MPs, depends on the member's capacity to meet the standard of behaviour expected by the Australian public," a spokesman for the prime minister said in a statement.
It was noted that Ms Neal had met Mr Rudd's directive to undergo counselling "concerning a pattern of unacceptable behaviour," ordered after the Iguanas incident and revelations she was once suspended from a soccer league for allegedly kicking an opponent.
"Ms Neal has confirmed she has both carried out and benefited from the counselling," the statement said.
The picture is rosier for Mr Della Bosca, who was suspended as NSW education minister in the fallout from the June 6 stoush.
The decision by police not to pursue any charges - the basis of advice from the commonwealth and NSW Directors of Public Prosecutions - clears him for a return to the ministry when NSW Premier Morris Iemma reshuffles his frontbench on Friday.
NSW Police said the case was closed after it accepted the advice of the commonwealth and state prosecutors that there was "insufficient evidence" to support criminal charges.
Ms Neal told reporters the announced "proves that I did nothing wrong".
"It vindicates my previous statements to the media, to the parliament, and to the constituents of Robertson," she told reporters in Canberra.
"I was telling the truth.
"I did nothing wrong. I did not swear, I did not threaten anyone's job, and I did not use or misuse my position as an MP."
Ms Neal again rejected allegations that she had pressured her former electoral assistant, Melissa Batten, to change her statutory declaration about what occurred that night.
She described the police investigation as exhaustive, and said she had cooperated fully.
"I did not attempt to cover up anything during the course of the investigation into this matter," she said.
"While I never expected any other outcome than the one outlined ... today - which has totally vindicated me - I am glad it's over and we can now move on."
However, the nightclub's sacked operations manager Jared Golla said the lack of criminal charges did not exonerate the couple.
He is calling for an independent inquiry into the incident.
"If you get an Independent Commission Against Corruption (ICAC) public inquiry ... then people are compelled to tell the truth, compelled to speak," he told Macquarie Radio.
"So why don't we have one? Then the Australian public will get the whole truth and nothing but the truth.
"Everything that we did say in our stat decs ... did happen."
Ms Neal said she believed she had the full backing the Labor party and her constituents.
The MP said she had undergone counselling after being ordered to do so by Mr Rudd, but said it had not been for anger management.
"What was agreed is that I would attend counselling to learn how to deal better with people. That I have done," she said.
"The reason that I undertook counselling was to ensure that matters could move on and that we could deal properly with the important issues, which is the parliamentary agenda of this government."
Opposition Leader Brendan Nelson said Mr Rudd should dump Ms Neal regardless.
"As far as I am concerned, the behaviour engaged in by Ms Neal, based on the statutory declarations that were made by staff ... under no circumstances would I tolerate that," he said.
Premier Morris Iemma has said Mr Della Bosca would be reinstated if no charges were laid against him.
He announced a cabinet reshuffle following the shock resignation of Deputy Premier John Watkins.
Mr Della Bosca did not return calls.