The Labour Party in Wales is refusing to rule out the possibility that Ron Davies could be disciplined over recent criticism of his own party's attitude in the National Assembly.

A party spokesman said that taking disciplinary action is a long and complicated process, but that it is still a possibility.

The Labour leadership in Wales has been stung by an attack from the former Welsh Secretary on the running of the Assembly during its first months.

Mr Davies said the Assembly was "limping on" in a climate of "unstable government".

In a much-trailed speech on Wednesday, Mr Davies said inclusive, cross-party co-operation was essential to devolution, but the Labour Party administration was "confusing minority rule with a mandate to govern".

However, Mr Davies's attack on the Labour administration in the Assembly has prompted the Secretary of his local constituency party, Martin Mansfield, to resign early from his post.

'Unstable government'

Mr Davies had told the Welsh Governance Centre audience: "We have unstable government which cannot provide effective leadership.

"We must avoid the danger of Labour becoming paradoxically - having been the party which delivered devolution - the party least comfortable with it."

"The heaviest responsibility and the hardest choices rest with Labour which - as the largest party in the Assembly - naturally aspires to form the administration.

"But limping on day-to-day, issue-by-issue is just not a practical option.

"Nor is trying to compel the Assembly to bend its collective knee in obeyance if our will fails to prevail."

He went on to call for a new culture of inclusiveness.

Party resignation

After Mr Davies gave his speech, the Secretary of the Caerphilly Constituency Labour Party, Martin Mansfield, announced that he was stepping down from his post.

"Ron expects total loyalty and discipline from local party officers - but shows neither of these qualities himself," said Mr Mansfield.

"The Labour Party gave Ron Davies a second and even a third chance to rebuild his political career and he has repaid us with a stream of attacks designed to help the nationalists."

Opposition reaction was guarded.

Welsh Conservative Leader Nick Bourne said he believed the identification of the problem - that Labour was still run from London - was quite correct.

'Not sure'

"But I will need to look at some of the proposed solutions because I'm not so sure about that."

Before the speech to the Institute of Welsh Affairs, the AM for Caerphilly said his speech would not be a personal attack on Alun Michael, but a look at ways in which Assembly can fulfill its potential.

"Alun Michael has my full support and I won't have anything said about the way he is fulfilling his responsibility as first secretary."

A Labour Party spokesman said it was a shame that only the party had not been given an advance copy of a speech which preached the merits of inclusivity.

Tory Assembly leader Nick Bourne, who attended the speech, said he found Mr Davies's comments interesting.

"I think the identification of the problem of the Assembly still being run by Westminster is quite right," he said.

"I think some of the problems are personalised round the present administration.

"The structures and committees are there but they are not working because of the attitude of the Executive."

Vocal critic

Earlier Mr Davies had said he wanted to review how the Assembly has performed and the problems that have arisen.

Mr Davies added: "Everyone realises that we could do better, that is not to be unkind, it is a question of identifying what can be done to make things better."

The so-called architect of devolution has been a vocal critic of the Labour Party in recent months.

Over the weekend Mr Davies described the way his colleagues have handled the issue of European grants as "inept".

His speech came as Plaid Cymru met to discuss its threatened no-confidence motion in Alun Michael.

But no decision on how the party will act will be made until Friday.