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Tim Smith's decision not to contest the next election after crashing his car while drunk is an "honourable one", the Victorian Liberal MP's leader says.
Mr Smith sent an overnight email to Kew Liberal Party members confirming he will not contest the next election in the seat of Kew.
The 38-year-old returned a breath test reading of 0.131 - almost three times the legal blood alcohol limit - after crashing into a car and a Hawthorn home on the night of October 30, narrowly avoiding a child's bedroom.
His licence was immediately suspended and he has been fined $750.
In Mr Smith's email, sent at midnight on Saturday, the Kew MP said he had been deeply touched by the encouragement he had received from Liberal Party supporters and members.
"This, however, does not excuse the terrible lapse of judgement that I made last weekend," Mr Smith wrote.
"I believe it is in the best interests of the party that I do not contest the next election in Kew."
Opposition Leader Matthew Guy previously made public his "unequivocal" position that Mr Smith should not contest the election and on Sunday commended his decision.
"He has acknowledged that his actions one week ago were dangerous and wrong and he has paid an immense price for those actions," Mr Guy said in a statement.
"I commend him for his decision and sincerely wish him the very best."
Mr Smith has previously called for the resignation of several public figures, including deputy chief health officer Annaliese van Diemen for comparing coronavirus to Captain Cook's arrival in Australia, and Burwood MP Will Fowles after he kicked in a hotel door during an alcohol-fuelled argument with staff.
Asked whether Mr Fowles should also resign, Premier Daniel Andrews said the two incidents were not the same.
"He'll be a candidate next time and it'll be up to the people of his electorate, as it will be for all of us, to fundamentally decide who they want," Mr Andrews told reporters on Sunday.
"I don't see any comparison. The only comparisons that have been drawn are rather self-serving comparisons from somebody today who has announced he's not standing.
"There you go - I've said more than I intended to about him. It's just not my business."