Olive Crane announced her resignation as Tory leader earlier this month. (Brendan Elliott/CBC)

Olive Crane's resignation as leader of the provincial Conservatives is fuelling a debate about leadership and the future of the party and its MLAs.

Crane is stepping down on Jan. 30. But she's staying on as leader of the Opposition, and that's creating confusion in the party ranks.

Political commentators describe it as a Tory debacle.

Party president Blake Doyle calls it a "period of great challenge," as well as a "period of great opportunity."

He admits that the party is in a mess right now, but said there is a plan.

"We have an initiative called the 30/30 plan that we'll be rolling out to the party membership, and that involves short-term tactical responses to the situation, as well as long-term vision," Doyle told CBC News.

The short-term response is to deal with the awkward leadership situation.

Crane announced her plan to resign on Dec. 5. Two days later, she said the Tory caucus had unanimously endorsed her to continue on as Opposition leader.

"The Opposition leader is selected from within caucus, and we had a discussion and that day we chose to have Olive Crane remain as leader of the Opposition," said MLA Hal Perry.

Crane now says she'll stay on as Opposition leader until the next election or until a new leader is elected and sitting in the legislature.

However, the five-member caucus can vote to change that at any time.

There are rumours circulating saying that if Crane is voted out as Opposition leader, she would sit as an Independent and try to convince MLAs Perry and Colin LaVie to join her.

"People have asked me whether the rumours are true or not," Perry told CBC News. "I have not been in any discussions about going as an Independent, forming a new party or anything other than the position I'm in right now."

Steven Myers and Colin LaVie were not available for comment Friday.

Crane did not respond to requests for an interview.

MLA James Aylward reluctantly agreed to discuss the leadership confusion.

"The Opposition leader, of course, speaks on behalf of caucus inside the legislature," Aylward said. "That is Olive Crane."

When asked how long Crane would be in that position, he said "that's unforseen at this moment."

Aylward said caucus makes that decision and what happens in caucus is a confidential matter.

Much of the turmoil is over the Opposition office itself, and who controls that budget and the staffing there, and who will be the face of the Conservative party.

The matter will be thrashed out when the party executive meets on Jan. 3