Winston Peters could be sacked as Foreign Affairs Minister as early as today, as Prime Minister Helen Clark considers her options after the New Zealand First leader last night appeared before Parliament's privileges committee.
Miss Clark implied yesterday a decision on Mr Peters' future with the Government was looming, saying she would consider her next steps after his evidence last night.
When asked for a time frame, she replied: "How long is a piece of string?"In Parliament, Miss Clark repeated her statement that what expatriate billionaire Owen Glenn presented to the committee on Tuesday was "disturbing evidence" but to which there was a right of reply.
Last night Mr Peters remained defiant.
Mr Glenn said Mr Peters solicited a $100,000 donation in November 2005 and thanked him for it in January 2006.
Mr Peters has denied asking for money and has said he knew nothing about the $100,000 donation until July this year.
Mr Glenn provided a paper trail of phone calls, emails and an independent witness to support his assertion there was no doubt Mr Peters asked for the money during a phone conversation on December 5, 2005.
In sacking Mr Peters, Miss Clark would be wise to follow the lead of National Party leader John Key and declare she could not work in a future coalition with Mr Peters.
If both National and Labour rule Mr Peters out of a future coalition government, NZ First is unlikely to return to Parliament, as voters will decide their vote will be wasted on a party unlikely to have any influence on policy or direction.
Severing her connection with Mr Peters, and NZ First, this far out from the election will give the Prime Minister a chance of getting some distance between her party and the donations scandals that have plagued Labour as much as NZ First.
Labour has turned its back on its wealthy benefactor for reasons open to speculation.
The most likely reason is the support NZ First provided for the passing of the emissions trading legislation.
Whether the legislation was worth losing another possible $500,000 in funding from Mr Glenn will become known as the election campaign progresses.
National is already calling the current administration the "Clark-Peters" government, something that it is not, but it is a phrase that could be used during the election campaign.
With the contentious emissions trading scheme legislation safely in place, along with the expectation that other key legislation, such as the Waste Minimisation Bill and the Public Transport Management Bill, will pass by today, Miss Clark has no reason to keep Mr Peters on his ministerial salary and perks.
Mr Peters is facing inquiries on donations from the privileges committee, the Serious Fraud Office and police.
The police investigation is the one that should worry Mr Peters the most.
The committee does not have decision-making authority - it reports its decision back to Parliament.
If Miss Clark decides this morning she has enough evidence that Mr Peters has misled her, the public and Parliament, she must act quickly and sack him.
Several of her ministers and former ministers, including Dunedin South MP David Benson-Pope, have been demoted or sacked for what now seem minor offences.
It is time for Mr Peters to go the same way.
Political editor Dene Mackenzie is in Wellington this week.
