Finance Minister Michael Cullen was left yesterday deflecting a concerted attack on Prime Minister Helen Clark as to whether or not she retained confidence in New Zealand First leader Winston Peters.
An exasperated Dr Cullen was heard to mutter "Oh dear me" at one stage as National Party deputy leader Bill English started making some ground during his persistent questioning over whether Miss Clark, who was in Dunedin yesterday, stood by her statement that she had "no basis" to remove Mr Peters' ministerial warrant.
Mr Peters has stood down as Foreign Affairs Minister while the privileges committee investigates conflicting evidence over a $100,000 donation made by expatriate billionaire Owen Glenn.
He and New Zealand First also face investigations by the Serious Fraud Office and the police into donations.
Miss Clark said yesterday she had discussed the committee proceedings from Wednesday night with senior colleagues who participated in the hearing of Mr Peters' evidence.
"They advise that issues before the privileges committee lie unresolved in the face of the conflicting evidence presented to it.
"The National Party declared Mr Peters guilty before any evidence was heard.
''That is an improper process and not one I have been prepared to follow."
Mr Peters' often belligerent behaviour throughout the whole affair made him a difficult person to insist on due process for, she said.
Yet a reasonable person, putting aside any bias they might have towards Mr Peters, would agree that it was fair to do so.
The expectation in Parliament was Miss Clark would sack Mr Peters as a minister before the weekend.
However, the appearance of Mr Peters' lawyer, Brian Henry, before the committee next Tuesday has given Mr Peters another respite, but created more difficulties for Miss Clark.
Parliament is in recess next week.
Dr Cullen told the House that when Parliament resumed on September 23, it would receive the report of the privileges committee before going into urgency to pass legislation. Valedictory speeches for retiring National MPs will be held on September 24, followed by retiring Labour MPs the next afternoon.
The longer the donations debate continues to swirl around Parliament, the more harm it can do to Miss Clark.
In the meantime, Mr Peters might not be the minister but he keeps his perks.
By not sacking him, Miss Clark can continue to delay naming the election date.
In the intervening time, she is hoping the polls close up between Labour and National.
With National leader John Key refusing to deal with Mr Peters in any future coalition, close polls mean Labour has a better chance of forming the next government with the Green Party, NZ First (if it returns to Parliament) and the Maori Party.
The election is most likely to be held on November 8, meaning Miss Clark could delay announcing the date until the last week of Parliament.
It is a gamble, but one she is obviously prepared to take.
Being tied with Mr Peters in the lead up to the election, and during the election if he remains on his ministerial salary, is something that will play into the hands of her opponents.
There seemed to be a hardening of attitude against Mr Peters by Labour MPs on the privileges committee, suggesting they, too, have had enough of the situation.
Labour's private polling is showing it is so far not being hurt by being tied to Mr Peters.
Behind the scenes, the party is working hard to ensure it wears none of the fallout.
Mr English is trying to tie the deteriorating outlook for the economy with the Government taking its eye off the country's growth prospects.
"It's time for the Government to knuckle down and concentrate on policy that will lift our longer-term growth prospects.
''In the face of the need for action, the Labour Government is mired in scandal and preoccupied with political survival."
That brought an angry response from Dr Cullen, but one he might have to repeat many times to gain effect.
"The Opposition has for weeks asked questions about this [donations] issue and not one has had the guts to ask the Minister of Finance about the state of the economy in all that time."
Miss Clark has stated she wants to be fair in her dealings with Mr Peters but it will be a long 11 days before the privileges committee recommendation.
• Political editor Dene Mackenzie is in Wellington this week.
