Key wades in to donations row

If allegations about Winston Peters soliciting large donations, disguising them in trusts and not disclosing them are true, then it "smacks of hypocrisy", National leader John Key said today.

Controversy surrounding Mr Peters over donations to New Zealand First shows little sign of abating, with Wellington property magnate Sir Robert Jones today confirming he made a number of donations.

Sir Robert said he donated $25,000 to the party for the 2005 election after being asked by Mr Peters.

NZ First disclosed receiving no donations over $10,000 in 2005.

Sir Robert has now written to NZ First after speculation that money he donated had not got to the party.

Mr Peters, the leader of NZ First and foreign minister, is facing the possibility of an inquiry into the $100,000 he received from Monaco-based expatriate billionaire Owen Glenn.

Donations were also reported to have been received from the Vela family's fishing and thoroughbred companies between 1999 and 2003 totalling $150,000, but made out for amounts under $10,000 to avoid declaration rules.

Mr Peters is Minister of Racing.

The Dominion Post today reported an undeclared donation of $25,000 from Sir Robert.

Sir Robert said the cheque was written out by one of his staff members to Spencer Trust -- described by The Dominion Post as sometimes being used to pay NZ First bills.

Mr Peters had criticised other parties for taking large donations and using trusts to disguise them.

"It certainly smacks of hypocrisy if the allegations... are correct," Mr Key said.

Mr Key said it was time Prime Minister Helen Clark became more involved.

"There is a stream of allegations now being made. I think it is getting to the point where realistically the prime minister has to move for the integrity of her government," Mr Key said.

"These are serious allegations and Mr Peters is well and truly entitled to defend himself." It was necessary to get the issues sorted out before the election, "for the health of our democracy...we need to get the facts on the table." Sir Robert also said he had made large contributions to NZ First in the 1990s when the party was being established.

"I'm not worried about the $25,000, that's not a lot. I'm worried about the other $150,000 he took off me in the early days," he said.

"I've always played my role as a rich man in supporting the political parties and I've never asked for anything back.

Miss Clark, who is being forced to defend Mr Peters against National Party attacks, said yesterday he would not have to pay back the $100,000 from Mr Glenn.

Under Cabinet rules it is up to the prime minister whether ministers can keep gifts of more than $500.

Miss Clark said even if the money was declared as a gift, the Cabinet Office believed he could keep it because it had been used to finance the Tauranga electoral petition in 2006.

The money from Mr Glenn went into a fund run by lawyer Brian Henry, and Mr Peters said the lawyer did not tell him about it until last Friday night.