Sometimes you have to wonder how our senior politicians and police force get themselves into messes such as the so-called terrorist arrests.

Last month, New Zealand took centrestage worldwide in the "war against terrorism", dramatically invading a terrorist camp and mobilising hundreds of armed police nationwide. Dozens of homes were stormed, with 17 terrorist suspects and their belongings carted off to prison.

On that day, armed blockades were stationed on roads around Ruatoki, near the Ureweras. All vehicles were searched and, in many cases, their drivers and occupants detained and photographed. Locals were not permitted to leave town. More concerning, though, was that even after the suspects had been arrested, police in full battle regalia continued house-to-house raids in Ruatoki, targeting residents who were not even involved. Disturbing stories are starting to circulate that many innocent residents were imprisoned in their bedrooms for hours while their homes were ransacked.

Once the suspects had been apprehended and the raids completed, Police Commissioner Howard Broad breathlessly informed the country that the arrested suspects would be charged under the Terrorism Suppression Act. Though he couldn't give the public more information, he assured us that he had ample evidence and we should trust them. In fact, he went so far as to say that he would stake his professional reputation that these were bona fide terrorists. It was all very dramatic, of course. Given what we now know, you'd have thought commonsense would have been for the police to say they had arrested these people on firearms charges with more serious charges pending.

Helen Clark and John Key admitted to having been briefed by the commissioner and senior officers of our spy agencies. When the Terrorism Act was first passed, we were assured that it was not intended for domestic crimes - political or otherwise - but was merely for our protection against foreign terrorists. Our terrorism laws would give our police appropriate powers to detain terrorists who intended or were killing people or blowing up things to terrorise us. So when the commissioner tells us that the police have a watertight case, it's a serious matter.

The problem with this story, of course, is that the political community in New Zealand is very small and many of the people are known.

Tame Iti is the most high-profile prisoner and police were always drawing a long bow if they thought that most New Zealanders would actually believe he was a terrorist, intent on mayhem and murder. Iti has assured those close to him that the police have nothing on him and he is looking forward to his trial. It could be his finest hour.