Pressure mounts on Peters as Key all but shuts door

Billionaire Owen Glenn and Winston Peters. Photos / Mark Mitchell, Herald on Sunday

Foreign Minister Winston Peters' job is safe for now but his future would not be bright under a National government.

In an explosive letter to Parliament's privileges committee released this morning billionaire Owen Glenn wrote that Mr Peters sought, obtained and thanked him for a $100,000 donation.

Mr Peters had denied knowledge of the donation which he says his lawyer Brian Henry obtained in December 2006 to pay legal costs. Today he said Mr Glenn was wrong and that he would prove it.

Prime Minister Helen Clark will await the outcome of the privileges committee investigation about the donation, but National's John Key has all but ruled out any coalition or support arrangement with Mr Peters following this year's general election.

Mr Key said unless Mr Peters could provide a credible explanation, something he thought unlikely to happen, he would be unacceptable in a government he led.

Asked if he would negotiate with Mr Peters after the election towards a support arrangement or coalition, he said: "I am ruling out Mr Peters. He simply doesn't have the integrity in my view unless he can somehow change that."

He said Mr Glenn had no motive to give wrong information but Mr Peters did.

Mr Key said Prime Minister Helen Clark should stand down her foreign affairs, associate senior citizens and racing minister.

Miss Clark told reporters she sought an explanation following the privileges committee releasing Mr Glenn's statement this morning.

"And I have received an explanation which is that he refutes the suggestion," Miss Clark said.

"The fact that a minister is in his or her job is a statement that I have confidence in them."

Asked if Mr Peters' position remained tenable, Miss Clark said there was a process to be followed and she had a duty to be fair.

"I think we really need to see the privileges committee work through the issue."

Mr Peters slammed Mr Key's approach.

"He was behaving tough with a wriggle out clause. It's not clever, it's not experienced, it's not smart and it's not wise," he said in Parliament.

National was strongly represented on the privileges committee and Mr Peters questioned why Mr Key would not wait for its finding.