Act MP admits party 'naively' backed Brash

Act MP Stephen Franks has admitted his party backed Don Brash's coup against Bill English for the leadership of the National Party, and says it was a naive strategy.

He said Act hoped the leadership change would mean Act's own policies would be adopted by National, only to find itself cut out of a centre-right coalition.

Sunday newspapers carried stories based on emails and faxes which showed Act and the Business Roundtable backed Dr Brash when he ousted Mr English as leader in 2003.

Mr Franks said on NewstalkZB today Act saw the leadership change as a chance for National to "come to its senses", but did not realise how dramatic the shift in voter support from National to Act would be.

Act has lost significant support since Dr Brash has been leader of National. It is polling well below the 5 per cent threshold needed to win seats under MMP, and faces extinction on September 17.

Mr Franks said Act now feared that although National had picked up its policies, it would be half-hearted about implementing them if it won the election.

The leaked documents show that Act founder Sir Roger Douglas was one of those who gave advice to Dr Brash.

Today Sir Roger said he had -- but only after the coup.

"I certainly sent emails to Don Brash after he had been installed as leader," he said on National Radio.

"It was the same strategy material I sent to Helen Clark in 1989 when Labour was so far behind National. . . I never had any response other than a phone call to say thanks."

National says it is trying to find the source of the leaked material.

"This is just another dirty tricks campaign," a spokesman for Dr Brash told NZPA.

Labour has jumped on the documents, saying they show Dr Brash has a secret far-right agenda.

National believed New Zealanders would "see through this sort of thing" and said the Business Roundtable had no more influence than other groups.

"We receive a range of views from across the political spectrum and the National Party caucus makes its decisions."

The documents showed:

* Act founder Roger Douglas sent Dr Brash advice on his coup and briefed him on political strategy on becoming leader, telling him to avoid getting "painted 'hard-right"'.

* Business Roundtable executive director Roger Kerr suggested to Dr Brash a key phrase he used in his Orewa speech and advised him on staff hiring,

* Business Roundtable vice-chairwoman Diane Foreman wrote to Dr Brash offering to help his coup.

* Business Roundtable member and National Business Review publisher Barry Colman paid for Dr Brash to get media training.

Prime Minister Helen Clark said the leaking showed "deep internal splits within the party over the direction being taken by Don Brash".

She said the documents "flushed out" the Business Roundtable/National agenda and showed Dr Brash bought the leadership with big business backing.

The documents "bear out" her comments at last Sunday's campaign launch that National represented the "last throw of the dice for the people who brought us 'Rogernomics' and 'Ruthenasia', Helen Clark said.

She denied having any involvement in the leaks: "The first that we heard of this whole story was when journalists reported it to us."

Cabinet Minister Steve Maharey issued a statement urging National to come clean about the agenda behind Dr Brash's election bid and who was paying for it.

"It is now clear ... Dr Brash is cooperating with and receiving support from proponents of the hard-right," Mr Maharey said.

He said Dr Brash wanted to continue with asset sales and benefit cuts.

Mr Maharey said Dr Brash should say where he was getting money from and again raised the spectre of off-shore support -- colleague Trevor Mallard earlier said National was getting funds from a US bag man.

Dr Brash said National had decided not to sell assets and had adopted other policies which showed it did not have an extreme agenda.

- NZPA