Angry Brash denies US election role

Don Brash

National Party leader Don Brash last night denounced as a "thundering lie" a claim by senior Labour Cabinet minister Trevor Mallard that National's election campaign is being financed and run from the United States.

The extraordinary allegation, on the eve of a shift in Labour's election advertising to a direct attack on Dr Brash's credibility, drew a rare intervention from the US Embassy in Wellington.

But Labour's accusations left its own credibility on the line after Mr Mallard, when challenged, failed to furnish evidence to back his claims.

Mr Mallard said Dr Brash was following "behind the people who are funding his campaign" and "there is no doubt the lead bag man for Mr Brash is an American".

Dr Brash had shown no strong character or beliefs and although he had some views, "of course the people writing the campaign lines, again Americans, won't let him say that".

"There is nothing wrong with being American, I think that is great. But I think New Zealanders expect foreign policy to be written in Wellington, not Washington."

He refused to say whether he was referring to the Bush Administration but said "the campaign structure and the campaign lines are being run by people who are based in the US".

Mr Mallard later agreed that US hedge fund billionaire Julian Robertson was at least one American Labour had in its sights.

Mr Robertson, whom Dr Brash describes as a personal friend, owns luxury golf courses at Kauri Cliffs and Cape Kidnappers.

Last night the US Embassy firmly rebutted Mr Mallard's claim.

It said it wanted to "reassure the people of New Zealand that the United States Government has neither asked for nor received policy commitments from any political party in New Zealand".

"As Ambassador [Charles] Swindells made clear in his farewell speech, the US stands ready to work with whomever the people of New Zealand choose to represent them in order to make this important relationship all that our respective citizens want it to be."

Labour leader Helen Clark declined to comment but party president Mike Williams backed Mr Mallard.

The Prime Minister's office and other senior Government figures are not believed to have known of Mr Mallard's attack before it occurred yesterday.

Labour insiders have murmured about the funding issue for several days, with deputy leader Michael Cullen making oblique references to National's alleged overseas big-money backers several days ago.

Aside from the diplomatic ructions, Mr Mallard's comments also threaten to overshadow the launch today of Labour's new pre-campaign advertising assault questioning Dr Brash's intentions.

Labour is putting up new billboards and has prepared a booklet of historic quotes from Dr Brash aiming to show him as a pro-nuclear, pro-Iraq war, free-market ideologue.

It aborted its advertising aimed at highlighting its achievements to focus on Dr Brash and to capitalise on coverage over whether he would have sent troops to Iraq.
The Herald reported last month that Labour had received a $500,000 donation from wealthy expatriate Owen Glenn, who lives in Australia. There is no legal requirement to declare such a donation.

Mr Mallard and Mr Williams said the difference between the two parties was that Labour was upfront about its big donation.

Dr Brash said the attack was a "desperate attempt" to move the debate away from policy issues.

"I can assure the public our policies are homegrown."

He referred questions about funding to National campaign manager Steven Joyce who, in keeping with National policy, refused to confirm or deny who had made donations.

But TV3 later reported him saying, "There are no cheques from Americans".

Speaking from his Idaho home last night, Mr Robertson said he respected the two major parties' leaders, but had a "strong view" on which one he supported.

He declined to name the party or to say if he had contributed to either or asked others to do so, saying he did see not why he should be dragged into the debate.

"People in all countries of the world are for or against [political groups] and they contribute and they ask people to contribute.

"I really don't have any comment to make other than that it's done all over the world."

Mr Robertson said: "I certainly don't have strong links with George Bush.

"I don't think George Bush would know who in the world I was."

- additional reporting: Kevin Taylor