Labour leader Andrew Little says he will face defamation action by Kiwi businessman Earl Hagaman in court after his offer to publicly apologise and pay redress was declined.
"Today I want to publicly apologise unreservedly to Mr Hagaman for any hurt, embarrassment or adverse reflection on his reputation which may have resulted from my various media statements," Little said.
Little's statement relates to comments he made in April relating to a hotel deal by Scenic Hotels Group for a Niue resort and a donation from Earl Hagaman, which sparked defamation proceedings against Little.
"I have offered that apology to the Hagamans," Little said today. "I have also offered to make a substantial contribution towards the Hagamans' costs, an amount I am advised, was greater than would likely have been awarded by the Court.
"My offers of an apology and redress have been rejected and the matter will now have to be resolved in court. That is unfortunate. I strongly believe everybody's time, not least the Court's, could be better used."
Little said he wanted to make it clear that the object of his criticism last year was the actions of the National government.
"I accept that no connection has been established between the donation and the award of the management contract and the hotel upgrade.
"I propose to make no further statement until the proceedings are resolved."
Foreign Minister Murray McCully dismissed his allegations at the time, saying that they were "utterly baseless".
In a statement this afternoon, Lani Hagaman said the media statement by Little was a surprise.
"It's difficult for us to accept this as a genuine apology if Earl is receiving the details after it was released to the national media," she said.
Lani Hagaman said they would consider their position over the weekend and they would seek legal advice but, at first glance, believed they would continue with defamation proceedings that commence in Wellington's High Court on April 3.
"Mr Little has had 12 months to apologise, and in the interim we've spent more than $200,000 in legal fees preparing for this case, which is now only one week away."