KEY POINTS:
A defiant Winston Peters yesterday told the New Zealand First convention he did nothing wrong during the Owen Glenn funding row.
But analysts predicted it could damage his party's hopes of retaining a presence in Parliament after this year's general election.
Addressing about 200 cheering supporters at the party's 15th birthday celebrations in Auckland, Peters told cheering supporters: "Was it legal? Yes. Was any law broken? No."
Peters had strenuously denied ex-pat billionaire Glenn had made a $100,000 donation to him or to New Zealand First.
He called for New Zealand Herald editor Tim Murphy and political journalist Audrey Young to resign after secret emails between Glenn and his New Zealand spokesman Steve Fisher, confirming a donation, were printed in the Weekend Herald eight days ago.
But on Friday afternoon he changed his story, saying he had just been told by his lawyer Brian Henry about Glenn's $100,000 donation to help pay off the legal bills Peters ran up over a challenge to his defeat in the Tauranga electorate in 2005.
Yesterday Peters renewed calls for Murphy and Young to "do their duty and resign".
He had initially refused to talk to waiting media.
But he later relented and held a short press conference away from delegates inside the convention.
Peters, whose mother died on Friday, refused to discuss the donation and referred questions about suggestions Glenn could be given the honorary post of consul-general in Monaco, where he lives, to Henry.
"Not a cent went to New Zealand First, not a cent went to me."
He had earlier told the convention the donation would not have been an issue "if New Zealand First wasn't a serious threat to some vested interest" and thanked the party faithful for their support.
"I will do everything in my power to continue to deserve it."
Henry last night told the Herald on Sunday "nonsense" claims that Peters must have known about the donation forced him to temporarily break his policy of not revealing financial sources.
He said politicians were "poorly paid" and needed donations, and he would continue to fundraise.
"They've got a temporary job, and they can't afford litigation. They just don't have the money."
Peters was clearly among friends yesterday as colleagues and supporters presented a united front to questions about the donation.
Former president Dail Jones told reporters in March that a sum of money had been donated, only to be publicly scolded by Peters.
Yesterday Jones insisted there were no hard feelings between the two men.
"I am quite relaxed about the whole thing, I just think the matter's being cleared up now."
Jones said Peters had been "very kind" to him, praising him at the convention for his work on the foreshore and seabed laws.
"Things happen and then you move on, we've got an election to fight," he said.
MP Pita Paraone said it was "fair comment" that the incident could change undecided voters' minds before the election.
"That's one of the reasons about clearing it up at this stage."
Christchurch list MP Ron Mark said he had no comment on the matter and was looking forward to focusing on the election.
Voting was also on the minds of grassroots supporters. All those who spoke to the Herald on Sunday said they still backed Peters.
Tauranga delegate Elsma Matthews said the electorate had "kept the home fires burning" for his return and she accepted his explanation.
Mt Maunganui delegate Miranda Horan said Peters "tells it like it is".
"He's got balls and a lot of politicians don't."
The party atmosphere continued with singing, balloons and a big cake.
Two delegates, Steve Campbell and Nadia Robinson, serenaded Peters to the tune of Tina Turner's Simply the Best. The crowd cheered Peters as Campbell sung "in your eyes I get lost, I get washed away".
Commentators claimed the events of the past week would damage New Zealand First election hopes. Professor Nigel Roberts from Victoria University in Wellington said Peters admission on Friday was "a bombshell" to a party that was "vulnerable at the best of times".
National Party deputy leader Bill English yesterday called for Prime Minister Helen Clark to explain why she had taken no action against her Foreign Minister.
A spokeswoman for Clark declined to comment, saying it was an internal party matter for New Zealand First.
