KEY POINTS:
Prime Minister Helen Clark is planning to run a full term government despite the donations row embroiling her foreign minister, New Zealand First leader Winston Peters.
Miss Clark told journalists today that she believed it was more likely that public opinion, not the courts, would be the final judge on Mr Peters, as it was unlikely he had done anything illegal.
Miss Clark is planning to meet Mr Peters tomorrow to hear his explanation for the controversy which surrounds Sir Robert Jones' $25,000 cheque and other allegedly covert donations which have been made to NZ First.
She indicated it was unlikely that anything would come from tomorrow's meeting that would force an early election.
Some have suggested Miss Clark could sack Mr Peters or he could quit, threatening the stability of the Government, but Miss Clark did not envisage that happening.
"I always made it clear that the intention of the Government was to run full term and I have no reason why it wouldn't," Miss Clark said.
Sir Robert has said Mr Peters solicited money from him - which Mr Peters denies - and that a cheque for $25,000 was made out to the Spencer Trust.
NZ First did not declare the donation, and Mr Peters has refused to say what the trust is or what the money was used for.
At a press conference in Auckland on Friday, he said he had nothing to do with the trust, which is managed by his brother Wayne Peters.
Wayne Peters has refused to discuss it.
This follows hard on the heels of Mr Peters admitting he received $100,000 from Owen Glenn to help pay legal expenses, after repeatedly denying it, and news that donations from the Vela family had been made in such a way that they did not have to be declared.
Miss Clark said today she did not believe Mr Peters or NZ First had broken electoral law mainly because it was so broad "bulldozers" could be driven through it.
Many of those involved, including Mr Peters, were lawyers, so Miss Clark said she "would be very surprised if there is illegality".
She said she would want Mr Peters' assurances at the meeting that nothing illegal had happened.
Asked if she thought Mr Peters was a hypocrite for attacking other parties over receiving donations and using trusts, Miss Clark replied it was up to the public to judge that.
"We all live in a goldfish bowl in public lives, what we say on one occasion will be replayed to us on others and that is where the court of public opinion comes in."
Television New Zealand reported tonight that it understood Mr Peters had offered to brief National leader John Key on the issue ahead of a statement to Parliament tomorrow afternoon.
Besides having to convince the prime minister he has done nothing illegal, Mr Peters is still waiting to see if he will face privilege charges over not declaring the donation from Mr Glenn.
Potential breaches under electoral law are unlikely to be prosecuted because the statute of limitations on the events in question has expired.
- NZPA
