PM refuses to back candidate Ching

Helen Clark is refusing to express confidence in the Labour candidate forced to stand aside over allegations that he misused Government connections.

She also indicated yesterday that it was unlikely the police inquiry into the allegations would be completed in time for Auckland businessman Steven Ching to stand as a candidate this election.

Mr Ching got into trouble last month when it was revealed that he did not disclose convictions when he sought a place on Labour's list.

The minor convictions were related to his fisheries export business, and the party forgave him.

The new allegations are that Mr Ching offered to help Auckland broadcaster Paul Liu to become a JP by getting Labour MPs to sign the application forms.

It is also claimed Mr Ching asked Mr Liu to lend him $50,000.

Mr Ching denies the claims, but was asked to stand aside on Sunday to allow police to investigate.

The claims were reported by the Herald on Sunday, which said it had an affidavit by Mr Liu to back them.

But on Sunday, Mr Ching issued a statement signed by Mr Liu saying the two events were not connected.

"There were two totally different issues, and obviously the [Herald on Sunday] writer had put them together."

Labour Party president Mike Williams said the matter had to be sorted out.

"If this allegation turns out to be true, he wouldn't be able to take up his seat in Parliament anyhow. So he might as well stand aside until it's disproved," he said on National Radio yesterday.

Asked whether he still wanted Mr Ching as a candidate, Mr Williams said: "Yes. He's a very good organiser, he's a good campaigner, and he has roots deep in the Chinese community."

Mr Ching was ranked 42 on Labour's list, which would give him a good chance of being elected.

Helen Clark said Labour tried to check people's backgrounds but "such matters haven't come to light in any discussions ... sometimes some things can get away on you".

She said it would be "surprising" if Mr Ching was a candidate this election, given the time such inquiries took.

Asked if Labour would seek another Asian candidate, she suggested it was unlikely and existing list candidates would move up a slot.