Labour is calling on the Government to make public all information about the Government's decision to allow Kim Dotcom into New Zealand and grant him residency.
Dotcom, a German-born 37-year-old millionaire previously called Kim Schmitz, is in custody in Auckland after being arrested on Friday on behalf of United States authorities in an FBI-led police raid at his $30 million mansion.
The US Government wants to extradite him and three alleged co-accused to lay charges of racketeering, money laundering and three types of copyright infringement after Dotcom's company Megaupload and another company, Vestor, were indicted by a grand jury in Virginia.
NZ First leader Winston Peters has called for an immediate inquiry into how Dotcom was granted residency in 2010 under the "high-investment category" after investing $10 million in government bonds and making a large donation to the Christchurch earthquake fund.
Dotcom passed the good character requirements for New Zealand residency despite being convicted more than 10 years ago in German for hacking and insider trading.
Labour leader David Shearer today agreed the public needed some answers.
"It might need an inquiry but it certainly needs the Government to be more forthcoming with what actually happened," he told TV3's Firstline programme.
"Let's put the full case on the table.
"They are clearly not doing that, if they are not able to do that then we may have to move to come kind of inquiry."
The Immigration Minister went through every special case with a fine-tooth comb, Shearer said.
"You cannot tell me that didn't happen this time.
"I can't work out how this guy's been allowed to into the country because of the amount of money he is putting on the table.
"At the same time when he goes to buy a mansion, the Overseas Investment Office turns around and says 'no, you're not of sufficiently good character'.
"Ministers are a part of that, and there's a minister who let him in, who are obviously not talking to each other."
Prime Minister John Key has said ministers were not involved in the decision because Dotcom had declared his convictions and was considered to have a clean slate because the offences were so long ago.
That meant he passed the test of good character.
Key has said the case did not mean the law needed to be changed.
US authorities claim Megaupload - which is a repository for films, television shows and books, where users can watch content free - and its sister sites made more than $US175 million in criminal proceeds and cost copyright owners more than $US500m.
Dotcom has denied any wrongdoing.
In the North Shore District Court yesterday Judge David McNaughton reserved his decision on whether to release Dotcom on bail.
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