'Evidence will clear Peters'

Winston Peters lawyer, Brian Henry, will deliver fresh evidence today that party insiders believe will vindicate the NZ First leader.

Prime Minister Helen Clark further distanced herself from Mr Peters yesterday, but set a high hurdle for sacking him by saying it would take a "devastating development" at today's privileges committee hearing for her to act.

She was poised to sack Mr Peters last week after Monaco-based businessman Owen Glenn produced apparently damning evidence linking Mr Peters to a $100,000 donation which the NZ First leader said he had no part in soliciting.

But she backed off after Mr Peters continued to insist he did not know about the donation, despite being able to offer no explanation for e-mail and phone records supplied by Mr Glenn.

The committee has been inquiring into whether the donation should have been declared in MPs' register of pecuniary interests. But it must also now decide whether Mr Peters and Mr Henry have misled the committee - a far more serious charge.

Mr Henry previously told the committee he personally solicited the donation and also claimed to have been put in touch with the billionaire by a client he refuses to name.

But Mr Glenn insists that Mr Peters solicited the donation personally.

NZ First insiders said Mr Henry, who is appearing by video-link, would provide evidence to back up Mr Peters' version of events.

Mr Henry is likely to be closely questioned over the identity of the middleman and is under pressure to produce documentary evidence rebutting Mr Glenn's claims.

Meanwhile, a One News poll last night showed the fallout over NZ First may be hurting Labour: 58 per cent believed Miss Clark had been too soft on Mr Peters and 63 per cent said Labour should rule NZ First out of any future coalition.

It comes as Mr Peters faces more claims over a jaunt to Las Vegas in May last year.

Miss Clark said yesterday she had been assured by officials that Mr Peters paid for the trip himself. Claims had emerged that the side trip to a world-title boxing match was paid for by wealthy businessman George Calvert.

The trip was made between two official engagements in Europe and Singapore as foreign minister.

Ms Clark said the first she knew about the trip was two weeks ago.

"She didn't give approval because she didn't know about it," a spokeswoman said.

A spokesman for Mr Peters said there was no requirement for him to declare the trip.