Banks has done nothing wrong, Prebble says

Former ACT leader Richard Prebble says there's nothing in the John Banks mayoral campaign donations saga that has given him the slightest concern.

"How do people think political parties get financed? They get financed from donations," the former Labour Party cabinet minister, and former Auckland Central, Wellington Central MP and ACT list MP, says.

"The allegations made against John, even if everything that's said in the newspapers is correct, he still hasn't done anything wrong."

Pressure has mounted on the Epsom MP this week about his relationship with internet tycoon Kim Dotcom, and complaints have been laid with police over donations to Mr Banks' failed Auckland mayoralty campaign.

Prime Minister John Key continues to defend Mr Banks as a coalition partner, but iPredict traders say John Banks may stand down as a minister early next week.

Mr Prebble - a director of many companies, including trucking firm Mainfreight - says Mr Banks's predicament is ironic, considering former Auditor-General Kevin Brady's report into unlawful election spending in 2005, which found Labour had the lion's share at $768,000. He also points to NZ First leader Winston Peters' troubles with donations from billionaire Owen Glenn and his use of trusts, which led to a censure from Parliament.

Mr Prebble says Mr Banks might have faced more difficulty naming Mr Dotcom on his campaign funding returns when he didn't actually know.

"Lots of people are saying if he made a telephone call that proves that he knows it - no it doesn't. Absolutely not. Unless he had a statement from Mr Dotcom at the time the donation was made and before he filled in the declaration, no he didn't know - and the law's quite clear.

"Anybody who has been in parliament for a while thinks this is very mild.

"I think the issues that Mr Banks is facing at the moment are a total storm in a teacup and a nonsense."

Mr Prebble says ACT's coalition agreement with National was "amazing" and Mr Banks was doing a good job.

Mr Prebble also spoke highly of Catherine Isaac, his former ministerial speech writer - who is a former ACT party president and tipped as a future leader.

Of her time heading the party, Mr Prebble says: "ACT had the president that all the other parties wished they had."

Extraordinary media beat-up

Political commentator Michael Bassett this week also dismissed the controversy surrounding Mr Banks as a “most extraordinary media beat-up”. 

Even though he was once a cabinet minister in the fourth Labour government, he pointed the finger at “leftie journalists” who had been feverishly working to convey the impression Mr Banks had done wrong.

“They who won’t accept the left didn’t win the general election.”

The Banks’ saga bears no resemblance to the scandal that engulfed Winston Peters when he didn’t own up to donations to New Zealand First from Owen Glenn in 2008, says Dr Bassett.

In this case, Mr Banks had been dragged in to the controversy by Kim Dotcom, “who seems to have a “snitcher” with Banks.

“Kim Dotcom believes money should be able to buy anything” and now he wants to slam Banks.

The scandal will not topple a government, Dr Bassett says.

“How could it?”

Mr Banks was only one Member of Parliament, and National was still enjoying a strong margin in the polls, says Dr Bassett.

“I just can’t believe it is a serious issue.

“Journalists seem to feel it’s their duty to unsettle a government Unless a new piece of information comes to light, why wouldn’t Banks last?"