Hide on Labour's risky strategy


Rodney Hide reckons that Labour is walking a tightrope with the Donghua Liu donations saga. In his Herald on Sunday piece, and under the headline Risky response to donor row Hide opines:

Deny, deny, deny. Attack, attack, attack. That's been Labour's response to businessman Donghua Liu claiming he donated tens of thousands of dollars to the Party.
Labour's strategy is risky. It is challenging Liu's honesty and integrity. He's no doubt feeling aggrieved. The danger for Labour is that Liu produces documents, witnesses and photographs confirming his substantial donations.
That's what did it for Winston Peters in 2008. Sir Owen Glenn was able to prove the donations that Peters denied.
Labour also risks drying up its donations. Attacking a donor is hardly encouraging to others. I doubt there will too many Chinese charity auctions for Labour this election.
It's a risky response but Labour's entire attack strategy has been risky. Attacking John Banks for declaring Dotcom's donations as anonymous ran the risk that its own house wasn't in order. Likewise in attacking Maurice Williamson for ringing the police on Liu's behalf.
Cunliffe's letter 11 years ago for Liu wouldn't have mattered except for the hellfire and brimstone he visited on National for similar advocacy. It's true Cunliffe wasn't ringing the police. It's true Liu wasn't facing charges. But such difference matters constitutionally. It doesn't matter politically.
As far as headlines and soundbites go, Cunliffe has been caught doing exactly what he railed against.

Hide is dead right; perception is everything in politics,and the perception is that David Cunliffe has been a hypocrite. He and his MP's attacked National with relish, and made all sorts of accusations towards National MP's.

Had they restricted themselves to simply attacking National MP's, this may have passed without comment. But the likes of Trevor Mallard, aided and abetted by Winston Peters who relishes any opportunity to attack Chinese, made a series of allegation against National's apparent mate. One of those accusations was that he was downright corrupt, offering cash for changes to immigration policy. Like most of the accusations Mr Mallard makes, always under the cover of parliamentary privilege, he has yet to substantiate it.

But Labour took things one step too far, impugning Donghua Liu's reputation. That's when he started talking about his links to the Labour Party, at a time when David Cunliffe was a senior Minister. The rest, as they say, is (or will be) history.

Hide continues:

So where are we now? Confused. Liu said he gave substantial money to the Labour Party. The Labour Party says it has no record of it, and hasn't reported any donations from Liu.
But it's quite possible that everyone is telling the truth. The money could have been stolen. That would mean Liu gave the money but Labour never received it. Charity auctions and the like are often chaotic and it is too easy to have no one properly in charge of recording and receipting all payments and donations. This is especially so in political events. Volunteers are enthusiastic but not necessarily experienced and politicians are anxious to stay well away from money changing hands.
Indeed, a big part of Cunliffe's problem - and Banks' and Williamson's - is that politicians shy away from fundraising details precisely to avoid the perception that cash influences decision-making.

It is indeed possible that no one in Labour actually saw any of the money donated by Liu; possible, but highly improbable, we would say. We base that on information that we have heard in the last week; information which may or may not have got as far as Jared Savage from the NZ Herald. If even some of it is correct, Labour had better hope that no one has broken ranks. 

And Donghua Liu lawyering up, and giving documents to Paul Davidson QC whilst seeking financial records from his homeland ought to be worrying to Labour. What is in the financial records that Mr Liu is so anxious to share with his lawyer?

Hide closes, with a message that might send shivers up David Cunliffe's spine:


The safer course of action for the Labour Party would be to say it was treating the matter seriously. That would mean thanking Liu for coming forward with his information and inviting the police to investigate. The police could try to trace the money, letting Cunliffe off the hook. He would have done everything by the book. He would be open and upfront. It would also kill the story. He couldn't comment while police were investigating.
But Labour didn't do that. It denied and attacked.
There's a reason politicians do the things they do. Cunliffe couldn't be sure what the police would find. Calling in the police runs the risk of finding out more than Cunliffe wants to know.

David Cunliffe ought to remember that a "deny, deny, deny; attack, attack, attack" strategy is akin to poking a stick into a wasp's nest. As leader of the party, David Cunliffe is the one most likely to be stung if the wasps decide to fight back, and he is forced to defend, defend, defend.

There's an old saying in politics; never ask a question you don't already know the answer to. That would appear to be a strategic mistake on the part of Mr Cunliffe, and those who advise him, or who blog on Labour's behalf. It is going to be fascinating to see where this story goes, but a tweet yesterday from Herald editor Tim Murphy provides a clue:


We'd say the Donghua Liu saga still has some surprise twists and turns, and the exhortations to "move on" from the likes of Greg Presland towards the end of the week just gone may have been more in hope than anything else.  



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