2005 Election
As the 2005 general election approached, Peters did not indicate a preference for coalition with either of the major parties, declaring that he would not seek the "baubles of office". He promised to either give support in confidence and supply to the party with the most seats, or to abstain from no-confidence votes against it, and that he would not deal with any coalition that included the Greens. He pledged to keep post-election negotiations to under three weeks following criticism of the seven week marathon it took to broker a deal with National in 1996.
In the election, some of New Zealand First's traditional support moved to National. Peters himself narrowly lost his longstanding hold on Tauranga to National MP Bob Clarkson, but New Zealand First did well enough to receive seven seats (down from 13 in 2002), allowing Peters to remain in Parliament as a list MP. Soon after the 2005 election Peters launched a legal challenge against Clarkson. The case alleged that Clarkson had spent more than the legal limit allowed for campaign budgets during elections in New Zealand. This legal bid ultimately failed, with a majority of the judges in the case declaring that Clarkson had not overspent.
In negotiations with Clark after the election, Peters secured the ministerial portfolios of Foreign Affairs and Racing in the Labour-led government, a move which apparently lay at odds with his earlier promise to refuse the "baubles of office". He was a member of the Executive Council, although he was outside cabinet. He was able to criticise the government in areas not related to his portfolios, which experts said was an unprecedented situation. Considering his previous comments relating to immigration, there were mixed reactions from commentators. His selection for the Foreign Affairs portfolio created some measure of surprise within the country and beyond. National Party leader Don Brash said the choice was "astonishing", because "the whole region distrusts Winston Peters – Australia, Asia . I think putting him as minister of foreign affairs does huge damage for our international reputation." The Age, in Australia, expressed surprise that the position had been given to an "outspoken, anti-migrant populist nationalist".
Allegations concerning Peters' involvement with Simunovich Fisheries and former Member of Parliament Ross Meurant, who was engaged as both adviser to Peters and in undefined business activities with Peter Simunovich (managing director of Simunovich Fisheries), culminated in a Parliamentary Select Committee enquiry into what became known as the 'scampi enquiry'. The enquiry cleared Peters, Simunovich and Meurant of any wrongdoing.
In October 2006, Peters affirmed that he would continue to serve as leader for the 2008 election.
Read more about this topic: Winston Peters
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“Democracy substitutes election by the incompetent many for appointment by the corrupt few.”
—George Bernard Shaw (18561950)