Grilling continues over John Banks

Updated at 8:09 pm on 26 September 2012

The Labour Party has continued to pursue the Prime Minister over his handling of the John Banks' anonymous donations affair.

Labour questioned John Key in the House on Wednesday about his decision to keep the ACT MP on as a minister.

Its deputy leader, Grant Robertson, asked John Key whether he stands by his statement on Tuesday that the police said Mr Banks had complied with the law, when he filed a false return for his Auckland mayoralty bid.

Mr Key said what he should have said is that he believed Mr Banks had complied with the law.

Mr Robertson listed events in the report which says Mr Banks received a cheque by hand from Sky City's chief executive, issued a receipt for it and then listed the donation as anonymous, and asked whether that complied with the law.

Mr Key replied again that was his own belief and that the police could not prove that Mr Banks had known the return was false.

Next story in Political: Govt strongly defends jobs' record