Sir Howard supports Owen Glenn 

Singer Sir Howard Morrison has spoken out in defence of Owen Glenn, the billionaire transport magnate at the centre of an embarrassing donations row for the Labour Party.

Glenn has said the government is considering giving him a job in Monaco, prompting criticism he's being rewarded for generous donations to Labour.

Now Sir Howard, a guest at Glenn's 60th birthday party on the Auckland viaduct, has come out in support of him.

In the wake of the new electoral donation laws, questions were raised in parliament on Tuesday as to whether the transport magnate was being rewarded for his generous donations to Labour.

The champagne flowed and balloons showed Glenn's true Labour colours at the party on Tuesday night. But it had been a tough day.

"I think he made some big mistakes of exaggerating the situation that might have happened in a free for all discussion that shoot the breeze, and he probably got carried away, probably a sauvignon blanc too many, I don't know," says Sir Howard.

Glenn's revelation that he's being considered for the role of Honorary Consul in Monaco put his political party under fire.

The controversy comes amid claims he is being rewarded for generous donations he has made to Labour - $200,000 in 2004, $300,000 in 2005 and a $100,000 interest free loan in 2006.

"Certainly there has been no conversation by me with Mr Glenn on this matter. I am aware that he has had breakfast with Mr Peters and it has been discussed. Where in the ether it came to me I do not know," said Prime Minister Helen Clark.

National leader John Key said it was all looking murky.

"Does she agree with the rest of the New Zealand public that this is looking very murky indeed?" asked John Key, National leader.

Clark hit back, criticising National over donations.

"The only thing that looks murky is the National Party putting all its money into secret trusts including by the end of December last year scurrying around the anonymous donors," she said.

Questions were also raised about Glenn receiving a New Zealand Order of Merit. But Sir Howard says he nominated Glenn three times in awe of his $7.5 million dollar gift to Auckland University's Business School. A building named after him will be opened on Thursday.

"Nobody's put that amount of money in any charity to my knowledge in this country," says Sir Howard.

One News' request for an interview with Glenn was declined but Sir Howard spoke out for both sides.

"To have this hurling about in parliament, it's just people looking for blood."