Party leaders reacted rapidly to today's report by Auditor-general Kevin Brady into election spending:

Helen Clark, Labour

"Labour has strongly stated its case, as was its right. The Party welcomes the Auditor-General's finding that inadequate guidance has been available to MPs and parliamentary parties on what constitutes appropriate advertising, particularly in the pre-election period.

"The Auditor-General' investigation has opened up a number of issues relating to how politics is conducted.

"Refunding the money is one step in a series of responses which need to be taken to ensure public confidence in the political process. The government will also seek to introduce the validating legislation which, we are advised, is required under the Public Finance Act and which the Speaker has recommended.

"Clear rules are also needed governing parliamentary funding for communications going forward.

"The government would also be drafting legislation to bring greater transparency to political funding and campaigns.

"We do this not to discourage participation but rather to encourage it. Politics is a public business and it requires transparency. New Zealanders are far more likely to want to get involved in and support politics if they know our system is open, transparent, and clean."


Don Brash, National

Don Brash said: "Labour has been caught red handed with its fingers in the till.

"National is deeply saddened that it has taken more than a year for Helen Clark to reluctantly do the right thing. Labour has led a dirty campaign punctuated by threats and bullying.

"Public confidence in Parliament has been dented by the attacks on officials who have tried to hold Labour to account.

"In the process Helen Clark has tarnished the reputation of those who were charged with protecting the integrity of our democracy.

"I congratulate the Auditor-General for not succumbing to Helen Clark's threats and thank the chief electoral officer, the electoral commission and the solicitor general for quite properly pursuing this serious matter.

"What needs to happen now is that Helen Clark needs to take responsibility and she must apologise to the officials, and the media organisations that her Government has attacked and threatened.