Auditor-General's comment on election spending 'unwise'

Peter Dunne

The Auditor-General has been criticised for agreeing to an interview in which he said he had forewarned political parties to be careful with their election spending.

A clearly unamused Prime Minister Helen Clark yesterday stopped short of describing the Auditor-General's interview in yesterday's Herald as inappropriate.

But she did say she was "surprised" that Kevin Brady chose to give the interview before he had completed his final report into taxpayer-funded political advertising in the three months before last year's election.

"I was rather surprised by that. But I'm waiting for the final report," she said.

United Future leader Peter Dunne went further: "I think to have commented publicly half-way through the process in that context is somewhat unwise."

The Auditor-General has been hogging the political spotlight since the leak of his draft view that much taxpayer-funded party advertising for last year's election was unlawful.

The finding triggered a furore over whether parties should pay back the money in dispute, or if - as Labour and several other parties contend - the Auditor-General is changing the rules after the event.

In Mr Brady's interview he said he felt he had clearly forewarned political parties to make sure their spending was appropriate. He also challenged the Prime Minister's argument that if a problem with unlawful expenditure existed for three months last year, it might have amounted to $350 million over 15 years.

Mr Brady appeared unfazed by the political criticism of his interview, and granted several more to other media outlets yesterday.

He said he did not feel at all under pressure.

"It's a free country, that's fine."

Helen Clark yesterday stuck to her stance that the "rules appear to be being changed retrospectively".

"It's appropriate to say to people to be careful about their spending. But when parties are spending exactly in the same way, within the same rules they've always understood, it's to be expected that people are a little surprised after the event when it's suggested that the rules should be different from what they always have been."

Mr Dunne also expressed disappointment that the Auditor-General had spoken in public at this point.

"It's a bit like a referee saying to the TV referee, 'That was a try. Can you just confirm it was scored?' It's a cart before the horse thing. And unfortunately it does not inspire confidence in the impartiality of the final report."

Mr Dunne late last week criticised Mr Brady and former Solicitor-General Terence Arnold, QC, for not consulting MPs before reaching their views.

Yesterday he said it was unfortunate that the focus was now less on "getting to the bottom of the issue and much more about him [Mr Brady] not being seen to have either backed down or been heavied."

Labour has talked about putting forward retrospective legislation to validate any expenditure the Auditor-General concludes in his final report is unlawful.

The Prime Minister said such legislation was not discussed at yesterday's Cabinet meeting.

National has paid back $10,000 it says was identified in the Auditor-General's draft report as unlawful spending. The Parliamentary Service yesterday confirmed it has accepted and banked the party's cheque.

- Additional reporting by NZPA