Brash pays up, challenges Clark to follow

National's cheque for its MPs unlawful spending.

National has paid back more than $10,000 of taxpayer money its MPs unlawfully spent on capturing votes - but the party is facing claims that its cheque should have been for millions.

In a move designed to seize the moral high ground, National leader Don Brash yesterday sent a cheque for $10,588.17 to Parliamentary Service.

The cheque, hand delivered shortly after noon, repays the pre-election spending of seven National MPs that an Auditor-General's draft finding suggests was unlawful.

Political parties have been reeling since the Auditor-General delivered his view that much taxpayer-funded party advertising at the last election was unlawful.

The spotlight is now on Labour's $446,000 pledge card, and other items sent out by various political parties.

National has stumped up the cash to clear its name from its party funds rather than demanding that the unnamed individual MPs who broke the rules pay it back personally.

Dr Brash said that all expenditure from National's leader's office was found to have complied with the rules.

The rules prohibit funding material "for the purpose of supporting the election of any person or the casting of a party vote for any political party".

Dr Brash said yesterday that while the breaches of a few of his MPs may be minor, "they are nevertheless breaches".

"I now challenge Helen Clark to do the same and authorise the repayment from Labour Party funds of the $446,000 it unlawfully spent last election on the pledge card and brochure."

There appears little chance of that happening any time soon.

Labour attacked National's move as "grandstanding", and said if the party was serious about the rules, it should be repaying millions.

"The new interpretation of the rules by the Auditor-General and Solicitor-General means that virtually every cent spent by every party on communications over many years has been deemed inappropriate," Deputy Prime Minister Michael Cullen said.

"That is what every party in Parliament, bar National, is objecting to."

National is indeed isolated in its stance to repay the disputed money, with several other political parties - including Labour - questioning the Auditor-General's draft finding.

They argue that they sought prior approval from Parliamentary Service for their spending, and that the Auditor-General is effectively changing the rules after the event.

New Zealand First leader Winston Peters has indicated the finding could be challenged in court, and is known to be drafting a letter to the Auditor-General to contest his view.

It is understood that parties other than National have also been discussing the implications of the draft finding behind closed doors.

Even Act leader Rodney Hide, a friend of National in many areas, yesterday came out against Dr Brash's political move to pay back the money.

Mr Hide suggested National needed to take a wider view of what the Auditor-General's finding could mean.