Cash-row result rocks Labour

Almost 30 per cent of Labour supporters think it is acceptable to call Labour "corrupt" for using public funds to finance its pledge card, according to a Herald-DigiPoll survey.

While most Labour supporters (62.4 per cent) disagree, the fact that 28.1 per cent think it is right for National leader Don Brash to describe their party as "corrupt" will be a worry for Labour strategists.

The result also reflects anecdotal evidence from Labour MPs who have told the Herald that many of their supporters believe any unlawfully spent money should be repaid.

Just over half of the voters polled at the weekend (51.8 per cent) believed it was right to call Labour corrupt, but 38.4 per cent thought it was not.

The row between Labour and National over last year's election spending - and in particular Labour being labelled as "corrupt" - has stepped up the warfare between the two major parties.

National's relationship with the Exclusive Brethren, Labour's plans to limit election donations, Dr Brash's relationship with an Auckland businesswoman, and rumours about the Prime Minister's husband, Professor Peter Davis, have consumed politics in the past month.

Auditor-General Kevin Brady issued a draft finding last month concluding that almost all parties had unlawfully used taxpayer funding for electioneering.

National, the Maori Party and most recently the Greens have paid or pledged to pay back the money.

Prime Minister Helen Clark yesterday criticised the Greens for acting before the final report came out.

"I'm a little surprised that any Green jumped even before there is a final report out," she said on Newstalk ZB.

Earlier on TVNZ's Breakfast show, she refused to rule out repaying the money - as senior minister Pete Hodgson has - saying the Auditor-General needed to explain why parties should make repayments if the same type of funding had been ticked off after the 2002 election.

"It is very hard to see why you would pay if the same spending has been deemed to be okay in the past under the same rules. He needs to explain why he is taking a different view."

She believed that retrospective validating legislation would be required whether or not a party repaid money.

Labour is preparing to take a case to Mr Brady this week, challenging the draft findings.

Coalition calculations

Under the poll scenario, National would have 57 seats, well ahead of Labour's 47. Despite this National would need the Greens (8 seats), or the Maori Party (5 seats) to govern. Even with Act (2 seats) and United Future (1 seat), National would still fall short of the 61 seats required, in a Parliament which would have an overhang of one seat and therefore 121 seats.

Labour could try to stitch together a deal - it would need the Greens, Progressives, and Maori Party on board.

With no electorate seat and a vote that falls short of the 5 per cent threshold, New Zealand First would be out of Parliament under the poll scenario.