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Home / New Zealand

Employers' KiwiSaver ads may fall foul of finance act

Claire Trevett
By Claire Trevett
Political Editor·NZ Herald·
28 Jul, 2008 05:00 PM2 mins to read

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KEY POINTS:

The Electoral Commission will consider whether the Employers and Manufacturers Association has breached electoral laws with advertisements opposing changes to KiwiSaver.

The advertisements, which have run in at least three major newspapers, target a proposed law change that will stop employers offering higher wages to workers who are
not members of KiwiSaver.

The association is not listed as a third party, which is required under the Electoral Finance Act of any group or person who intends to spend more than $12,000 on election advertising for or against a political party.

Under the law, an election advertisement includes one that refers to a particular party's policies, regardless of whether it names the party.

Association chief executive Alasdair Thompson said he did not consider the ads, headed "Stop Mallard's attack on workers", were covered by the act.

It was part of the group's normal work to lobby against law changes it believed were unfair.

The advertisements protest against plans by Labour Minister Trevor Mallard to legislate to stop employers paying different wages to employees who are not in KiwiSaver.

Mr Thompson said the ads did not refer to the election. They related to current plans for legislation rather than election issues.

Electoral Commission head Dr Helena Catt confirmed that a complaint had been received, but said the commission would not consider it until its August meeting.

It is due to meet today to discuss other issues, and is expected to make a final decision on whether the Engineering, Printing and Manufacturing Union is able to list as a third party.

The union is due to start a major campaign on workers' rights this week, including nationwide rallies.

Union secretary Andrew Little said the commission's decision would not affect the campaign, which he did not believe was electioneering.

"The burden of being a registered third party is there are quite significant accountability requirements and if you get it wrong the penalties are quite severe.

"So in many respects, it's a relief if we are not registered as a third party."

THE TEST

* The Electoral Commission has to decide whether the Employers and Manufacturers Association's newspaper ads encourage voters to vote for or against "a type of party" indicated by the views or policies expressed in the ad.

* The advertisement can breach the Electoral Finance Act even if it does not name any party or candidate.

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