Leaflets not electioneering, says Peters

New Zealand First is likely to recall undistributed leaflets from its branches to back its case disputing the Auditor-General's findings that it unlawfully spent $157,934 last election.

And it hopes that when leader Winston Peters presents the evidence to the Auditor-General it will avoid a legal challenge of the findings.

In other developments, Labour's ruling body yesterday authorised president Mike Williams to seek a one-off levy from MPs tomorrow to fund virtually half of its $824,524 spending.

And United Future will decide tomorrow how to tackle the $71,867 identified as unlawful.

The Green Party has said it will pay its $87,192 within this financial year.

Mr Peters told his party conference yesterday that last week began with North Korea detonating a nuclear bomb and concluded with the Auditor-General "dropping one of his own".

He waved a handful of the leaflets about during his speech and said they set out New Zealand First's policies.

The 12-page booklets were produced in April last year and were intended for distribution at any time during the election cycle but because the bill for them was presented during the three-month pre-election period, their costs were included in the party's total.

Once the evidence is collected, it is expected the party will appeal to Auditor-General Kevin Brady to reconsider his finding. Mr Peters and Mr Brady have not yet met.

Party president Dail Jones hopes the party will not have to challenge the findings in court.

"Going to court is a sign of failure in a way. If you settle it before you go to court that's a lot better than wasting your client's money going to court."

Mr Jones said he was not sure of the sums involved but that if, for example, 60,000 pamphlets had been printed for $60,000 and 40,000 had been distributed during the campaign, then the party would argue that $20,000 should come off the total. "All around, let's hope common sense will prevail."

United Future leader Peter Dunne said his party was not trying to play games on the matter. "We are just taking it steadily and calmly."

He said United Future would make its decision independently of whether New Zealand First took a legal challenge.

Labour president Mike Williams said he would ask Labour MPs tomorrow for a one-off payment of 5 per cent of their gross annual salary.

That would raise about half of what Labour has agreed to repay - although it assiduously avoids the term "repay", preferring "refund", a term that implies no obligation.

The question of how much should be paid by MPs intending to retire during the term was being discussed with the party whips, he said.

He estimated that, with pledges already in, between $100,000 and $200,000 had been raised already. An art auction in Christchurch on Saturday had raised $44,000 and the party had set up an 0900 line for instant donations of a minimum $10.

Mr Williams said the party would accept anonymous donations - which it has criticised National for accepting - because they were legal at present.

Deputy Prime Minister Michael Cullen has labelled retrospective legislation validating the expenditure as a confidence issue because, technically, part of it relates to supply in this financial year.

But it won't be seen as an ordinary confidence issue because, in the unlikely event of it not passing, the Government would not realistically be expected to resign.

New Zealand First has said it will back it, and the Greens have indicated they will abstain, meaning there will be enough votes to pass it.