National pays back unlawfully spent election campaign money

Don Brash

The National Party has paid back money the Auditor-General Kevin Brady believes it spent unlawfully on the election campaign.

National Leader Don Brash said Mr Brady identified $10,588.17 of Parliament Service's funding to seven National MPs as being spent on areas outside the parliamentary rules.

The Solicitor-General has suggested taypayer-funded party advertising is unlawful and that opinion is cited in the Auditor-General's draft finding.

Most political leaders have questioned Mr Brady's ruling saying it overturns years of accepted practice.

They argue that Parliament Services had approved the spending to promote party policy and Mr Brady was trying to retrospectively change the rules.

New Zealand First leader Winston Peters said the Auditor-General's view could be challenged in court.

He said his party had sought prior approval from Parliament's administrators, Parliamentary Service, for advertising expenditure.

Meanwhile, Greens co-leader Jeanette Fitzsimons said her party had been told a $20,000 newsletter it published was cited as breaching the rules - yet the party had put it out for years.

But Dr Brash said the rules were clear.

"The funds are appropriated on the explicit understanding that they are not to be used for electioneering purposes," Dr Brash said.

"If Labour's pledge cards and brochure - both released just weeks from the election - are not electioneering then I don't know what is."

Dr Brash called on Labour to do the same as National and pay back the $446,000 spent on the pledge card and brochure.

But Deputy Prime Minister Michael Cullen said National was grandstanding and if its position was genuine the party should pay back millions of dollars not just $10,000.

Dr Cullen believed that Mr Brady's interpretation of spending rules meant virtually every cent spent by every party on communications over many years had been deemed inappropriate.

"The latest National publicity stunt, paid for by taxpayers - the laughable wastewatch website - is outside the rules," Dr Cullen said.

"National should begin by paying that money back, and then follow up by reimbursing every cent it's spent in the last 10 years."

Dr Cullen said no one had suggested anyone pay back any money and Mr Brady's report was still a draft.

Mr Brady investigated spending by all political parties after a raft of complaints and has since written to Mr George criticising the way expenses were signed off when, in Mr Brady's opinion, they were not for parliamentary activities.

Among the items charged for were flags, a protest banner, pens, signage, photographs and bags.

Under the Public Finance Act, money spent outside the reasons it was appropriated for is unlawful.

Mr Brady has the legal power to insist that the minister responsible - in this case Speaker Margaret Wilson - issue a statement saying the spending was unlawful and what was intended to be done about it.

The responsible minister can disagree, but has to state why.

- NZPA