Nats oppose scramble to legalise spending

The National Party will not back a move to retrospectively validate election spending the Auditor-General has said was unlawful.

National leader Don Brash's decision sets the stage for a fierce debate when the Government brings the bill to Parliament this afternoon.

The legislation will still be passed, because New Zealand First and United Future confirmed their support today, but Dr Brash said the bill was "nothing more than a cynical exercise in self-interest".

He said it was clear some parties in Parliament did not intend paying back what they owed "and those parties intend to change the law to remove their obligation to do so".

New Zealand First is now the only party which has not committed to paying its election overspend back. Leader Winston Peters says when he is convinced the spending was wrong, then they will pay it back.

Dr Brash said National only received a copy of the bill this morning and said the Government intended ramming it through Parliament under urgency without adequate analysis and despite conflicting legal opinions.

Deputy Prime Minister Michael Cullen will introduce the bill to Parliament this afternoon, and it will be debated under urgency.

The votes of NZ First and United Future are necessary to ensure the Government's majority in Parliament.

The legislation is being introduced because Attorney-General Kevin Brady ruled that seven of Parliament's eight parties unlawfully spent taxpayer money on their election campaigns last year.

Most parties have agreed to pay back the money, but just refunding it does not make the spending lawful. United Future is the latest to say it will repay the money.

NZ First leader Winston Peters said today Mr Brady's ruling on what was "electioneering" was very wide.

"It concerns whether or not you can conduct any business at all that concerns government in the three-month period leading up to an election," he said on National Radio.

"If, for example, you were going off to open a pulp factory and halfway through you mentioned your party, just by reference, the cost (of the trip) would go straight into campaign costs."

Not passed

Mr Peters suggested that if the validation bill was not passed, MPs could find themselves having to pay for their own transport.

United Future leader Peter Dunne said Parliament's Speaker, Margaret Wilson, had noted that under some interpretations all the activities undertaken by MPs were effectively caught by Mr Brady's ruling.

"I don't think anyone intended that, and so therefore legislation to clarify the position is not only desirable but absolutely necessary," he said.

Parliament is expected to debate the bill up to 10pm tonight and, if necessary, sit again at 9am tomorrow to pass it.

At a caucus meeting before Parliament sits at 2pm, Labour MPs discussed how they will pay back the $768,000 Mr Brady said their party spent unlawfully.

They agreed to stump up about half the amount themselves through a 5 per cent levy on their salaries.

They already pay an annual 3.5 per cent to the party, but Prime Minister Helen Clark said yesterday she expected her MPs would rally round to raise the funds.

Party president Mike Williams is putting out an appeal to members as well, and Helen Clark said there had been "a very positive and warm response".

- NZPA, NEWSTALK ZB