Others must refund cash, says National

National has demanded that Labour explain why health providers who wrongly claim public money are expected to pay it back - when Labour won't pay back money it spent on its pledge card.

In a fresh angle to National's attacks over election spending, the party's MPs yesterday moved to highlight examples where Government departments expect people to pay money back.

National's health spokesman, Tony Ryall, drew attention to efforts being made to recover public money that was wrongly claimed by doctors, pharmacists, rest-home operators and other health providers.

National's deputy leader, Gerry Brownlee, also asked if it would be acceptable for the owner of a small business in dispute with Inland Revenue to argue that the auditors of his accounts got it wrong, and to refuse to pay.

Labour has consistently maintained that the $446,000 of taxpayer money it spent on its pledge card before last year's election was within the rules.

But Auditor-General Kevin Brady has made a preliminary finding that much of the taxpayer-financed party advertising before last year's election was unlawful - and the pledge card is believed to be included in that.

On Tuesday Labour strategist Pete Hodgson said the party would not repay the pledge card money even if the Auditor-General's final view was that it was unlawfully spent.

Mr Hodgson was yesterday back in the spotlight in his role as Health Minister, facing questions in the House from Mr Ryall about health providers paying money back.

In response to a question, Mr Hodgson confirmed that a "significant amount" of public money that was misused had been repaid to the Ministry of Health.

Asked by Mr Ryall if providers who wrongly claimed public money - either deliberately or inadvertently - should be expected to pay it back, Mr Hodgson said "generally, yes".

But in an effort to offset the obvious link being made to Labour's situation, Mr Hodgson said the ministry "is always careful to ensure that people who may be in breach of rules are judged solely on the rules that were in force at the time, not tighter rules drafted after the event".

Mr Hodgson said the Labour Party "remains resolute that we have not ripped off anyone".

Prime Minister Helen Clark also displayed confidence, saying her party had "played within the rules".

She questioned Auditor-General Kevin Brady's early view that spending was unlawful, and said he needed to explain why he had given an unqualified audit certificate to "the same spending under materially the same rules three years ago".

Mr Ryall shot back with a claim that many of the health providers who were being asked to pay money back were audited, and were given clean bills of health.