Prime Minister stands firm over election spending

Helen Clark

Prime Minister Helen Clark has attacked draft findings of the Auditor-General on taxpayer-funded publicity, saying he is changing the rules "after the ref has blown the final whistle".

But while she says the views challenge accepted practice, National says the rules are clear and Labour just breached them.

Helen Clark is clearly unhappy at the prospect of the Auditor-General's draft finding - based on a Solicitor-General's opinion - that hundreds of thousands of dollars worth of taxpayer-funded party advertising has been unlawful, including Labour's pledge card last election.

But the finding could have implications on spending by parties outside the election campaign period as well, and a tightening of the criteria is likely.

Helen Clark hinted at her post-Cabinet press conference yesterday that she will resist any recommendation that the parties pay back Parliament for past infringements.

"Everyone is very happy to take guidance for the future but if parties have been spending in accordance with Parliamentary Service rules and having that expenditure authorised by Parliamentary Service, then it is exactly as Peter Brown of New Zealand First has said:

"[It's] a bit like someone coming along and wanting to change the rules of the game after the ref has blown the final whistle."

Helen Clark said it was wrong to focus on Labour's pledge card - which cost the taxpayer last election $446,000, a sum which, on term deposit, would have attracted about $30,000 interest in the past year.

"These opinions appear to overturn longstanding practice in expenditure of parliamentary party budgets."

It is rare for Cabinet ministers, let alone the Prime Minister, to challenge the findings of such independent officers. But she has been joined by other parties.

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.

National MPs have been pinged individually for campaign literature.

Helen Clark said the Auditor-General's final report would have to be carefully looked at for its implications.

She said the idea of parliamentary funding for publicity was so parties and MPs could promote their policies.

"If a very narrow view is to be taken of that - that somehow some political advantage might be gained from someone promoting their policies - then quite frankly, apart from printing a calling card it's very hard to see what you could do with the money."

National appears to be the party least hit by the draft findings.

Leader Don Brash took a more conservative approach to such expenditure than his predecessor, Bill English, whose foreshore billboards were paid for from the public purse.

Labour promoted its Working for Families policies on bus-stops, and Act's bright-yellow slogan-covered bus was funded by Parliament.

National deputy leader Gerry Brownlee said he sat on the committee that devised the rules and they were clear. "For people to say now that they are not clear is just quite wrong."


'Welcome clarification,' says university legal expert

Auckland University constitutional law expert Bill Hodge welcomed a "pretty straightforward" opinion by former Solicitor-General Terence Arnold, QC.

He said approvals of advertising for "parliamentary purposes" seemed to have become too open-ended in the direction of election spending, which was restricted by the Electoral Act.

The legal opinion - part of a draft report by Auditor-General Kevin Brady - gave welcome clarification which he believed was needed as a safeguard against electoral corruption.

Dr Hodge said Labour's $446,000 pledge card, which is in question in light of the opinion, was not a good look for the party when an "odour of corruption" lingered over its MP Taito Phillip Field's dealings with illegal immigrants.

Another constitutional lawyer, who did not want to be named, said initial reports suggested a complete change from previous accepted practice which allowed any spending as long as it had a parliamentary component.


YOU BE THE JUDGE

THE RULES SAY ...

Operational resources are not provided and may not be used for ...

"Producing or distributing promotional or electioneering material by mail or other means of communication for the purpose of supporting the election of any person or the casting of a party vote for any political party."

THE PLEDGE CARD SAYS ...

"Labour has shown we can make MMP work. In government we have listened. We have acted in the interests of all New Zealanders to build a strong economy, a better quality of life for all, and to preserve our unique environment and lifestyle.

As Prime Minister, I am making seven more commitments to you and your family. They are critical to our responsible plan to take New Zealand forward.

My commitments to you ... (the seven promises follow)"