Public purse closes on election expenses

Photo / Glenn Jeffrey

The agency that oversees politicians' spending has new powers to call in the debt collectors on MPs and parties found to have unlawfully spent public money, preventing a repeat of the aftermath of the 2005 election.

Parliamentary Service can recover as a debt any spending it is later decided a political party or MP was not entitled to - such as loosely disguised election advertising. It will no longer rely on political pressure for repayments to be made.

After 2005, six of the seven parties deemed by the Auditor-General to have unlawfully spent a total of $1.17 million of parliamentary funding on campaign advertising paid back the sums voluntarily with only NZ First ($59,906) holding out.

But there was no legal obligation to do so and some were hesitant, agreeing to repay only under significant public pressure.

One of the changes in the electoral law reforms passed late last year gives Parliamentary Service power to require repayment for any amounts it is later found the parties were not entitled to spend, even if it was inadvertent.

Parliamentary Service must approve any advertising the parties claim public money for. Now much tighter rules will apply in the three months before an election, effectively barring parties from using public money on brochures and advertising to boast about their policies or promote themselves. The most cited example of such advertising was Labour's pledge card.

In previous years, public funding was refused only for direct electioneering. This year the wider test of "election advertising" will apply during the election period, covering any material which could sway a voter and effectively ruling out all but the most mundane of materials, such as signs on electorate offices and advertisements for electoral clinics.

At the last election, Labour's expenses included about $74,000 for its Budget leaflet and the Greens included $187,000 of Parliamentary Service funded advertising in its total $1.5 million of election spending. But the regulated period was much longer in 2008 - going from January 1 - and most parties were taking the precautionary approach by listing borderline expenses as election-related.

The restrictions will exacerbate the effect the recession is expected to have on donations to political parties and the costs to the parties of the three byelections held during the term.

Labour president Andrew Little said there was a greater reluctance to donate, which many attributed to the recession.

"We are getting a steady flow but they are more modest by comparison to those which are reported in the election returns [of more than $15,000]."

National Party president Peter Goodfellow was overseas.

2011 DONATIONS
(Previous election thresholds in brackets)

* Anonymous donations allowed up to $1500 ($1000).

* Donations up to $15,000 ($10,000): party has donor details but no public disclosure.

* Donations more than $15,000 ($10,000): disclosed in post-election/ annual return.

* Donations more than $30,000 ($20,000): disclosed within 10 working days.

15 DONORS FROM LAST POLL FIT INTO NEW ZONE OF SECRECY

The public would not know about 15 of the donors in the last election if the new $15,000 threshold had applied then.

In changes to donations disclosure thresholds made last year, parties have to disclose only donors of more than $15,000 - higher than the previous $10,000 threshold.

If the $15,000 threshold had applied last election year, 15 donations would remain undisclosed because they were between $10,000 and $15,000. They include six donations to each of Labour and the Green Party and one apiece to National, Act and NZ First. A $12,000 donation from Sir Patrick Hogan to NZ First would be undisclosed as would donations from four Green MPs, who donate part of their salaries to the party.

The Labour donations include $11,250 from artist Judy Millar, $11,000 from Stanley Palmer, $14,900 from bro'Town makers Firehorse Films, $12,000 from the Dairy Workers' Union, $10,000 from former leader Helen Clark and $10,000 from Annette King's husband, Ray Lind. National's was from an individual - Grant Biel.

Its five other big donors all gave more than $20,000.