KEY POINTS:
The Electoral Commission has backed down on its criticisms of the Electoral Finance Bill, saying clarification of confusing parts of the bill had set it at ease.
Dr Helena Catt, the commission's chief executive, yesterday lowered the red flag which the commission raised over a clause allowing MPs to do work and send out publications - "in his or her capacity as a member of Parliament" - without including it as an election expense.
Justice Minister Annette King gave a definition of the clause in her speech on the second reading of the bill, which Dr Catt said was enough of "a starting point" for the commission's needs.
The commission had initially warned it could not advise on the meaning of the clause, saying it was open to wide interpretation and would lead to increased legal action during the election campaign.
But Dr Catt said Ms King's definition gave "some indication" of what it meant.
"It won't be plain sailing. There are still things we will have to work out but there is no longer anything about which we are saying 'there's a big risk here'.
"We think we can work this out with good will for all concerned."
Working out how the clause applied in real-life circumstances would also depend on political parties agreeing.
The commission was now developing case studies of situations that could arise and would work with the parties to try to reach a mutual agreement on the application.
"[King's definition] gives us a starting point for working with parties' secretaries to come to an understanding of what it means. The intention is to work with them so there is a shared agreement on it."
The select committee report said the definition could not be put in the bill itself in case it affected other laws using the same phrase.
But there has been no backdown on the commission's other issues, including its recommendation for a higher cap before third parties had to register.
The commission had asked for a cap of $40,000 instead of the present $12,000, because it would be easier for the commission to "police" third-party advertising to ensure no groups were avoiding registration.
It had suggested a total spending limit of $250,000 instead of the present $120,000 after analysing how much advertising could be bought for different sums of money.
Dr Catt said the end decisions were policy issues for the Government.
A spokesman for Ms King said the minister would meet the commission soon to discuss its concerns.
The commission's advice also suggested removing the cut-off date after which third parties could no longer register, saying it would mean some groups were unable to properly respond to issues that rose late in the campaign because they had not registered.
The cut-off date is on writ day - about one month before the election - although Ms King is proposing an amendment to make it about one week later.
KING'S RULES
According to Justice Minister Annette King, the Electoral Finance Bill means MPs can:
* Take part in the business of the House and electorate, and in other representational duties.
* Work as Government members or Opposition spokespeople if it "interacts with the business of the current Parliament".
MPs can't:
* Make statements of policy outside the House that are intended to be enacted by a future Parliament.
* "Induce votes" by making policy statements tied explicitly to voting, the election or an electoral outcome.
