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Labour says a taxpayer-funded booklet declared by the Electoral Commission to be an election advertisement will be counted against the party's election spending cap.
Last week the Electoral Commission ruled that We're Making a Difference, paid for out of Parliamentary Service funding, was election advertising and breached the Electoral Finance Act.
The party was given a warning because, as an election ad, it should have included an authorisation from the party's financial agent, with that person's home address.
On Thursday National deputy leader Bill English asked whether the party would count the cost of the booklet against its election spending cap, and Deputy Prime Minister Michael Cullen said it was separate.
"Matters that are properly authorised as being for parliamentary purposes do not count as election advertising for the returns of expenses," Dr Cullen said.
But yesterday Justice Minister Annette King conceded the point - although she claimed only one of the booklets was handed out this year.
"It has been ruled as an election advertisement by the Electoral Commission, any of those pamphlets that have been distributed this year would have to count against the Labour Party," she said.
Ms King said the booklets were published and distributed last year, but a single copy had been inadvertently handed out this year and would be counted as an election spending expense: "I expect it could be around 10 or 20 cents."
National immediately disputed that, saying a member of the public told them they got five copies from Labour MP Damien O'Connor's office.
Labour's care over literature that is potentially election advertising was evident in an email from the office of Prime Minister Helen Clark sent inadvertently to all MPs instead of to Labour MPs.
It said the final version of flyers about April 1 policies had the authorisation of party secretary Mike Smith.
"They are safe for distribution."
Any MPs who had the mock-up of the flyers should destroy them, said the memo from communications adviser Katherine Allen.
"Also for added safety they should not be photocopied."
Labour countered the criticism, saying National had broken the rules with banners on its website telling people to vote National.
Labour is referring the website to the Electoral Commission. National's website is authorised but the policy pages with the "Party vote National" statement on them are not.
National said Labour had at the weekend deleted from its website references to union affiliates which showed the close relationship between Labour and the unions.
Last week the Electoral Commission said the Engineering, Printing and Manufacturing Union could be listed as a third party.
Mr English said the law was designed to stop groups closely allied to political parties registering to run parallel campaigns yet the union was being allowed to.
Ms King said it was the commission's decision and everyone knew Labour's links to the union movement.
- NZPA