Brady to verify new rules on spending

Auditor-General Kevin Brady is going to be asked to approve an interim set of rules on MPs' spending that Speaker Margaret Wilson has requested to be drawn up.

A cross-party meeting of MPs in the advisory group, the Parliamentary Service Commission, yesterday asked Parliamentary Service to draw up a new set of rules in the light of the Auditor-General's report on taxpayer-funded election advertising.

The Speaker's office confirmed that Mr Brady will be asked to look at the interim rules in the light of his report last week on unlawful spending by political parties on election advertising.

MPs are prohibited from spending taxpayer money on electioneering.

While Mr Brady's inquiry was restricted to the three months before the election, meaning proximity to the election was crucial in defining whether spending could be even classed as electioneering, Labour and other parties opposed to the findings argue that it throws all spending into question.

Margaret Wilson will report to Parliament today on what each party has decided to do in the wake of her recommendation that $1.17 million be repaid in the interests of maintaining public confidence in Parliament.

New Zealand first is the only party which has not made a commitment to repay its spending - $158,000 - though it has not yet said it won't.

Apart from the interim rule rewrite, there will be two reviews - one on expenditure and another on structural relationships - to be completed before the Government introduces a bill to address both.

The spending review will be completed by businessman John Goulter.

Parliament yesterday passed legislation to validate the unlawful election spending identified in Mr Brady's report and all similar spending going back to 1989.

With the support of New Zealand First and United Future, the Government had the numbers, 61-50, to pass the Appropriation (Parliamentary Expenditure Validation) Bill.

United Future MP Gordon Copeland said repaying the $63,800 his party owed was costing its MPs dear, because it had only three.

Dr Cullen said the bill was necessary "in order to put the public accounts in proper shape".

The second part of it was necessary because it clarified what the Parliamentary Service could fund.

Travel and telephone use by MPs could also have been affected under the Auditor-General's interpretation of the rules, he said.

National and Act voted against the bill. The Maori Party did not vote. The Green Party's six MPs abstained.

- STAFF REPORTER, NZPA