Clark, Brady won't budge

Prime Minister Helen Clark and Auditor-General Kevin Brady stand by their conflicting stories about whether he privately told a party leader retrospectively validating election spending was appropriate.

Helen Clark yesterday told the Weekend Herald she stuck by her claim that Mr Brady made the comment in a conversation with an unnamed party leader "because I absolutely believe the party leader that reported it to me".

But on Thursday Mr Brady flatly denied having made the comment.

Yesterday he said in a radio interview that the issue of legislating to validate unlawful spending might have been discussed at some point, but he had no view on it at all.

Any attempt by Labour to pass such legislation is likely to need the support of United Future and New Zealand First, and neither party has yet confirmed if it would vote with Labour.

Helen Clark yesterday declined to name the party leader who told her the Auditor-General had made the remark. He is, however, believed to be United Future's Peter Dunne, although his office will not comment.

The conversation is believed to date back to early in the election spending battle.