KEY POINTS:
Liberterianz leader Bernard Darnton has dropped his legal action against Prime Minister Helen Clark and Attorney General Michael Cullen.
Mr Darnton said he made the decision after the Government passed legislation to retrospectively validate spending last October.
He had sought a judicial review of election-related spending of taxpayer money through the High Court.
"The advice that I got was with that legislation effectively legalising all of the Parliamentary Services spending for the prior year that my case would just get thrown out of court if we tried to take it any further," Mr Darnton said.
He declined to say how much the case had cost or how much he had managed to fund-raise.
"I was very pleased with the amount of support that I did get," he said.
Even though the court action was not going ahead Mr Darnton said the case had been successful as it raised public awareness of the issue and it would not stop him acting in future.
The Appropriation (Parliamentary Expenditure Validation) Bill passed 61-50 with the support of New Zealand First and United Future.
National and ACT voted against it. The Maori Party did not vote and the Green Party abstained.
Dr Cullen said Treasury advice was that the bill was needed to validate $1.17 million in election spending Auditor General Kevin Brady found unlawful.
Labour spent $447,883.39 out of the leader's budget on its pledge card and related brochure.
- NZPA
