Election-spending decision on hold, says PM

Helen Clark

The Cabinet will not make any decisions about how to deal with the election spending controversy until Auditor-General Kevin Brady delivers his final report, Prime Minister Helen Clark said today.

Mr Brady has sent a draft report to political parties and the Parliamentary Service identifying taxpayer funds which he considers were unlawfully spent during last year's election campaign.

Legislation to validate the expenditure has been mentioned by Deputy Prime Minister Michael Cullen as one way to rectify the situation.

Helen Clark, speaking on National Radio and NewstalkZB, said the expenditure problem went back to 1989.

"No one set out to break the rules," she said. "These budgets were put in place for parties to promote policies, and that is what the Parliamentary Service has permitted in good faith."

Mr Brady found that spending during the campaign went further than policy promotion and was used to solicit votes, which is beyond the scope of public money appropriated by Parliament.

Helen Clark said the issue was between the Auditor-General and the Parliamentary Service.

Asked whether the Cabinet would discuss the situation at its meeting today, she said: "I'm not expecting a decision because the Auditor-General has yet to deliver a report.

"He's asked for feedback from the Parliamentary Service."

Only the National party has disclosed how much money Mr Brady considered it had unlawfully spent -- about $10,000 which it has repaid.

The Prime Minister said she thought National leader Don Brash had been foolish to do that because much more was involved than just last year's election campaign.

"The question goes back to 1989...what do you do when Parliamentary Service has authorised spending for many years, and then the Auditor-General takes a different view?" she said.

National is claiming the $446,000 cost of Labour's pledge card must have been picked up by Mr Brady as unlawful spending, but Miss Clark would not confirm that.

"I can't confirm any figures. We are waiting for a final report from the Auditor-General," she said.

- NZPA