Transcript: Clark on paying back election money

Helen Clark announcing the decision to pay back the money. Picture / Dean Purcell

Prime Minister Helen Clark today gave a press conference about Labour's decision to pay back election spending deemed unlawful.

This is a transcript of what she said.

Helen Clark: You will have seen the statement I issued this afternoon. That statement says that the Labour Party will be refunding the money which the Auditor General (AG) has formed an opinion about. I should say that we do not accept the reasoning in his opinion and judgement. We find the reasoning in the legal opinion commissioned by the Speaker much more compelling.

That reasoning suggests there has never been any distinction in Parliamentary rules and guidelines between the period three months before an election and other periods.

Nonetheless, the Auditor-General has imported that understanding into his judgment. He is the statutory official and we will act accordingly.

Reporter: Are you paying back the full amount?

Clark: We've said we will refund the money which has been identified.

Reporter: How will you refund it?

Clark: By paying it.

Reporter: Where will the cash come from?

Clark: From party members and supporters.

Reporter: Does that mean they will be dipping into their own pockets, MPs?

Clark: Of course we would expect our party members and supporters to be contributing.

Reporter: Who do you hold responsible for the unlawful spending?

Clark: As I say, we do not accept the reasoning in the Auditor-General's opinion. We have said for some time we believe it is wrong. There is a highly reputable lawyer who has advised the Speaker (Parliamentary Speaker Margaret Wilson) and he draws the same conclusion. Nonetheless, we are in the position where a statutory official has come down with a judgment and we will act in accordance with that.

Reporter: Do you accept the pledge card was electioneering?

Clark: It has never been considered electioneering for Parliamentary purposes until this opinion of the Auditor-General.

Reporter: If you don't accept the reasoning, why are you paying the money?

Clark: The Labour Party's reputation matters to it. While we disagree with the opinion of the Auditor-General, he is the statutory official in this area and on that basis, we will be refunding it.

Reporter: If your reputation matters so much, why didn't you come out and say that you would repay this money when other parties did?

Clark: The fact is a lot of parties have had a lot to say before a final report was available. The Auditor-General's interim report was leaked selectively by the National Party. The Auditor-General made it clear he was open to submission to other political parties.

It is a very foolish party which makes statements on what it will do before it is in possession of the report.

Reporter: Did Labour feel its reputation was on the line if it did not [pay the money]:

Clark: The Auditor-General is the statutory officer in this area. He has come up with the finding, we believe it is wrong. We believe the legal advice to the Speaker is right. Nonetheless, we are left in the position where the relevant statutory official has made a finding.

Reporter: Will you be challenging it at all, or supporting other parties who seek judicial review?

Clark: It is up to other parties and we have decided to put this matter behind us.

Reporter: When will the money be paid?

Clark: That's something we will be in discussion with the Speaker about. The Speaker has asked parties to respond by next week. I would have thought within the course of this financial year will be reasonable.

Reporter: What needs to be done now to ensure it doesn't happen again?

Clark: Obviously there needs to be clarity to the rules. When you have two of the best legal minds in New Zealand, the former Solicitor-General and Jack Hodder QC coming up with very different interpretations it is simply unfair to put political parties in this position.

I stress, as I have for many, many weeks now, that no political party sets out to break rules. All political parties affected believed they were acting within the rules.

Reporter: Do you have confidence in the Auditor-General?

Clark: As I said in Parliament yesterday, it's not for me to express an opinion one way or another. The Controller and Auditor-General is an official of Parliament, he is not accountable to the Executive.

Reporter: Calls from other parties for snap election, claiming you were elected on an illegal basis?

Clark: That is clearly ridiculous. It's the sort of thing the National Party would say. We are rather more interested in when they are going to pay back the $118,000 they owe television and other broadcasters. They might as well up the $100,000 fine that will go with that and when they pay it, we are also very interested in having the rules around campaign financing and activity addressed so that the National Party can never again have the Exclusive Brethren counsel on how it can spend $1.2 million outside National's spending cap to rort [word unclear] an election.