KEY POINTS:
The Government is proposing an amendment to the Electoral Finance Bill that will encourage electoral agencies to overlook the many technical breaches that are certain to occur under the sweeping new law.
Just hours before debate on the committee stages began on the highly contentious legislation, Justice Minister Annette King tabled 150 amendments.
Many are technical but two urge the Electoral Commission, which deals with parties, and the Chief Electoral Officer, who deals with individuals, to use their discretion to not refer "inconsequential" cases to the police for prosecution.
The clause is similar to that inserted into the anti-smacking legislation when the Government accepted that the law could well make criminals of many parents.
Parliament last night began debating the committee stages of the Electoral Finance Bill.
It has been widely condemned for the limits it puts on campaigning by non-political-party groups and the chilling effect it is likely to have on participation in elections.
At the same time the Government is tightening spending by outside groups, it has liberalised political advertising laws for MPs.
National Party deputy leader Bill English said inserting such wide discretionary clauses into the bill demonstrated it was badly drafted.
"If something is inconsequential, that should be made clear in the law, not left to some undefined discretion." Prime Minister Helen Clark took a conciliatory tone with the bill's opponents during question time, saying Labour might support some of National's amendments.
But the gloves came off later in the evening as debate over the bill intensified.
The Herald's campaign against the bill was attacked by New Zealand First leader Winston Peters who claimed its foreign owners wanted to control elections.
National leader John Key challenged Labour MPs to read the editorial against the bill on yesterday's front page and "for once in your lives recognise that you are not bigger than the people of New Zealand."
Justice Minister Annette King said the bill was designed to stop National from "screwing the scrum" on election spending - and "they are old scrum screwers from a long way back".
She then surprised the House by backtracking on her interpretation of a crucial cover-all clause that exempts members from all restrictions under the bill if they are doing anything in their capacity as MPs.
Her interpretation had been in response to criticism from the Electoral Commission on the bill's confusion. Ms King told the House two weeks ago that the definition of "MPs acting in their capacity as members of Parliament" excluded statements they made outside the House on policy that was intended to be enacted by a future Parliament.
Last night, she said she was "prepared to say I might be wrong". Her original view had been a personal one and the Electoral Commission would look for Parliament's view.