KEY POINTS:
The Labour Party is seeking legal advice on how much of $43,000 of trade union advertising it will have to include in its election expenses after
confusion about how much it is required to declare.
Labour has authorised two Council of Trade Union ads which promote Labour policies and attack National, with a combined cost of about $43,000.
Although Labour does not have to contribute to the cost of the ads, because it approved them it must include the cost in its election expenses return.
CTU president Helen Kelly said the union had worked out with Labour how much the party would have to include in its expenses return, believing the law required Labour only to include the proportion relating to it.
However, a spokesman for the Electoral Commission said the law required Labour to include the cost of the entire advertisement in its expenses.
A mistake in the expenses return could have ramifications for Labour if
it inadvertently pushes it over its election spending cap.
It could also result in harsh penalties - a $40,000 fine for financial agents or party secretaries.
Labour has previously included union spending in its return but the law is now more specific because of the new regime for third parties.
Yesterday party secretary Mike Smith said it would file its return "according to the law".
He would not say what he understood the law to say, or whether he believed the party must include the total cost of the advertisement or a proportion of it, saying he was seeking legal advice as he did on a range of matters.
Political parties can split the costs for joint advertisements but the law relating to party approval of a third-party campaign did not have a similar provision.
The union will begin distributing 300,000 copies of its main election brochure next week. It features ticks next to Labour Party policies and crosses next to National.
The CTU brochure could also affect the smaller parties - the Greens, Maori Party, and Progressives have all authorised the union's main campaign brochure on workers' rights which endorses the policies of all three.
It could mean the three smaller parties will have to include the total
$34,500 cost of it in their returns, despite only having small sections dedicated to them.
The CTU is a listed third party, allowing it to spend up to $120,000 on
election advertising. However, it has to get written authorisation from parties it is promoting in its advertisements.
Ms Kelly said the CTU got Labour's authorisation for the first advertisement to be safe - while it does not refer to Labour by name, it lists several Labour policies and the new definition covers advertisements that encourage people to vote for a party by reference to its policies, irrespective of whether the party is mentioned.
What the Electoral Commission has done:
19 decisions on election advertising.
1 decision pending and a further 10 complaints ready for consideration.
3 referrals to police over advertising issues.
Employers and Manufacturers Association for election advertisement believed to cost over the $12,000 limit before it must list as a third party.
Progressives Party BZP advertisement with incorrect promoter statement.
Further investigation of a complaint of phone canvassing.
Court case brought by National Party. Court stands by decision to allow Engineering, Printing and Manufacturing Union to list as third
party.
Twenty third parties now listed, of which 11 are unions, 3 are individuals, and the rest include Electoral Finance Act objectors, health, food industry, and economic lobbyists.
New donations regime:
No donations under the new "protected disclosures" scheme(anonymous donations greater than $1000 can only be made via the Electoral Commission).
Eight donations more than $20,000: five to the Green Party (MPs Jeanette
Fitzsimons [$34,600] and Sue Kedgley [$21,800], Dr Stuart Bramhall [$37,000], Christopher Marshall [$44,500], Bryan Forde [$24,750], two to National Party (Road Transport Trust [$30,000] and leader John Key [$30,000], one to Act (Alan Gibbs, $100,000).
