KEY POINTS:
Labour is setting up a review to consider possible further changes to electoral financing - including possible state funding of political party campaigns for future elections.
Justice Minister Annette King will choose an independent panel early next year to consider possible taxpayer funding of political parties.
Labour had considered state funding of political parties prior to its rewrite of electoral laws, however, it was unable to get the political support necessary.
National Party leader John Key has criticised the timing of the review, saying such an approach should have happened before the Electoral Finance Act, rather than afterwards as "a bolt-on after-thought".
He said Labour had again broken with long-held convention of seeking bipartisan support for electoral law change and the review was "a stalking horse for state funding of political parties".
"It is effectively a sop to the Greens and it looks like an attempt to bring in taxpayer funding of parties through the backdoor."
However, Ms King said the criticism was premature and National's stance only showed how difficult it was for Labour to get any agreement out of them.
"[The panel] does not make decisions. It allows us to have a discussion and allows the public to have a say. And maybe National should wait and see what the public does say."
The panel will also consider donations rules, and the structure of electoral agencies, but will not consider the provisions in the Electoral Finance Act, although its considerations could overlap in issues around donations. Any recommendations would not be made until April 2009.
There would be a public participation process, including a "citizens' jury" at the request of the Green Party - which will consist of ordinary citizens randomly selected from each electorate to examine campaign funding and finance.
Green Party MP Metiria Turei said the citizens' jury should be charged with considering state funding of political parties.
The Green Party supported state funding, because it would mean most anonymous donations could be further limited. However, she said it was important citizens considered it, rather than politicians with vested interests.
"If you are going to do state funding, it's the people who are paying for it who should decide on it."
National has promised to repeal the electoral finance law and Mr Key said replacement law should be based on recommendations of a Royal Commission of inquiry, or a review of similar status.
"Otherwise we find ourselves in the position where we are passing law on a partisan basis and that's the basis for our opposition to the bill."
He said National would not railroad through its own electoral changes simply to get revenge for the Electoral Finance Act.
"We never said there were not areas in which changes were not justified."
Mrs King said the review process would not be partisan and every party would be asked to nominate people for the panel.
Former Justice Minister Mark Burton , who introduced the controversial Electoral Finance Act, said when he introduced it that an independent review was the best way to deal with the matter of state funding.
NEW REVIEW
* An expert panel to review electoral issues not included in the Electoral Finance Act.
* Will review public funding of political parties, political donations, the organisation of electoral agencies, and international approaches to political funding.
* Will include "comprehensive public participation" including a citizen's "jury" made up of randomly selected members of the public from each electorate.
