By JOHN ARMSTRONG
Labour is calling for the state funding of political parties, saying that has become an "urgent necessity" given public unease over campaign coffers being filled with large unsourced donations.
The party wants Parliament to ban anonymous or "laundered" donations of more than $1000.
Laundered donations are contributions made to front organisations like the New Zealand Free Enterprise Trust, which National uses to conceal its donors' identities.
Cash from such sources would be replaced by state funding to ensure transparency in election campaigning. However, that would cost taxpayers well over $1 million, according to Labour's formula.
"This is vital to restore confidence in the political system and combat the suspicion that hidden influence is being exercised on the political process through substantial secret donations," Labour says in its submission to Parliament's committee reviewing the MMP system.
The special committee, chaired by the Speaker Jonathan Hunt, has a wide-ranging brief to consider possible changes to the electoral system. The review is expected to be completed by early next year. Parliament's justice and electoral law select committee is also examining tightening the law on donations.
Labour's submission comes in the wake of revelations in April that the two major political parties are receiving most of their donations from anonymous sources that they are not required to disclose.
Labour wants the loss of such income to be compensated by state funding along the lines and amounts recommended by the 1986 Royal Commission on the electoral system.
That commission recommended parties get $1 for each vote they received in contested electorates up to the level of 20 per cent of the total vote cast. This payment would drop to 50c per vote up to the 30 per cent level, after which it would stop altogether.
On that basis, Labour would qualify for state funding of around $480,000. National would have received the same amount as it too secured more than 30 per cent of the electorate vote. Labour secured around $825,000 from unknown donors at the last election.
The Prime Minister is withholding comment on state funding until she has read the submission, which was produced by her party's governing council.
In its submission, National opposed state funding, arguing taxes should not be collected to fund political activity.
If state funding was introduced, however, National would not want limits on funding from other sources. "If people wish to make donations, that should be their business and they should be free to make the donations that they wish."
In yesterday's Herald, the Speaker, Jonathan Hunt, was mistakenly quoted as saying he wanted to pre-empt the review committee. The sentence should have quoted him as not wanting to pre-empt the committee's work.
Labour wants party gifts tagged
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