KEY POINTS:
New Zealand First MPs have received a legal briefing and are close to deciding whether to challenge the Auditor-General's finding that their party misspent taxpayers' money.
A lawyer yesterday attended the party's caucus meeting.
Party MPs would not discuss the meeting, but deputy leader Peter Brown said written advice was being sought on a few mainly technical queries.
"We're not that far away in terms of time," Mr Brown said.
"It was a very good discussion, very enlightening and it raised a few queries."
The Auditor-General said New Zealand First misspent $158,000 of the taxpayer money it was given for campaigning in the 2005 election.
It was the second-largest amount - behind Labour's $825,000 - of any party.
New Zealand First is the only one that has not agreed to pay the money back, although there is no legal requirement for any party to repay.
If the party is leaning toward a legal challenge, it will need to consider the cost of such a move against the amount it would likely pay the Auditor-General.
Any legal action is also likely to be a drawn-out affair, which could weigh on the party.
Mr Brown - who has said he wants a legal challenge - said yesterday he was optimistic the party's caucus would be able to come to a consensus on the issue.
"We try to avoid voting in New Zealand First," he said.
"We argue and debate ... by and large we reach a consensus of opinion and I would think that would be the case on this."
Once a caucus position is established, the issue will be discussed with the party's board before a decision is announced.
