MPs' bank balances take a hit

For the 50 Labour MPs forced to dig into their own pockets to repay taxpayer money wrongly spent during the election campaign it will not be a a question of how much - but how much they can afford.

In a new development in the election spending saga, Deputy Prime Minister Michael Cullen revealed yesterday no set amount had been decided for MPs and cabinet ministers to pay toward the $824,524 fund.

That would be for caucus to discuss shortly, he said.

South Auckland list MP David Hereora told the Herald on Sunday yesterday he was not sure whether he could pay the entire amount in one hit, and might have to look at some sort of time-payment arrangement. He was still working out what he afford to pay back and said "that may mean paying it off... it all depends on how rich or broke you are I suppose".

The Weekend Herald reported that Prime Minister Helen Clark would have to pay $17,350, Cullen $12,250, Cabinet ministers and Speaker Margaret Wilson $10,800 and ordinary MPs $5900 to a $435,000 kitty. The amounts were calculated on 5 per cent of the MP's salaries. That money will be on top of the 4 per cent levy already taken from MPs' salaries for Labour's coffers. The remainder of the $824,524 would be sought from the public through a website and telephone hotline.

Cullen said he was not sure how much MPs would have to come up with. "There will be consultation by all of those involved," he said, but he could not be drawn on whether time payments would be accepted.

Labour says it will not dispute Auditor General Kevin Brady's ruling last week that the party must repay money wrongly spent on campaign electioneering, but it is expected a legal challenge will follow after other parties were struck with possibly crippling bills. Brady ruled a total of $1.2 million of taxpayer funds was spent unlawfully on electioneering by every party except Progressive.

On the website Kiwiblog, an enterprising blogger has calculated the unlawful spending by parties per vote cast. Each Labour vote cost $0.82 and each National vote cost the party 1c.

- HERALD ON SUNDAY