MPs could face $500 spending cap

Parties and MPs face a possible $500 cap on advertising and communications spending before they must seek approval from parliamentary bureaucrats.

The Parliamentary Services Commission yesterday agreed in principle to an interim arrangement for paying MPs' expenditure.

NZPA understands that under the arrangement MPs and party leaders can spend up to $500 without having the spending vetted by Parliamentary Service officials, who administer MPs' parliamentary budgets.

The arrangement will now be discussed by party caucuses before final approval is given.

The commission, a cross-party group of MPs, oversees the Parliamentary Service which administers the money to run Parliament and pay MPs' expenses.

Its system was thrown into confusion by Auditor-General Kevin Brady's report on last year's campaign spending.

The Government said his interpretation of "electioneering" was so broad it covered almost everything MPs did.

The service reacted by taking a tough stance on spending, even refusing to fund New Zealand First's Christmas cards.

NZ First deputy leader Peter Brown today told NZPA he was pleased he could now send out Christmas cards, although under the proposed new rules he would have to have his contact details printed somewhere on the card.

Last week the Parliamentary Service put in a report to the Commission outlining options for the future.

The first option was more control of MPs' spending, including approval before costs were incurred, and a ban on taxpayer-funded advertising in the three months before an election.

The second would need a change to the definitions of "parliamentary purposes" and "electioneering", suggesting the rules could be changed to allow the kind of expenditure Mr Brady found to be unlawful.

The third option involved bulk funding and letting MPs decide how they spent their money.

- NZPA