MPs to lose taxpayer-funded advertising

Photo / Greg Bowker

Justice Minister Simon Power will tighten the rules for MPs to close a loophole that allows them to use taxpayer money for election advertising in the lead-up to an election.

Mr Power's proposed reforms to electoral finance laws included reforming Parliamentary Services rules, which now allow MPs to use the taxpayers' purse to pay for all but explicit electioneering material.

Mr Power said the Speaker would be asked to tighten the rules to ensure they aligned with electoral finance laws and prevented taxpayer money being used for thinly veiled campaign material.

He said placards advertising electorate MP clinics should still be covered "but as soon as you move into the space of [pledge] cards or billboards or ads in the paper, then you're crossing lines. They have to work together because they haven't previously."

The loophole has long rankled with National, especially since Labour's pledge card in 2005 - a card which was paid for by the taxpayer but still fell under the definition of "election advertising" in electoral laws. Labour repaid money for exceeding its spending cap by over $400,000 in 2005 after its pledge card, funded by the taxpayer, was deemed to be an election advertisement by the Auditor-General.

Mr Power also intends to change the definition of election advertising in electoral law after a new, broad definition in the Electoral Finance Act caused confusion for parties in 2008.

The proposed change will include a "broad exception" so people expressing their personal opinions on the internet through blogs and personal pages on social networking websites are not caught up in election laws. It will also cover other digital platforms such as text messaging.

Ministry of Justice advice released this week shows a new definition will be based on that used in the Electoral Act 1993 but "modernised" to include all forms of media and communication. It will also repeat the existing exception for news media.

The most contentious change so far has been the Government's decision not to limit spending by parallel campaigners - the $120,000 cap on third parties introduced by the Electoral Finance Act was one of the most controversial aspects of the law.

In Parliament yesterday, Green Party co-leader Metiria Turei questioned Mr Power on whether it would allow some to use their wealth to exercise a disproportionate influence on a campaign.

Mr Power said requiring those spending more than $12,000 to go on a public register was sufficient to ensure transparency.

However, he remained open to considering any refinements the select committee might decide on.