National proposes law change to allow election spending pay back

Don Brash

National is proposing a one-off law change to allow the party to pay back money it owes broadcasters due to an accounting blunder during the election campaign.

National blames a misunderstanding between its headquarters and its advertising agency after the agency billed National $900,000 excluding GST instead of $900,000 including GST.

By law National cannot spend more than $900,000 on television advertising for last year's election campaign.

As a result National owes broadcasters $112,000 in GST but cannot legally pay it back.

National leader Don Brash says he will seek leave when Parliament next sits on June 13 to introduce a member's bill allowing the payments to be made.

"We have spent several months working with our legal advisers in an attempt to fix this problem, and have been advised that, as the law currently stands, we are simply prevented from paying the money due," Dr Brash said.

The bill had been vetted by the Office of the Clerk last week, he said.

- NZPA