KEY POINTS:
National's Bill English says a letter in which Labour openly admits a taxpayer funded leaflet was election material shows the party is becoming "brazen" about using the public purse to get itself re-elected.
Mr English yesterday released a letter from Labour's general secretary Mike Smith to the Electoral Commission which openly admitted a Budget leaflet paid out of Prime Minister Helen Clark's leader's budget was election advertising.
The advertisement does not breach either electoral laws or Parliament's more liberal spending laws - under which MPs can use public funding for communicating with voters but not for direct electioneering. However, it is rare a party openly admits to using taxpayer funding for election material.
The leaflet was authorised by Mr Smith, as required under the new Electoral Finance Act which has a broad definition of election advertisement.
However, Labour had publicly resisted saying whether it considered the new Budget leaflet is an election advertisement which would have to be included as spending in its $2.4 million spending cap. In his letter to the Electoral Commission Mr Smith said he was entitled to authorise it on behalf of the party.
"The pamphlet is an election advertisement for the Labour Party which was produced by the Labour leader's office on behalf of the Labour Party."
Mr English said the open acknowledgment showed Labour was becoming increasingly "brazen" about using the public purse for its election campaign.
"All Kiwi taxpayers are now being forced to fund Labour's re-election campaign."
Mr English attacked Labour for it in Parliament yesterday, asking if the Electoral Finance Act gave parties "unlimited access to public taxpayers' money which is meant to be in the charge of the Prime Minister's office".
Justice Minister Annette King said it was no different from National using its funds to pay for consultants without having to disclose it.
Labour has faced ongoing criticism for its $824,000 unlawful spending from taxpayer coffers in the last election. Mr English said although the PM had said there would not be a 2008 pledge card, the leaflet showed she was replacing it with other material which was also paid for by the taxpayer.
Ms King produced material from Act and the Green Party which was parliamentary funded but also authorised as election advertising. She was certain Labour would do what was required by law and stood by its "record of repaying money to the Parliamentary Service".
Mr English had referred the leaflet to the Electoral Commission after the Prime Minister refused to directly answer whether she believed the leaflet was an election advertisement, the costs for which must be included in the party's election spending cap.
The Prime Minister had responded instead with a general comment that all election advertising would be included in its return.
