KEY POINTS:
Labour has finally unveiled its long-awaited clampdown on election campaign financing, and it includes a tougher disclosure regime for donors as well as moves to prevent a repeat of the controversial Exclusive Brethren advertising campaign of 2005.
The changes, which have been in the pipeline for months, will have the support of New Zealand First, the Greens and United Future during their first reading.
After that the proposals will come before a select committee and the public and all political parties will be able to seek to change them.
Justice Minister Mark Burton yesterday said the Electoral Finance Bill would put all parties on a level playing field, and was intended to "prevent the undue influence of wealth".
"The aim of the Bill is to restore confidence, and increase public participation in New Zealand's electoral process," Mr Burton said.
The wide-ranging changes have stemmed from growing concern about the amount of anonymous money that flowed into the National Party's coffers before the 2005 election, as well as criticism of the Exclusive Brethren's attacks on political parties in the same election year.
National received a large portion of its donations through trusts in the lead-up to that election, including the mysterious Waitemata Trust, while Labour also received some anonymous donations.
Labour initially pushed to have state funding of political parties included in its electoral reform bill, but failed to secure enough support from its parliamentary colleagues.
It is proposing to have that issue dealt with through an independent review of the structure and organisation of electoral agencies, which will also address how political parties are funded. That proposed review would report at the end of 2008, meaning it will not affect the next election.
The bill tabled by Labour yesterday is not as tough as some expected it to be, and the Greens have criticised it for not going far enough.
Greens co-leader Russel Norman said the proposals would not stop the "faceless money" that poured in to both Labour and National from "secretive trusts" and anonymous donors.
He said it was amazing that the bill required disclosure from someone giving money to a so-called third party such as the Exclusive Brethren if the amount was higher than $500 - but allowed political parties to accept anonymous donations of any amount.
"Elections should be a contest of ideas and policy, not a contest of who can raise the most money from secret trusts and anonymous donations," Dr Norman said.
But despite the donations still being able to be pumped into the parties, their ability to spend the money during an election year will be limited.
Labour's proposed changes shift the date during which election expenses are monitored to January 1 of any election year, extending the period from the existing three months leading up to an election date.
Mr Burton said there were several provisions in the bill designed to prevent people making multiple donations of a small amount to circumvent donor limits.
The Maori Party last night said it had not been consulted on the bill and would consider it at an upcoming caucus meeting.
National was also not consulted, and said it could not immediately comment on the proposals.
The Greens have committed to supporting the bill right through to it becoming law, despite not being entirely happy with its provisions.
New Zealand First has committed to support the bill through to a select committee, and leader Winston Peters appears to have secured some wins in return for his support.
The requirement for political representatives to be appointed to the Electoral Commission for the purpose of its jurisdiction under the Broadcasting Act has been removed.
Specific provisions have also been included to deal with issues which arose during Mr Peters' court battle with National MP Bob Clarkson, who beat him to the Tauranga seat in 2005.
The new rules
* A party's election expenses must not exceed $1m - and $20,000 for each electorate - from January 1 in any election year.
* If a person involved in the administration of the affairs of a candidate or party knows the name and address of a donor, it must be disclosed.
* So-called third parties, such as the Exclusive Brethren, which organised a pamphlet campaign at the last election (pictured above) and unions, will have to notify the Chief Electoral Officer and reveal their identities publicly if they intend to spend more than $500 in an electorate or $5000 generally.
* They will then be limited to spending up to $2000 within an electorate, and $60,000 more widely.
* Political parties can still accept donations of up to $10,000 without the donor revealing his or her identity, and candidates up to $1000.
* There is no specific ban on donations from trusts or ones made anonymously.
