KEY POINTS:
Winston Peters' taxpayer-funded newspaper ads yesterday about New Zealand First's opposition to the China free trade agreement may be one of the more important test cases in the early days of the Electoral Finance Act.
The act, which came into effect on January 1, has become so confusing that many political parties have stopped producing taxpayer-funded literature - once regarded as normal publicity by them - for fear it might have to count as an election expense.
The view in Labour that all material with a parliamentary crest should not be attributed as an expense under a spending cap imposed on all parties is not shared by the Electoral Commission.
Acting Prime Minister Michael Cullen yesterday showed his frustration with the Electoral Commission when asked if its view was the same as his towards parliamentary-approved material and election expenses.
"I would advise them perhaps to take clear legal advice because the law is quite clear that where an MP is acting in accordance with their normal duties as a member of Parliament then, in fact, that [material] is not attributable."
Labour dares not amend the act with a more explicit exemption for parliamentary material because of the potential voter backlash.
The Electoral Commission has said it will consider the New Zealand First ad at its next meeting on April 24.
Mr Peters insists that his advertisement is within the law.
"I am absolutely certain it is within the rules because we made a substantial inquiry to ensure so."
There will be two consequences if it turns out not to be: The cost of the ads would be attributable in the party's return of expenses and be counted within the party's spending cap.
The ads could be referred to the police as they don't have the authorisation of the party's secretary, required of all election ads no matter who funds it, and be liable for a $40,000 fine.
But, importantly for MPs, it would give much better guidance about how strictly the commission will interpret advertisements.
The ad, in the form of a questionnaire, states new Zealand First's opposition to the FTA, the sale of Auckland Airport "into foreign hands," and the sale "of our dairy industry to foreign interests."
It says: "It's time for New Zealanders to own New Zealand again - don't you agree?" And it invites readers to send their responses back to parliament, free post.
Dr Cullen said he would not comment on the ad.
A spokesman for Mr Peters said he had spoken to the chief executive of the Electoral Commission three weeks ago about ads on a hypothetical basis.
His understanding was that ads about future policies would be counted as electioneering but not those that addressed issues which would be resolved before the elections.
