Pay the money back, Brash tells Clark

Helen Clark's first prime ministerial policy speech to Parliament this year was overshadowed yesterday by a stinging attack on her and Labour's election spending by National leader Don Brash.

"Do the right thing by the people of this country: pay the money back and apologise," he demanded after the Prime Minister's set-piece speech.

Act leader Rodney Hide also called on Speaker Margaret Wilson to say what she knew, and when, about Labour paying for its election pledge card promises from Helen Clark's parliamentary leaders' fund - or "slush fund" as he called it - for which the Speaker is responsible.

Parliament's rules prohibit leaders' parliamentary funds being used to solicit support for political parties.

The Electoral Commission deemed last week that the pledge card did just that and has asked the police to investigate the fact that Labour did not declare it and a pamphlet, together totalling $446,815, in its expenses return.

Party president Mike Williams has revealed that Helen Clark's office has funded all of Labour's three election pledge cards.

Dr Brash said yesterday that Helen Clark had to be accountable and pay back the money.

"This money belonged to tax-payers up and down New Zealand.

"Pay it back. Don't hide behind the coat-tails of your party president."

He invoked Helen Clark's own words about the pledge card to the party congress in 1999, when she said: "My signature is on it; I am accountable for it."

He also referred to past issues that raised questions over Helen Clark's integrity: "Paintergate", "Corngate", "Doonegate" and the speeding motorcade.

Margaret Wilson said the Parliamentary Service Commission which she chairs would discuss the issue today.

Mr Hide said it appeared that taxpayers' money has been "misappropriated" and that the Speaker's role needed to be clarified.

"It raises some very serious question for the Speaker of this House, such as when did you first learn that the money was being spent on the pledge card when it was clearly inappropriate that it be spent; what involvement you had in okaying that expenditure and did indeed you involve yourself in distributing this pledge card?"

It was too serious a matter to be shuffled off to the Parliamentary Service Commission.

While the matter has been referred to the police, the issue was also referred to the Auditor-General in September by the Speaker after a complaint from National during the election - though it was not clear last night whether it was sent to the Auditor-General before or after the election.

Referring to National, Helen Clark said yesterday that "people in glass houses shouldn't throw stones", and that she had seen no reference on National's election return to the leaflet produced by the Exclusive Brethren - which Dr Brash has said he encouraged.

Dr Brash's speech was barely audible in the chamber because of the din of Government members, but he adopted a crash-through style.

Under Parliament's rules, he had been given a copy of Helen Clark's speech four hours earlier.

Her speech echoed the Governor-General's speech from the Throne that set out the Government's policy priorities for the next three years. It was a speech that dealt more with the economy than social issues.

Helen Clark said the Government was managing "the dip in the business cycle" in a measured way.

"That's in stark contrast to the vacuous slogans and banshee wails of the Opposition."

The projected low in growth - 1.7 per cent next year - would have been grasped with gratitude in other times. She said National had decided to "pray for a recession".

She repeated the Government's promise to improve internet services and lower costs. "Broadband is a critical enabler of productivity, growth and economic transformation, yet New Zealand is lagging behind on many broadband indicators."

She said New Zealand in 2006 was in many ways a "work in progress".

"Our country is on a journey away from the old economy to the new one, improving the health, education levels and living standards of all our people."

Government agenda

Legislation to make broadband internet access faster and cheaper.

Secure future power supply to Auckland.

Continue to give priority to Auckland land transport infrastructure.

Boost science and research funding.

Cut waste in tertiary education spending.

Open up more trading markets for New Zealand.

Review and reform business tax.

Begin KiwiSaver savings scheme.

Extend Working for Families to 60,000 more families.

Introduce senior citizens' discount card.

1000 more sworn police.

Develop policy to tackle child obesity.