Peters' threat prompted caution: Clarkson camp

Bob Clarkson

Former Tauranga MP Winston Peters warned rival Bob Clarkson before the election that he would mount a legal challenge against him if he lost his seat, a court heard yesterday.

Mr Clarkson's campaign manager, Wayne Walford, told a special hearing of the High Court at Tauranga that Mr Peters' campaign chairman, Roy Townhill, issued the warning in a letter in September.

Mr Walford and Mr Clarkson's campaign treasurer said the warning prompted them to take extreme care with campaign expenses in the period leading up to the September 17 election.

Mr Walford told the court that Mr Townhill's letter, which was addressed to him and hand-delivered, caused him to cancel distribution of the last of a series of pamphlets promoting Mr Clarkson.

"I made the decision not because we were close to or over the $20,000 limit but simply because I felt I should be cautious due to the allegation of overspending," he said.

Mr Walford said he believed Mr Clarkson was the only Tauranga candidate to receive such a letter.

Mr Clarkson's campaign treasurer, Andrew von Dadelszen, told the court that he took a precautionary approach to the campaign accounting because Mr Peters had made it clear he would mount a legal challenge if beaten.

"I took a conservative view of everything I did ... I recognised the risk of vexatious litigation against my candidate," Mr von Dadelszen said.

His approach extended to seeking legal advice about costs and in the last week of the campaign, when Mr Clarkson's team became certain there would be a legal challenge, stopping all expenditure.

Mr von Dadelszen made the decision despite believing that even in a worst-case scenario the campaign had not overspent. "I decided I didn't want our team taking any risks."

Mr Peters filed an election petition on October 6 alleging overspending by Mr Clarkson.

The case has focused attention on the role of political campaign managers, with Mr Peters' lawyer, Brian Henry, arguing that Mr Walford's salary should be considered an election expense.

Yesterday, it emerged that Mr Walford's monthly salary increased from $3800 to $4800 during the final stages of the campaign.

Mr Clarkson's lawyers, Colin Pidgeon, QC, and Peter Kiely, have said it was not an election expense because his role was "primarily administrative".

Details of a secretary who was employed by Mr Clarkson and may have been involved in campaign activities also emerged yesterday.

Mr Walford said the secretary, whom he named as Diana, was employed for 30 hours a week and was paid more than $10 an hour.

Her salary was not included in his calculations of election expenses.

A reference was also made to the Exclusive Brethren in relation to a telephone poll carried out in Tauranga's neighbouring Bay of Plenty electorate.

Mr Henry asked Mr Walford if his boss had held discussions with the secretive church, which controversially contributed to the National Party campaign.

The judges will report to Parliament's Speaker, Margaret Wilson, who will announce the result of the case. 

 
The Tauranga case

The issue
* Under the Electoral Act, candidates are allowed to spend a maximum of $20,000 on campaign expenses.
* New Zealand First leader Winston Peters - Tauranga MP for 21 years until his defeat in September - says National's Bob Clarkson overspent the limit during his successful bid to become MP.

The stakes
* If the allegation is proved, Mr Clarkson will lose his seat and a byelection will be held. Three High Court judges are deciding the case, which is expected to finish today.