Govt plans to lift lobby group limit

The removing of limits on how much lobby groups can spend supporting political allies during election campaigns is set to be a political battleground again.

Justice Minister Simon Power yesterday released proposals to replace Labour's since-repealed Electoral Finance Act, which National and Act both labelled anti-democratic.

Under National's proposal there would be no limit, but those spending more than $12,000 would have to be named on a public register.

Labour's justice spokeswoman Lianne Dalziel welcomed most of the proposals but expressed concern about the lack of limits on lobby groups.

"Labour's Electoral Finance Act was a direct response to the subterfuge and political chicanery that characterised parallel campaigning in the 2005 election," she said.

"National's proposals would identify parallel campaigners, but do not limit how much they can spend, or require them to say how much they have spent, or how closely they can work with political parties to essentially tilt the financial playing field in their favour."

The Greens expressed similar concerns, but Act leader Rodney Hide disagreed.

"We think that [no limit] is smart. We were always against restricting the freedoms of other New Zealanders and have said we will support this bill to the select committee and have a good look at it."

Mr Power said the decisions had the broad agreement of political parties.

"The package comes after extended consultation with all parliamentary parties and the public. As a result, Cabinet has decided to progress reforms only where there is broad public and political support. If we are to have a system which is fair, workable, enduring and in place before the 2011 election, broad consensus is essential," Mr Power said.

He said there would be no change to the broadcasting regime that has existed since 1990.

"Similarly, as was the case before the 2008 election, we will not impose expenditure limits on parallel campaigners. New Zealanders were strongly divided on these issues," Mr Power said.

"We will introduce legislation in the coming months implementing these decisions. We expect the new rules to be in place before the 2011 general election."

- NZPA

ELECTORAL SPENDING PLANS

* Spending limits remain on parties and candidates, inflation adjusted.
* No spending limits on third-party campaigners.
* Third parties planning to spend more than $12,000 must register with Electoral Commission but no requirement to declare their sources of funding or to provide expenses returns.
* No anonymous election advertising.
* Parties must declare identity of donors of more than $10,000.
* Parties must declare the number of donations within certain bands, yet to be defined.
* Parties and candidates to provide expenses returns.
* Regulated period will be three months before an election.
* Loophole allowing MPs to electioneer on taxpayers' funds in regulated period to be closed.