Smaller parties refuse to commit to paying back all election money

Winston Peters says NZ First may take legal action over its huge bill. Picture / Mark Mitchell

Parliament's smaller parties are refusing to commit to paying back all the money the Auditor-General says they should not have spent before last year's election.

New Zealand First was yesterday hit with a whopping $157,934 bill, the second largest after Labour and said it might take legal action.

The Greens, hit with the third largest debt, said they would pay the money back if it was "ultimately" found outside the rules, but believed it could be reduced by the action Mr Peters might take.

United Future leader Peter Dunne meanwhile went to ground, refusing to give interviews.

NZ First leader Winston Peters maintained the bulk of his party's spending was for two "policy pamphlets" which were produced early last year - outside the three-month period examined by Auditor-General Kevin Brady.

The pamphlets had been in continuous use ever since and were still being used by the party, he said.

He argued the pamphlets were inside Parliamentary Service rules - but used a definition already rejected by Mr Brady.

Mr Peters also argued that pamphlets distributed outside the three-month period should not be included in the bill.

The party had identified "some rats and mice" expenditure - worth "a few thousand" dollars - that it believed should be repaid.

But Mr Peters - who has not met Mr Brady, but whose staff have argued his case - said he wanted to sit down with his lawyers and assess the matter.

The party was likely to go to the Court of Appeal seeking a declaratory statement that its spending was legal, he said.

Speaker Margaret Wilson has asked parties to report their plans to her next week, but Mr Peters said he would not be able to meet that timeframe.

Mr Dunne got a bill close to $72,000, which he said in a statement had come as a "considerable shock". On Wednesday Mr Dunne held a press conference where he promised to pay back almost $5000, but would not commit to any further repayment unless specifically directed to do so.

It is not Mr Brady's responsibility to suggest remedies for the unlawful expenditure identified and Margaret Wilson did not direct parties to repay the money.

But she encouraged it.

"It must be seriously considered if public confidence in the Parliament is to be maintained," her report said.

Mr Dunne said United Future had acted in good faith and would now consider the implications of both Mr Brady's and Margaret Wilson's report.

The Greens, who initially believed they had reduced their bill to about $60,000, faced an $87,192 debt.

Party whip Metiria Turei said she was disappointed by the findings but the party would pay back money "ultimately" found outside the rules.

The amount was a "substantial sum" and the party would be seeking assistance from its members, she said.

"While we respect the Office of the Auditor-General, we disagree with the Auditor-General's reasoning and conclusions."