TV pays for GST gaffe

Broadcasters have had to stump up for the National Party's $112,000 election advertising GST bill.

National owes broadcasters the money for unpaid GST after a "misunderstanding" between party headquarters and its advertising agency meant the party spent its entire $900,000 advertising allowance without allowing for GST.

Leader Don Brash has tried to introduce a member's bill to allow the party to pay, but MPs from New Zealand First, the Maori Party and the Greens blocked the move.

Now broadcasters are having to pay Inland Revenue.

State broadcaster TVNZ had to pay $57,369, a spokesman said.

"We did consider taking [legal] proceedings but we actually decided against that," he said. "The likelihood would be that judgment could not be entered against the party as the debt was actually illegal."

He did not rule out further efforts to recoup the money from National.

TV3 owner CanWest MediaWorks had paid $16,011, spokesman Roger Beaumont said. "We are still in discussions with the National Party in pursuit of that outstanding money."

- NZPA