Door opens for election spend-up

Tens of millions of dollars more could be splashed out on taxpayer-funded advertising at the next election under changes that appear to free up the amount that political parties can spend.

A row has broken out over the changes, with National accusing the Government of in effect introducing a back-door form of state funding.

But National does not appear to be above using the same taxpayer-funded kitty that is in dispute; it has mailed out probably thousands of glossy pamphlets promoting John Key, while publicly accusing Labour of planning to rort the system by dipping into the same fund.

Deputy Prime Minister Michael Cullen produced a card and pamphlet yesterday that was put out by National in May and marked with the parliamentary crest, showing it was paid for out of Mr Key's leader's budget.

National would not say how much it had spent on the material, which includes a card emblazoned with Mr Key's picture and labelled "Join the Conversation".

Dr Cullen also said that National privately supported legislation due to be debated this week, which rolls over rules - drafted in the wake of an auditor-general's report last year - that allowed spending on items such as Labour's ill-fated pledge card and the material promoting Mr Key.

The report called all such spending into question in the three months before an election and possibly beyond that.

National says the legislation allows "unbridled government election spending" - but it appears that it is not just the government that benefits. All parties will be free to promote their policies with money from their parliamentary leaders' budgets, without affecting the statutory limit on the amount they can spend in an election year, according to National.

That opens the door to the biggest-spending election so far, with parties potentially able to spend as much as $17 million from their leader's and other budgets, above what they would usually be able to spend in the three months before an election.

The bill allows for government funding of political advertising as long as it does not seek votes for a party, encourage people to join a party or solicit financial support.

Dr Cullen told Parliament yesterday that National had told Labour Party officials privately it supported the legislation. "(It) made it clear for political reasons that it had to oppose it in public."

But National's deputy leader, Bill English, rejected Dr Cullen's assertion and produced an e-mail from chief of staff Wayne Eagleson to his Labour counterpart Heather Simpson, explaining National's opposition to the bill.

Mr English said National believed there should be tight restrictions on the use of the parliamentary leaders' budget in the three months before an election.

- © Fairfax NZ News