2005 New Zealand election funding controversy

April 2024 June 2020 The 2005 New Zealand election funding controversy occurred in the aftermath of the 2005 New Zealand general election. Under New Zealand's political system, parties may only spend, during the 90 days before the election, up to a certain amount on campaigning (excluding broadcasting). They must raise that money from their own sources.Election expenses and returns Elections New Zealand August 2005 http://www.elections.org.nz/elections/e5_party_return_expenses.html https://web.archive.org/web/20061002111042/http://www.elections.org.nz/elections/e5_party_return_expenses.html 2 October 2006 25 October 2006 dead Other funds are available through the Parliamentary Service to members of Parliament for "parliamentary purposes", which may include advertising but not "electioneering material".Brady Kevin Advertising expenditure incurred by the Parliamentary Service in the three months before the 2005 General Election Office of the Auditor General 12 October 2006 18 October 2006 http://www.parliament.nz/NR/rdonlyres/E984B1D8-AEF3-49F0-A45B-B526CF2B7101/41876/DBHOH_PAP_14263_3664.pdf https://web.archive.org/web/20061124012211/http://www.parliament.nz/NR/rdonlyres/E984B1D8-AEF3-49F0-A45B-B526CF2B7101/41876/DBHOH_PAP_14263_3664.pdf 24 November 2006 live Following the 2005 election, there was widespread debate as most parties had breached either election or parliamentary spending rules in some respect. Election spending allegations Labour Labour and five other political parties were investigated for alleged breaches of election spending rules relating to the 2005 election. The Electoral Commission, the independent body charged with supervising compliance with campaign rules, referred the Labour Party to the police after finding that they had overspent by over $400,000.Election expenses - Labour referred to police & parties slammed for lateness Elections New Zealand 9 February 2006 http://www.elections.org.nz/news/ec-media-labour-lateness-090206.html 10 September 2006 2 October 2006 https://web.archive.org/web/20061002111058/http://www.elections.org.nz/news/ec-media-labour-lateness-090206.html dead Labour's election campaign included the production, using Parliamentary Service funds, of a "pledge card". The party had wanted to exclude the $446,000 it spent on the pledge cards from its campaign expenses, but the Electoral Commission ruled the pledge cards should be included.Thomson Ainsley Labour escapes charges on pledge card but case found The New Zealand Herald 18 March 2006 http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10373214 2006-10-18 The police found that "there was insufficient evidence to indicate that an offence under s214b of the Electoral Act had been committed."No prosecutions for electoral complaints New Zealand Police 17 March 2006 http://www.police.govt.nz/news/release.html?id=2345 18 October 2006 https://web.archive.org/web/20060618232653/http://www.police.govt.nz/news/release.html?id=2345 18 June 2006 dead While police considered "there was sufficient evidence to establish a prima facie case" of an offence under section 221 of the act (which requires a party secretary to authorise party advertising in writing), they decided not to lay a prosecution, preferring instead to warn Labour that similar future offences would risk prosecution, because it was not clear that the offence was intentional. They said a number of other parties had also used similar tactics and it would have been unfair to single Labour out. National National was left owing a number of broadcasters $112,500 after spending its broadcasting allowance without accounting for GST. National argued that "due to a misunderstanding between the Party and its advertising booking agency, the agency booked advertising for National on radio and television for the campaign totalling $900,000 excluding GST, instead of $900,000 including GST".National Pushes Limits of Campaign Spending 23 July 2005 http://www.scoop.co.nz/stories/HL0601/S00049.htm Scoop 28 September 2006 Police were not able to attribute responsibility for the mistaken GST over-expenditure to either the NZ National Party or to the Party's media buying agency and did not charge either. Labour criticised the use by the National Party of trust funds to facilitate large anonymous donations, alleging American multi-millionaire Julian Robertson as a contributor. Robertson, a friend of National leader Don Brash, had connections to the Republican Party in the US. However, National Party campaign manager Steven Joyce stated, "It is possible that [Mr Robertson] made an anonymous donation. It is also possible that he may have given to one of the trusts that periodically makes donations to us but again I have no knowledge of that. They don't tell me who gives the money so I don't know."List Kevin Mallard Attacks National's Use of Trust Funds Scoop 23 July 2005 http://www.scoop.co.nz/stories/HL0507/S00308.htm 18 October 2006 Spending outside of campaign funding limits is permitted up to three months before election date.Election expenses and returns Elections New Zealand August 2005 http://www.elections.org.nz/elections/e5_party_return_expenses.html#gen3 25 October 2006 https://web.archive.org/web/20061002111042/http://www.elections.org.nz/elections/e5_party_return_expenses.html#gen3 2 October 2006 dead Labour also criticised Brash's use of the parliamentary leader's fund (also supplied through Parliamentary Services) to pay for his advisor, Bryan Sinclair, alleging he was an election strategist.http://www.stuff.co.nz/stuff/0,2106,3834764a6160,00.html Brash under fire for aide's pay 21 October 2006 https://web.archive.org/web/20061108215915/http://www.stuff.co.nz/stuff/0%2C2106%2C3834764a6160%2C00.html 8 November 2006 dead http://www.scoop.co.nz/stories/PA0610/S00412.htm Brash's predictable fall from moral high ground 20 October 2006 Scoop 21 October 2006 Auditor-General report The Auditor-General investigated publicly funded party advertising for the 2005 election, with a preliminary finding that much of the spending was unlawful being leaked. A final report was released on 12 October 2006. It found that $1.17 million had been improperly spent, as follows: Labour Party: $768,000 New Zealand First $150,400 Green Party $80,900 United Future $63,800 ACT $17,800 National Party $11,300 Māori Party $48 After a draft of the Auditor-General's report was leaked, the National Party repaid the amount that the report said was spent by it unlawfully. Labour strategist Pete Hodgson said on 13 September 2006 that his party would not be repaying any money, and the Government might introduce legislation to legalise the spending.Oliver Paula We'll pay it back, pledge Greens The New Zealand Herald NPA 21 September 2006 http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10402287 1 November 2006 The Speaker of the House, who has responsibility for the Parliamentary Service, sought a legal opinion in response to the Auditor General's report.Speaker responds to Auditor General Office of the Speaker 13 October 2006 http://www.parliament.nz/en-NZ/Admin/Speaker/PressReleases/9/5/a/95ad213d0c94486a83cd87979b107883.htm 25 October 2006 22 May 2011 https://web.archive.org/web/20110522205620/http://www.parliament.nz/en-NZ/AboutParl/HowPWorks/Speaker/PressReleases/9/5/a/95ad213d0c94486a83cd87979b107883.htm live While she did not agree with the legal analysis of the Auditor General, the Speaker, Margaret Wilson, recommended that legislation be passed to retrospectively validate expenditure, that parties should pay back their overspending, not as a legal obligation, but in order to maintain the confidence of the public, that the administrative processes of Parliamentary Services should be reviewed, and that legislation be developed to clarify the law on expenditure. The Labour Party announced immediately after the report was published that it would repay the money it owed.Labour to pay back election spending The New Zealand Herald 12 October 2006 http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10405610 18 October 2006 Helen Clark said "Labour strongly maintains that it spent its parliamentary budget within the rules as they were understood at the time, and in the same way as other parties have over a long period of time. Given the Auditor-General’s new ruling, however, Labour will refund the spending identified".Labour to refund funding New Zealand Labour Party 12 October 2006 http://www.labour.org.nz/news/latest_labour_news/news-061012/index.html 18 October 2006 https://web.archive.org/web/20061023085134/http://www.labour.org.nz/news/latest_labour_news/news-061012/index.html 23 October 2006 dead Minor parties The Progressive Party was the only party found by the Auditor General not to have misspent parliamentary funding. All the other parties except New Zealand First repaid their misspent funding.Charity turns down NZ First's donation http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10516988 The New Zealand Herald NZPA 18 June 2008 26 April 2009 The Māori Party stated in September 2006 that during the election campaign an anonymous donor offered them $250,000 on the condition that they backed a Labour-led government after the election. The offer was not accepted. Labour denied any knowledge of the offer, and both Labour and National suggested holding an inquiry into the offer. A spokesman for the Electoral Commission said the offer did not break any provisions of the Electoral Act, but Auckland University law professor Bill Hodge considered that it may fall within the Crimes Act definition of bribery and corruption.Maori Party don't know who offered $250,000 NZPA 29 September 2006 http://subs.nzherald.co.nz/section/story.cfm?c_id=1&objectid=10403602 https://archive.today/20130223042817/http://subs.nzherald.co.nz/section/story.cfm?c_id=1&objectid=10403602 dead 23 February 2013 The New Zealand Herald 31 October 2006 Third party campaigning Shortly before the 2005 election, anti-Labour and anti-Greens pamphlets were distributed to a large number of New Zealand mailboxes. Unlike party advertising, the pamphlets' origins were not made explicit. In particular they criticised Green party policy, claiming that the Greens' policies were "reminiscent...of communists" and the Greens planned to "disarm our forces",http://www.greens.org.nz/searchdocs/other9194.html Dirty tricks campaign: point-by-point rebuttal 14 October 2006 dead https://web.archive.org/web/20061005005756/http://www.greens.org.nz/searchdocs/other9194.html 5 October 2006 terms which the Greens considered to be outright lies - inflammatory and misleading, as was much of the content of the pamphlet. Immediately after the election, the Greens stated that the "... pamphlet drop probably cost the party a seat", and perhaps enough to have governed alone with Labour.Greens welcome Brethren inquiry Newstalk ZB http://www.nzherald.co.nz/event/story.cfm?c_id=1500891&objectid=10352080 26 October 2005 21 October 2006 The pamphlets were released with minimal information as to who had funded them, with only the names and PO Box addresses of individuals. Former members of the Plymouth Brethren Christian Church (formerly known as the Exclusive Brethren) recognised those names and informed the Green Party and the media of their links with the Brethren, which had been involved in a similar campaign in Australia. The National party and its leader Don Brash initially denied knowing about the pamphlets, but Brash later admitted that he had met with the Brethren three or four times during the campaign, where he was told "they planned to run some advertisements in the media, particularly around defence and health policies". Brash asserts that he and his staff advised the Brethren to check the legality of their advertising and that National had no control over its content. Brash also says that he did not recall their intention to issue anti-Green pamphlets.Brash Don Don Brash Writes: Nicky Hager's book Scoop: Independent News 6 December 2006 http://www.scoop.co.nz/stories/PA0612/S00108.htm 8 December 2006 https://web.archive.org/web/20061212222413/http://www.scoop.co.nz/stories/PA0612/S00108.htm 12 December 2006 live Brash and other National supporters noted that unions have funded third party advertising in support of Labour, and argued that the Brethren pamphlets were equivalent. Labour Party strategist Pete Hodgson responded that advertising paid for by unions was declared within Labour's budget and explicit about who had funded and approved it. Hodgson Pete Brash lies continue New Zealand Labour Party http://www.scoop.co.nz/stories/PA0609/S00090.htm 5 September 2006 21 December 2006 Scoop University of Otago electoral law expert Andrew Geddis' opinion was that National probably did not break the law, but that the party's actions "stank" and that the electoral system was like "panel beaters designing intersections". In addition to the pamphlets, the Plymouth Brethren Christian Church assisted the National Party through help with man-power, rather than direct donations. The group had collected a "war-chest" of $1,200,000, though there is no evidence they spent anywhere near this much during the election campaign.24 September 2006 http://www.stuff.co.nz/stuff/0,2106,3807544a11,00.html Brethren cost Nats win - Rich https://web.archive.org/web/20070930060039/http://www.stuff.co.nz/stuff/0,2106,3807544a11,00.html 30 September 2007 dead The Plymouth Brethren Christian Church members had originally intended to openly support National but modified the pamphlets to an invitation to "Change the Government" after consulting with the Chief Electoral Officer and being informed that otherwise this would count towards National's spending. The issue of Brethren involvement led to Labour calls for compulsory disclosure of large donations to political parties within altered campaign finance legislation.Young Audrey Clark plans new law to block Brethren The New Zealand Herald NZPA 12 September 2006 http://subs.nzherald.co.nz/topic/story.cfm?c_id=221&objectid=10400873 13 October 2006 https://archive.today/20130222223315/http://subs.nzherald.co.nz/topic/story.cfm?c_id=221&objectid=10400873 22 February 2013 dead Activist Nicky Hager felt there were clear distinctions on the legal advertisings of the Unions and what he alleged as obvious violations of the election act section 221 by not only the Plymouth Brethren Christian Church with full knowledge of members of the National party (The Hollow Men: A Study in the Politics of Deception p238), but also third party spending by several other groups including the Horse Racing Lobby. Hager adds rhetorically, "Why was this not picked up by Auditor-General Kevin Brady...?" (The Hollow Men: A Study in the Politics of Deception p240) Darnton's lawsuit On 29 June 2006, Bernard Darnton, leader of the Libertarianz, sued Helen Clark for allegedly misappropriating public funds to pay for her "pledge cards" during the 2005 election. Some commentators labelled the lawsuit a stunt, although it received media coverage as concern about the "pledge card" funding grew. The Auditor-General and Solicitor-General both stated, in the Auditor-General's report to Parliament, their opinion that the pledge card expenditure was a breach of the Public Finance Act.http://www.stuff.co.nz/stuff/sundaystartimes/0,2106,3792193a6005,00.html Chapple Irene Top QC takes PM to court The Sunday Star-Times 10 September 2006 25 October 2006 https://web.archive.org/web/20070930061756/http://www.stuff.co.nz/stuff/sundaystartimes/0,2106,3792193a6005,00.html 30 September 2007 dead Following the passage of the Labour Party's validating retrospective legislation on 18 October 2006, Darnton's lawsuit became defunct as the courts would rely on the retrospective provisions of the legislation.Bernard Darnton, Moral Victory for Darnton Over Pledge Card, Libertarianz party website, 17 October 2006. Political response Corruption claims Based on the draft Auditor General's report, the National Party accused Labour of corruption, with Don Brash claiming that "Helen Clark's Labour Government is quite simply the most corrupt government in New Zealand history."New Zealand National Party Speech to Zonta Club, Christchurch 7 August 2006 http://www.national.org.nz/Article.aspx?ArticleID=7645 31 October 2006 https://web.archive.org/web/20061009070015/http://www.national.org.nz/Article.aspx?ArticleID=7645 9 October 2006 dead He later amended that to "most corrupt in the last 100 years". The claim was made on the basis of deliberate over-spending under the Electoral Act being a "corrupt practice". Parliamentary debate rapidly deteriorated into shouting matches, with minor parties threatening a walk-out.Dick Tim Sects, lies, displays of hate The Sydney Morning Herald 23 September 2006 http://www.smh.com.au/news/world/sects-lies-displays-of-hate/2006/09/22/1158431897988.html?page=fullpage#contentSwap2 31 October 2006 ACT New Zealand leader Rodney Hide disagreed with the term "corruption" being applied to the spending. "The AG's report doesn't show corruption. If it did National would be corrupt too. They were found to have misspent 10k. They would be corrupt too—just not as successful! I could see it was going to get ugly once the Nats went down the tactic of consistently labelling Labour corrupt... I disagree with everything that Labour does—but they are not corrupt. Devious and cunning, yes. Not corrupt."http://www.scoop.co.nz/stories/HL0609/S00279.htm Ng Keith Blogwatch: Ng & Farrar Tag Team Hide & Norman Scoop.co.nz 20 September 2006 11 December 2006 https://web.archive.org/web/20061202215954/http://www.scoop.co.nz/stories/HL0609/S00279.htm 2 December 2006 live Sleaze allegations In response to National calling Labour "corrupt", Labour ministers Trevor Mallard and David Benson-Pope made reference during Question Time to allegations Don Brash was having an affair with Business Roundtable vice chairwoman Diane Foreman. Rumours to that effect had been circulating for some time, however the allegations were not published by the media until National MP Brian Connell raised them in caucus and the ensuing debate was leaked to the media. The Independent Financial Review first published the allegations. Investigate magazine then published a photograph with commentary implying that Clark's husband Peter Davis was gay. Other mainstream media outlets quickly republished the rumour.van Beynen Martin Davis' trouble and strife The Press 23 September 2006 http://www.stuff.co.nz/stuff/0,2106,3806123a6160,00.html 17 October 2006 https://web.archive.org/web/20070930014721/http://www.stuff.co.nz/stuff/0,2106,3806123a6160,00.html 30 September 2007 dead Clark and Davis emphatically denied the allegation. Campaigner Chuck Bird said he provided the photo to Investigate in protest against Labour's election spending.Man who released Davis images says election spending the reason NZPA 24 September 2006 http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10402703 The New Zealand Herald 17 October 2006 Soon after, and within a day of saying that personal abuse had no place in NZ politics, Clark described Don Brash, leader of the opposition, as a "cancerous" and "corrosive" presence in national affairs,Young Audrey Nothing personal, but Brash is cancerous, says Clark The New Zealand Herald 21 September 2006 http://subs.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10402288 4 November 2006 3 October 2006 dead https://archive.today/20061003194915/http://subs.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10402288 a statement for which she was later criticised. In an interview the following day she gave the example of a cartoon on the Young Nationals' website which had been there since before the election campaign, and indeed before Brash's leadership of the Party, depicting her as Star Wars villain Darth Vader telling Luke Skywalker she is his "lesbian father". Brash subsequently requested the image be taken down.Brash orders Clark image taken off website NZPA 21 September 2006 http://www.stuff.co.nz/stuff/0,2106,3804622a10,00.html The New Zealand Herald 17 October 2006 https://web.archive.org/web/20070930055647/http://www.stuff.co.nz/stuff/0,2106,3804622a10,00.html 30 September 2007 dead Told that the National Party had expressed sympathy for her, Ms Clark replied: "I have very, very prominent friends in New Zealand life who have rung me... saying they were simply amazed at the sort of people, seemingly reputable citizens, who were prepared to pass on baseless lies as if they were factual."Field Michael PM blasts rumour mongers and media Fairfax New Zealand 18 September 2006 http://www.stuff.co.nz/stuff/0,2106,3801283a10,00.html 8 December 2006 https://web.archive.org/web/20070930044309/http://www.stuff.co.nz/stuff/0,2106,3801283a10,00.html 30 September 2007 dead Clark also claimed that the Plymouth Brethren Christian Church had hired a private detective to follow Mr Davis and herself. Within a week, private detective Wayne Idour admitted being hired by the sect "to dig dirt" on Labour MPs and described some of the things he had found out as "alarming". He told the media that he would make these "alarming" discoveries public within a week. Nothing appeared.Young Audrey Brethren spy hits back at Labour APN 23 September 2006 http://subs.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10402616 https://archive.today/20061003195109/http://subs.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10402616 3 October 2006 dead 17 October 2006 The Hollow Men The Hollow Men (book) This section is essentially a summary of Nicky Hager's book(s). Needs cleanup and additional citations regarding the impact and importance of this particular book in the context of the article. August 2018 Nicky Hager published The Hollow Men: A Study in the Politics of DeceptionHager Nicky The Hollow Men : A study in the politics of deception Craig Potton Publishing 2006 Nelson, NZ 1-877333-62-X in November 2006 after an interim injunction against the publication of Brash's private email correspondence was lifted at the request of Dr Brash's lawyer.NZPA, Brash email injunction lifted https://archive.today/20120714160230/http://subs.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10412275 14 July 2012 , The New Zealand Herald, 24 November 2006. Hager claims that the National Party spent millions of dollars in its election campaign without breaching the legal spending cap.http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10412115 Hager Book: Brash assisted to power by business lobby The New Zealand Herald NZPA 24 November 2006 24 November 2006 He points to several possible breaches of the election law by National, and asserts that the scope of the Auditor General's inquiry was "very limited" and did not include illegal third party advertising. According to Hager, evidence from undisclosed sources and the leaked e-mails point to a breach of section 221 of the Electoral Act. He further asserts that the book "Postcard From Home", Brash's biography, was called a "significant marketing tool" by Brash, and that the National-produced "Fairtax postcards" were "exactly the same expense as Labour’s pledge card".Hollow 240-241 In addition, Hager disclosed a letter from the Plymouth Brethren Christian Church (formerly known as Exclusive Brethren) to Don Brash and John Key (later head of the National Party) stating that "We are working on 'our/your' campaign full-time" written in May 2005, four months before the election. According to the Sunday Star Times, this and other documents "confirm, that months before the election campaign, that National Party MPs and staff... were fully aware of the Exclusive Brethren advertising campaign and that at least some MPs had seen the draft publications".The Book That Brought Down Don Brash 26 November 2006 Sunday Star TimesAugust 2018 The sources and alleged breaches by National in Hager's book remain controversial and have sparked a debate regarding the invasion of privacy versus the public interest.Seeds of unease https://web.archive.org/web/20070930160804/http://www.listener.co.nz/issue/3475/features/7721/seeds_of_unease.html;jsessionid=02579B6827FEE2C70E18675D1302327F 30 September 2007 , Matt Nippert, The Listener, 16–22 December 2006 Vol 206 No 3475. On 27 November 2006, the Greens called for further investigation.Greens ask Police and Electoral Commission to investigate National's donations' return The Green Party http://www.scoop.co.nz/stories/PA0611/S00520.htm 13 December 2006 27 November 2006 Scoop Don Brash resigns On 12 December 2006, Don Brash resigned from the leadership of the National Party and subsequently retired from Parliament; the leadership of the party passed to John Key. Notes for Valedictory Speech http://www.scoop.co.nz/stories/PA0612/S00238.htm Don Brash 12 December 2006 13 December 2006 Scoop Speculation exists that Don Brash resigned due to the allegations in Nicky Hager's book. https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10412121 Don Brash gone at lunchtime 24 November 2006 NZ Herald NZPA 21 August 2018 However, Brash has said that the book was "not a factor" in his resignation. https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10413192 Don Brash resigns saying he made a difference 30 November 2006 NZ Herald NZPA 21 August 2018 He said that the book by researcher, Nicky Hager, The Hollow Men, which detailed his links with the Exclusive Brethren, was not a factor in his resignation. Public response Most political commentators believe that Helen Clark misjudged the public mood on the alleged spending, calling it "a beltway issue"http://subs.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10399173 https://archive.today/20130223005727/http://subs.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10399173 dead 23 February 2013 Vast majority want parties to pay back unlawfully spent money 2006-10-23 The New Zealand Herald Paula Oliver 1 September 2006 - that is, of interest only to those who are involved the political process and not of interest to ordinary voters. A TVNZ opinion pollTVNZ polls have been claimed to be consistently biased in favour of National. http://www.nzlistener.co.nz/default,3770.sm For whom the caller polls Black Joanne New Zealand Listener 198 3387 9 April 2005 8 December 2006 dead https://web.archive.org/web/20051109081232/http://www.nzlistener.co.nz/default%2C3770.sm 9 November 2005 showed a 13% lead to National during the fallout,23 October 2006 http://tvnz.co.nz/view/page/411368/835035 One News Colmar Brunton Poll: Sept 2006 but other polls showed Labour and National neck and neck.http://www.roymorgan.com/news/polls/2006/4095/ In New Zealand: Labour Up 4% To 40% - National Party Support Also 40% Roy Morgan Research 21 October 2006 8 December 2006 https://web.archive.org/web/20061107040129/http://www.roymorgan.com/news/polls/2006/4095/ 7 November 2006 dead A TV 3 poll around the same time showed Labour ahead on 4 November 2006. Labour's rating remained within 2 points consistently during the debate. For the first time, some media reported dissatisfaction with Helen Clark's leadership amongst the Labour Party Caucus.NZPA 14 October 2006 http://www.nzherald.co.nz/feature/story.cfm?c_id=1501118&ObjectID=10405897 Election spending row - Labour MPs told to pay Brady bill 23 October 2006 The New Zealand Herald Clark continued to lead the party until after their electoral defeat in the 2008 election. Dominion Post commentator Chris Trotter wrote in the 20-Oct-06 Dominion PostAugust 2018 that "Solicitor General Terence Arnold QC's "expansive" interpretation of the Parliamentary Services Act betrayed a woeful lack of knowledge about the way our political system operates", and continued: His opinion characterised parliamentarians as glorified civil servants subject to executive oversight and prohibited from spending public funds on any form of political advocacy (which he appeared to regard as a private activity). In his version of parliamentary democracy, political parties are viewed as entities extraneous to Parliament and play no role in the day to day operations of government. Mr Brady went on to compound the anti democratic, effect of the solicitor general's opinion by confining his investigation into "unlawful" parliamentary expenditure to election advertising. It was this decision, another "cock up", which allowed the Opposition to set in motion a major political conspiracy... The auditor general's office and the news media had both become important adjuncts to the Opposition's campaign to destroy Labour's political reputation. As officers of Parliament, the capacity of the Auditor-General and Solicitor-General to respond to criticism is limited. However, Jim Evans, emeritus Professor of Law at Auckland University, responded to the critics of the Auditor-General's report on a blog saying that "various attempts [have] been made in recent weeks to obfuscate the issues surrounding the Auditor-General's report on advertising expenditure by political parties in the three months before the last general election".Evans Jim In Praise of the Auditor-General 30 October 2006 http://www.publicaddress.net/default,3639.sm#post Public Address 31 October 2006 Overhaul of election funding laws The government announced that, in light of the funding problems, they would look into changing the Electoral Act 1993 surrounding election funding.http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10404114 Election funding laws to be overhauled, Clark says 21 October 2006 The New Zealand Herald 3 October 2006 Following the release of the Auditor-General's report, the Appropriation (Parliamentary Expenditure Validation) Bill was moved through Parliament in two days under urgency, being passed on 18 October 2006.http://www.nbr.co.nz/home/column_article.asp?id=16481&cid=15&cname=Politics Parliament Passes Law Validating Election Misspend 21 October 2006 27 September 2007 https://web.archive.org/web/20070927214124/http://www.nbr.co.nz/home/column_article.asp?id=16481&cid=15&cname=Politics deadhttp://www.parliament.nz/NR/rdonlyres/C56F067E-FF68-4822-B1F4-E4277B00953D/42434/DBHOH_BILL_7688_3698.pdf Appropriation (Parliamentary Expenditure Validation) Bill 18 October 2006 https://web.archive.org/web/20070927024008/http://www.parliament.nz/NR/rdonlyres/C56F067E-FF68-4822-B1F4-E4277B00953D/42434/DBHOH_BILL_7688_3698.pdf 27 September 2007 21 October 2006 live Later, the Government introduced the Electoral Finance Bill to reform electoral finance laws. See also Campaign finance References External links NZ Herald pledge card time line Hagar, Nicky. The Hollow Men : A study in the politics of deception; Craig Potton Publishing, Nelson, NZ; 1-877333-62-X; 2006 Election Funding Election Funding Controversy, 2005 Election funding Category:Political scandals in New Zealand Category:Controversies in New Zealand