Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

National confirms GST error in broadcast spend

Media Release
New Zealand National Party

6 December 2005

National confirms GST error in broadcast spend

The National Party today confirmed it made an error in the booking of its broadcast radio and television advertising for the 2005 election campaign.

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, as had been allocated by the Electoral Commission.

National discovered the error when it was reconciling invoices received for August and September (the two periods for which campaign advertising was permitted) prior to sending the September invoice on to the Commission for payment. The Party advised the Commission immediately and has since been working with it to resolve the issue.

“It was a genuine error that came about as a result of a misunderstanding between the two organisations,” National Party Campaign Manager Steven Joyce said.

“We believed we had told the booking agency that the amount included GST, and they assumed it was exclusive of GST. Unfortunately we don’t have anything in writing between us confirming the amount including GST.

“Commercial organisations generally work on an “excluding GST” basis but political numbers are calculated inclusive of GST. Unfortunately we didn’t pick up the error until it was too late to correct it.”

President Judy Kirk said the Party took responsibility for the mistake. “Of course we wish it hadn’t happened but it has. Unfortunately the mistake cannot be undone. We are working with the Commission to deal with the issue,” she said. “We would of course be prepared to pay the GST amount to the affected broadcasters, but under the Act we are not permitted to do so”.

The error is not an Electoral Act matter and does not affect the election results. The allocation of radio and television advertising funds is determined under the Broadcasting Act, which provides for a possible fine if any Party is found to be in breach of the Act.

Parties are given a taxpayer-funded allocation for advertising for each General Election. For the 2005 election the National Party was allocated $900,000 by the Electoral Commission, while the Labour Party was allocated $1.1million. All figures include GST.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>

 

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

ALSO:

Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

ALSO:

Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>

ALSO:

State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>

ALSO:

Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages