Hon Simon Power
Minister of Justice

17 February 2009
   Media Statement

Minister welcomes replacement for EFA

The speedy repeal of the Electoral Finance Act 2007 by Parliament has been welcomed by Justice Minister Simon Power as the first step in returning democracy to New Zealand’s electoral finance laws.

The passing of the Electoral Amendment Act 2009 tonight, with strong cross-party support, delivers on the Government's election promise to repeal the EFA within its first 100 days.

As an interim measure, the Electoral Amendment Act reinstates the relevant provisions of the Electoral Act 1993 – the law that preceded the EFA – that deal with electoral finance, while retaining the donations regime from the EFA.

The Act:

Reinstates the election expense and campaign advertising provisions of the Electoral Act 1993.
Retains the stronger compliance and enforcement regime that was a feature of the EFA, including increased penalties for corrupt and illegal practices and serious electoral finance offences, and an extended time over which electoral finance offences can be prosecuted.
Removes the “regulated period” that started on 1 January in an election year for expenditure of political parties and candidates, and returns it to the three-month period prior to polling day.
Removes the heavy regulation of “third parties”.
Removes the concept of “financial agents”.
 
"This Act is needed to ensure there is a fair and workable electoral law in place should there be a by-election before a more enduring regime is being developed," Mr Power said.

"The EFA was enacted without the broad cross-party support that has historically characterised electoral reform, and because of that it lacked legitimacy.

"It resulted in unnecessary legal action because of confusion about who is and who was not a third party, and what did and what did not constitute election advertising.

"Now that that law is out of the way we can start work on putting an enduring law in place before the 2011 election.

"Political parties and the public will have an opportunity for input at more than one stage in this process, both before and after a new bill has been introduced

"I’m encouraged by the positive vote of the Parliament for the interim regime, and by the fact those who voted against it have indicated they want to be part of the next phase of reform.

"That gives me great hope that we can agree on a law that is both fair and enduring," Mr Power said.
ends
 

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