$300,000 deal? Yeah, nah: Peters

NZ First leader Winston Peters is blaming a memory lapse for saying all his MPs had signed a contract holding them liable for an up to $300,000 penalty if they resigned from the party.

He now says no MPs signed it. A clause in the party’s constitution states that every NZ First list MP or constituency MP must sign a “resignation obligation contract” which imposes a “liability for liquidated damages in the sum of $300,000” if they resign or are expelled from caucus or the party. It was designed to deter MPs from staying in Parliament after leaving the party.

National MP Nick Smith made a privileges complaint with Parliament’s speaker Trevor Mallard over Peters’ comments on August 16 that all his MPs had signed such a contract.

Smith said it meant the NZ First MPs had breached Standing Orders by failing to declare a financial interest in the Electoral (Integrity) Amendment Bill because it would relieve them of a potential liability.

Mallard wrote back saying that because none had signed the contract, there was no breach.

Asked why he had said all MPs had signed, Peters said that on later examination, he discovered none had: “That was my memory. It was a constitutional change made some considerable time ago.”

Peters said he wouldn’t make them sign it now because it was obsolete.

“It was only a holding position until such time as a bill like this came along, and it has.”

Smith said Peters had only changed his tune to avoid a Privileges Committee hearing.