Foreign donations ban under urgency

The Government will ban foreign donations to political parties of more than $50 in a single day, Justice Minister Andrew Little has announced.

But the law will not stop foreign-owned companies based in New Zealand from donating.

‘‘There’s no need for anyone other than New Zealanders to donate to our political parties or seek to influence our elections,’’ Little said.

‘‘The risk of foreign interference in elections is a growing international phenomenon and can take many forms, including donations. New Zealand is not immune from this risk.’’

Little introduced the legislation yesterday and it was to pass under urgency.

The National Party would support the bill but members were ‘‘appalled’’ at the process being used to pass it in a single day.

The law would have a $50 threshold for foreign donations to ensure that small-scale fundraising was not affected. There is an existing ban on foreign donations of more than $1500.

The law change follows intense lobbying from the Green Party for tighter foreign interference laws.

The ban is part of Green Party justice spokeswoman Golriz Ghahraman’s member’s bill, the Electoral (Strengthening Democracy) Amendment Bill.

‘‘Limiting foreign donations to $50 will reduce undue influence from powerful vested interests and create a healthier and fairer system,’’ she said.

Ghahraman called for more to be done. ‘‘We would like to see a raft of further measures to ensure equal access to our democracy. This includes implementing the 2012 MMP Review recommendations, reducing the anonymity threshold for all donations, and allowing Ma¯ ori to change roll type at any time,’’ she said.

The bill does not change the rules that allow foreign donations to political parties made through New Zealand companies.

This situation was in the news this year after National received $150,000 from a company owned by Lang Lin, a Chinese racing billionaire in 2017. The transaction skirted foreign donation rules as it was made via a New

Zealand company. Prime Minister Jacinda Ardern said at the time the donation was ‘‘outside the spirit of the law’’.

The bill also introduces other changes. Party secretaries and candidates will now have to take ‘‘reasonable steps’’ to ensure that a donation, or a contribution to a donation over the $50 foreign donation threshold, is not from an overseas person.

How this will work is not yet clear. The Electoral Commission will issue guidance on what these ‘‘reasonable steps’’ will look like.

Party secretaries will now have to reside in New Zealand to make it easier to enforce compliance.

National Party electoral reform spokesman Nick Smith said yesterday that he was appalled at the lack of process.

‘‘The Government is panicking in respect of both the polls and the scandal around the NZ First Foundation, and is trying to create a distraction,’’ Smith said.

‘‘We’re only likely to make errors in rushing legislation through in this extraordinarily panicked way.’’

A National spokesperson said the party would support a shortened select committee process.