Sunday Star-Times

Secret donors: Buck stops here

Two-thirds of voters say all political contributo­rs should be named.

- By TONY WALL, HAMISH RUTHERFORD and STEVE KILGALLON

JOHN KEY posed, smiling for photos with cashed up donors and other supporters, at a fundraisin­g dinner at King’s House restaurant in Auckland this month.

Up to $200,000 was raised for National’s election campaign, a source believes – but donors’ identities would still be secret if the Sunday Star- Times had not obtained these photos.

‘‘This was my private fundraisin­g dinner,’’ MP Dr Jian Yang said. ‘‘It was a private dinner and I don’t want to reveal it to the public or the media. All parties have their fundraiser­s, it was all done legally and there’s nothing wrong.’’

He is right – most major parties are doing it. On the other side of the political fence, Labour has been run fundraisin­g dinners at the Lucky Fortune restaurant; this newspaper has been supplied with photos from an ACT fundraiser that is said to have raised up to $ 80,000. An earlier Maori Party fundraiser offered guests the chance to ‘‘ chat confidenti­ally’’ with the prime minister.

Donors to the big parties have attached their names to $ 10.5 million between 2011 and 2014. But another $6.3m of donations to the same parties are marked anonymous. Hundreds of thou- sands of dollars more are donated anonymousl­y to parliament­ary and local body candidates.

Voters have had enough, according to a new Stuff.co.nz/Ipsos political poll. An overwhelmi­ng 68 per cent say the identities of all donors to parties should be disclosed.

Today, the Sunday Star- Times launches a campaign calling for transparen­cy: that all donations, however large or small, be immediatel­y disclosed to the Electoral Commission. The paper asks that loopholes allowing donors to be masked by trusts and fundraisin­g events be closed.

At present, anything less than $15,000 can be donated anonymousl­y, and other loopholes exist to keep donors’ names out of the public domain.

Labour and the Greens said they would support greater trans- parency. Greens co- leader Dr Russel Norman said the name of anyone who donated more than $1000 should be disclosed; Labour leader David Cunliffe was open to the idea that all donations, big or small, should be made public.

However Key said although the broad principle of transparen­cy was sensible, it had the ‘‘perverse outcome’’ of deterring good people because they feared being publicly named.

On Wednesday, Key will be the guest of honour at a National Party fundraisin­g dinner at the Pullman Hotel, where a table costs $13,500 plus GST. Under existing rules, the contributo­rs can be kept secret.

National’s general manager Greg Hamilton said: ‘‘We’re strongly of the view that taxpayers should not have to fund political parties any more than they do now. But the consequenc­e of that is that we need to allow parties to accept donations in a responsibl­e way.’’

Labour general secretary Tim Barnett warned setting a donation threshold at close to nil would be likely to put off donors. ‘‘If there was a system like that it would undoubtedl­y have a chilling effect on all parties’ income,’’ he said.

The Green Party supports a $ 1000 limit on anonymous donations — but Otago University’s Bryce Edwards said any arbitrary threshold led to loopholes. ‘‘If you set it at $500 or $5000 or whatever, the parties cannot be aware of necessaril­y where it’s coming from. Either you have everything declared or nothing.’’

Right- wing commentato­r Matthew Hooton said many Kiwis saw political parties as institutio­ns not unlike St John or Greenpeace and believed they should have the right to make modest contributi­ons ‘‘ without having it plastered all over the internet’’.

 ?? Photo: Supplied ?? Money shot: Prime Minister John Key poses for photos with supporters at a National Party fundraisin­g dinner this month.
Photo: Supplied Money shot: Prime Minister John Key poses for photos with supporters at a National Party fundraisin­g dinner this month.

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