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Andrew Little: Foreign donation ban a possibility

Publish Date
Tue, 27 Aug 2019, 5:24PM
Little says that there is a ban in 121 countries. (Photo / NZ Herald)
Little says that there is a ban in 121 countries. (Photo / NZ Herald)

Andrew Little: Foreign donation ban a possibility

Publish Date
Tue, 27 Aug 2019, 5:24PM

The law that allows foreign donations could be set to change. 

National MP and former Foreign Affairs Minister Todd McClay's in hot water, after it's emerged he met with a Chinese businessman abroad before a $150,000 donation made its way into party funds.

But, because the billionaire's company is New Zealand-based, it didn't break any rules.

Justice Minister Andrew Little says this shows there are emerging issues around how foreign donations can be concealed.

"Our companies regime makes it easy for donations to be channelled through that sort of process, and that's something we have to be alert to and we have to think carefully about whether we have a regime that is tight enough."

He told Mike Yardley that 121 other countries have banned foreign donations to political parties, and it is something that would be worth considering in New Zealand. 

"Last year I asked the Justice Committee to look at the issue and come up with some recommendations. I am very keen for them to do that, as this is an issue that affects every political party." 

Little says that he wants the report from the committee soon, otherwise he will turn to ministerial colleagues to avoid the issue coming up in the next election. 

He says he is open to a ban. 

"What do we gain from allowing foreign donations to political parties in our current system?"

McClay has defended the deal, telling media it was New Zealand company wanting to support the party and the contact was made in New Zealand.

"Ultimately, the law is clear that New Zealand companies are allowed to make donations. The Select Committee is currently looking at that, we need to wait and see what they come forward with."

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