Key won’t use taxpayer money for settlement

Prime Minister John Key says the legal advice and representation incurred in the teapot tape settlement will not be met by the taxpayer.

Mr Key’s office has issued a statement saying the settlement will be met by the national leader’s office.

“The costs involved in the settlement with Mr Ambrose will not be met by the taxpayer. The funds will be raised via the National Party, or by private contributions for this purpose.

“Approval for the national leader’s budget to meet Mr Key’s legal costs, in this case, was sought and granted from the speaker in 2013.”

The PM's about-face follows criticism from Otago Law Professor Andrew Geddis, who told NBR that Parliament's leaders' fund can be used for defamation case costs, but not to cover the costs of settling a case. Meanwhile, NBR Politics Editor Rob Hosking called politicians' ability to tap the fund at all a "moral hazard."

At his post-cabinet press conference yesterday, Mr Key said a payment would only be made from the leaders' fund if it was "within the rules."

A spokeswoman for Mr Key says the prime minister’s office “won’t disclose how much the settlement was.”

Yesterday freelance news cameraman Bradley Ambrose dropped his $1.25 million defamation action against John Key after the pair reached a settlement, heading off a court case due to be heard from April 4.

Mr Key conceded Mr Ambrose did not intentionally record a conversation between himself and Act's Epsom candidate John Banks in the run-up to the 2011 election.

Mr Key has come under fire since the settlement was announced yesterday morning.

Green Party co-leader Metiria Turei says MPs are explicitly prohibited from using parliamentary money for legal settlements.

“The rules also confirm the prime minister should have asked the speaker if he wanted his legal fees paid by Parliament. John Key should also state whether he followed that rule too,” she said.

Today’s announcement will come as welcome news to NBR poll participants. Asked if Mr Key should pay the settlement from his own pocket, 61% agreed. Some 39% say taxpayers should foot the bill.

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