Registered parties intending to contest a general election can apply for consideration for an allocation by the Electoral Commission of funds to buy broadcast advertising and of free time for campaign addresses provided by Television New Zealand and Radio New Zealand.  The law sets the criteria the commission must consider in making an allocation.  There is no allocation for a by-election, nor directly to electorate candidates. 

The allocation process takes about three months and the commission aims to have its initial allocation complete about five months before the last possible date for the general election.  The final allocation is made after the dissolution of parliament. Allocations may be varied later in certain circumstances.  Fast-track allocation procedures are used if there is an early election.

What is the process of allocation and administration?

The process summarised below is detailed in the Broadcasting Act 1998 part 6.

(Please note that steps 1-3 may happen in any order.)

1. Television New Zealand and Radio New Zealand are asked by the commission to tell it how much free time they will make available for broadcasting parties' opening addresses and closing addresses.  They may also include  possible scheduling, proposed conditions for its use, and suggestions on how the time should be allocated.  
2. The Minister of Justice advises the commission how much money will be available for allocation, which will be the same as for the previous election unless parliament changes it. 
3. The commission invites political parties that consider themselves eligible for an allocation to give notice of this by a deadline it sets.  Eligibility depends on giving this notice and on being registered when parliament is dissolved or expires ahead of the election. 
4. Parties which have given the required notice are invited to make submissions on how the commission should decide the allocations within the criteria outlined in the law.  A public hearing is held for parties which wish to speak in support of their written submissions.  
5. Television New Zealand and Radio New Zealand have the opportunity to comment on the proposed allocation of free time before this is finalised. Other broadcasters may be consulted if they are likely to be affected by the proposed allocation or conditions. 
6. The commission decides how it will interpret the criteria outlined in the law and makes an initial allocation.  It may impose conditions, such as a party may not spend from an allocation until the party is registered. 
7. The commission finalises and announces its allocations and any conditions.  
8. The allocations may be revised for a variety of defined reasons such as because a party has its registration cancelled or fails to nominate a party list. 
9. Parties place their advertising orders directly with broadcasters, which in turn invoice the parties. 
10. Broadcasters must make a return to the commission, no later than 10 working days after the end of the month in which the election is held, of details of every advertisement broadcast on behalf of both candidates and parties in the three months before the election.  These returns are made available for public inspection. 
11. Parties have to certify and forward broadcasters' invoices to the commission for payment.  Invoices must be received by the commission within 50 working days of the end of the month in which the election is held as the law expressly prohibits the commission paying invoices received after this time.  
12. Parties do not need to include the value of advertising placement in their return of election expenses, but do need to include the value of any advertising production paid for from their allocation.
13. If a party uses its allocation to promote an electorate candidate  then an apportionment may be required and the candidate would have to count and return the value as an election expense and donations as an expense and as a donation from the party to the candidate.

What is the allocation timetable for 2008?

Which political parties are eligible for consideration for an allocation?

Only those that:

• are on the Register of Political Parties, or intend to be at the time parliament is dissolved or expires for the general election, and
• have given the required notice to the commission in response to an invitation made and deadline advised in the New Zealand Gazette.  This deadline is also placed in major newspapers, on this website, and notified in a letter to party secretaries.

A component party of an umbrella party may apply but cannot receive an allocation if the umbrella party does.

How much time is available for allocation?

Television New Zealand and Radio New Zealand are asked by the Electoral Commission to advise how much free time they will give for the broadcast of parties' campaign opening addresses and closing addresses.  The amount of time is up to each broadcaster, who can also propose conditions about when the addresses will be broadcast and suggest allocations to parties.

In 2005, both broadcasters offered 72 minutes for opening addresses and 30 minutes for closing addresses.   

How much money is made available for allocation?

The Minister of Justice advises the commission of how much money is available for allocation, which has to be the same amount as for the previous election unless parliament changes it.  The amount available in 2005 was $3,212,000 (including GST).  The amount available in each of 1990, 1993, 1996, 1999, and 2002 was $2,081,000 (including GST).

What can a party's allocation of money be used for?

A party's allocations can only be used for producing or placing election advertising broadcast between writ day and midnight on the day before the election. 

Parties should note that the dollar amounts allocated are inclusive of GST, and should ensure that all communications, planning and ordering takes account of this. 

Allocation money spent on production must be counted and returned against the party's election expense limit (as for production paid for from other sources).  

A party may spend its allocation on advertising of an electorate candidate, but only after writ day with the cost counting and being returned against the candidate's expense limit and possibly as a donation, and the advertising otherwise conforming to the candidate advertising requirements including authorisation.  

Can a party spend its own funds to buy radio or television time in addition to any allocation from the commission?

No.  A party is not permitted to spend its own funds on broadcast election advertising whether or not it is eligible for or has received an allocation.  Candidates from a party without an allocation may still buy broadcast election advertising time to promote themselves as candidates, but not the party vote (if applicable to the party). 

What factors must the commission consider in allocating time and money to eligible parties?

The law requires the commission to consider the following factors in allocating time and money to an eligible political party at a general election:

• the number of persons who voted at the previous general election for that party and for candidates belonging to that political party; and
• the number of persons who voted for the party's candidate at any by-election held since the previous general election; and
• the number of members of parliament who were members of that political party immediately before the dissolution or expiration of parliament; and
• any relationships that exist between that political party and any other political party; and
• any other indications of public support for that political party such as the results of public opinion polls and the number of persons who are members of that political party; and
• the need to provide a fair opportunity for each eligible political party to convey its policies to the public by broadcasting election programmes on television.

The commission decides the relative emphasis to be given to each of these factors after considering parties' submissions.  It cannot consider other matters.

Parties may receive an allocation of time, or funds, or both.

Why and how could the commission vary its allocation decisions?

In specified circumstances the commission can vary the allocations made without further consultation.  These include a party: not accepting an allocation, having its registration cancelled, making a significant change in its relationships with other parties, or failing to nominate a party list.  Only a cancellation of party registration or failure to nominate a party list can trigger a reallocation after a party has started to use an allocation.  The commission may decide not to make a reallocation if amounts involved are small or time is short.  If a party loses allocation it has already spent then the commission may require the party to repay the money spent.

How are broadcaster (and any production) invoices paid?

The commission pays suppliers' accounts that have been certified by an authorised party official as payable from the party's allocation.  Payments are made to suppliers and no money is paid directly to parties.

The commission:

• aims to pay all properly authorised and payable accounts within 5 working days of receiving them from parties
• cannot guarantee in advance that a particular account will be paid and cannot provide a credit reference for a party
• will not pay any account until it has been certified by a party as payable from its allocation
• cannot pay any account that will result in a party's broadcasting expenditure exceeding its allocation
• cannot pay any account received more than 50 working days after the end of the month in which the election was held.

It is an offence for a party to spend its own funds on buying radio or television time for party broadcast election advertising, although a party is permitted to spend its own funds on production costs.

It is also an offence for anyone (including a broadcaster) to arrange for a party's election programme to be broadcast in contravention of part 6 of the Broadcasting Act 1989.

Election broadcast advertising by candidates is payable directly by the candidate's campaign fund, unless it is to be assigned to a party's allocation in which case the above provisions apply.

Does the allocation process change if an early election is called or if the commission has not made an allocation by the time parliament expires or is dissolved?

The same steps are involved, however the timing will be shorter.  If the commission has already issued a deadline for party's to notify eligibility then it may bring that date forward. 

What are opening and closing addresses?

An opening address is a presentation on behalf of a party that is broadcast soon after nomination day.

A closing addresses is a presentation on behalf of a party, usually broadcast on the evening before election day.

Who broadcasts addresses and when?

Television New Zealand is required to broadcast the addresses on one free-to-air channel with national coverage.  Radio New Zealand is required to broadcast the addresses on National Radio. They must be broadcast between 7pm and 9pm.  Opening addresses are generally broadcast over two nights soon after nomination day.  Closing addresses must be broadcast consecutively on one night.

Who decides the order in which addresses will be broadcast?

The commission decides the order of addresses, in consultation with the broadcasters.

Can a party or candidate place broadcast advertising before its opening address has been broadcast or after its closing address has been broadcast?

Yes, as long as it meets other requirements.  Party or candidate broadcast advertising must not run before writ day or after midnight on the day before election day.