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Banks saga could lead to law changes

08:28 Fri Jul 27 2012
AAP

Changes to local government election laws are likely following the police decision not to lay charges against ACT leader John Banks.

After a two-month investigation, police said on Thursday there was insufficient evidence to prosecute Mr Banks over allegations he failed to properly declare donations for his Auckland mayoralty campaign in 2010.

Prime Minister John Key says that means Mr Banks is in the clear but Labour is still saying he should be stood down.

Local government election laws are loose compared with those that cover general elections and Mr Key says it would make sense to bring them into line.

"There's nothing special about local government elections... obviously MPs or those who want to run for mayor should be expected to comply with the laws but some consistency between the two makes sense."

Labour also says the laws should be tightened up.

Party leader David Shearer says Mr Banks asked for donations, received them, and then they were recorded as coming from anonymous donors in his election return.

"Everyone in New Zealand knows John Banks is guilty," he said on Thursday.

"The police can't prove it but everyone in New Zealand knows what's gone on and John Key knows as well, and he should stand him down."

Mr Banks has a support agreement with the government and holds ministerial portfolios.

Police said the returns were compiled by a campaign volunteer.

Mr Banks sought and received confirmation that it was an accurate return of his expenses before signing and transmitting the return."

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