Breaking a Term Deposit

NZ First has finally said it will pay back it's illegal spend from during the 2005 Election Campaign. But not until next month, when the Term Deposits of the Party are due to roll over.

However, breaking a Term Deposit is quite easy. Technically, a bank has the right to say no, but usually the rate is reset to the rate that applies if the deposit was for the new period, and a penalty is then deducted - usually reducing the applicable rate by 2%.

But in the meantime, the poor taxpayer is stuck paying interest on the Government Debt - out of pocket twice. Three times really - first for the illegal spend; secondly for waiting over a year to agree to pay it back; thirdly by delaying repayment.

And the NZ First party should remember they are not liable for MPs spending funds allocated by Parliamentary Services - the members who approve the spending are. And in NZ First it wouldn't be hard to work out which MP approves all spending.