Labour president in firing line again 

Labour Party President Mike Williams is in the gun again, this time over what he did, or did not say in response to a controversial suggestion at a Labour Congress.

ONE News has revealed what was really said behind closed doors at Labour congress about using public service booklets for electioneering and how it differs from what the party's top official is telling the public.

At Labour Congress last weekend members were frustrated that because of the Electoral Finance Act they didn't have promotional material to distribute. One member spoke out and said they should use government department material to promote the party.

The suggestion is controversial for two reasons - it may breach political funding rules and because the public service is supposed to be neutral.

Appearing on TV ONE's Agenda programme Labour Party President Mike Williams told Guyon Espiner he didn't respond to the suggestion and denied he had endorsed it.

Williams: "According to people there I did not respond: 'that is a good idea' I simply moved on to the ... next question which was the last one, so the whole thing is an incredible media beat up. It arguably never happened."

"Make it clear it was my session and I take absolute responsibility for anything that was said there but I do not believe anything like that was said and I certainly did not hear anything like that said and neither did I endorse it."

But ONE News has obtained a recording of exactly what Williams said.

There are two voices in the recording, the first is the Labour Party member suggesting using Kiwisaver and Working for Families pamphlets from IRD and WINZ to promote Labour, the last voice is Williams.

Labour delegate: ...hand those out when you're going around and you can say this is what the Labour government brought in and by the way, the National Party voted against it in fact they're better than Labour Party material because they're informing people about things they may not be already getting."

Williams: "Well that's a damn good idea ... (clapping) ... We will have some generic stuff out for you to hand out very soon once we work out the Electoral Finance Act.

Espiner spoke with Williams after the Agenda programme went to air and Williams said he is sorry if he mislead the public but he cannot recall making the statement. he said he was struggling to hear the delegate's idea and if he did say it was a "damn good idea" he was saying so to move the session on.

In response, Prime Minister Helen Clark's office told ONE News she dealt with the issue decisively last week and that's where it ends.

Williams told Agenda this may be his last election but this is the latest in a string of errors and now some may be questioning whether he can make it that far.

Full transcript and video of Guyon Espiner's interview with Mike Williams