appears to be in response to a defamation case against former Act MP Owen Jennings who was facing bills of $200,000 after the High Court found earlier that year that he defamed the chairman of the Wool Board.

THE RULESFor ministers:

The Cabinet Manual provides automatic indemnity for cases taken against them as a minister. For actions against them personally, such as defamation, the Cabinet can approve use of public money if the matter arose from the minister's duties, such as a public speech.

For other members of Parliament:

No provision for their legal costs pre-2001. Since then, they have been allowed reimbursement of expenses to defend legal proceedings taken against them "in his or her capacity as a member of Parliament". Approval of the party leader and the Speaker is required.

Themoney comes out of the party's leader's fund - a sum given to party leaders to run their Parliamentary units and based on the number of MPs the party has.

THE CASESNick Smith: Currently receiving undisclosed level of public funds to defend a defamation case by timber preservatives company Osmose over comments he made in 2005 when an Opposition MP. Also had his costs reimbursed for defending a defamation claim by David Henderson under the rules for ministers in 1999. No public funds for other cases when not a minister, including fine of $5000 for contempt of court in 2004 over comments about a Family Court case, and two defamation actions which did not reach court.

Helen Clark: May 2001: Crown paid a $55,000 settlement to John Yelash after Helen