MPs must prove rent charges fair

Members of Parliament who claim taxpayer-funded accommodation grants for homes they own will have to show they are charging fair rents.

Speaker Lockwood Smith said he would introduce checks to ensure out-of-town MPs claiming for Wellington residences owned by family trusts or superannuation schemes were charging market rates.

He stressed that claiming the allowance for a property in which an MP had a financial interest was entirely within the rules, and there was no evidence of overcharging. But it was in the interests of transparency to ensure formal checks.

"Where there's any question of a pecuniary interest, it would seem to me that an independent valuation on the market rental of the place would be reasonable. I'm not sure it has been applied in the past."

Under Parliament's rules, MPs whose primary residence is outside Wellington can claim up to $24,000 in accommodation allowances, which can be used to pay either rent on a property or the interest but not the principal on a mortgage.

Some members of the Greens have used the allowances to cover accommodation in homes owned by a party superannuation scheme.

Many out-of-town MPs from other parties have also claimed the allowance for living in properties in which they have a financial interest through a family trust or superannuation fund.

The issue of MPs claiming for homes they live in arose after The Dominion Post revealed last week that Deputy Prime Minister Bill English claims nearly $1000 a week for living in his $1.2 million family home.

He confirmed yesterday that he took an allowance for the property while in Opposition, but did not say how much.

He has defended claiming the allowance on the grounds that staying in the house ensured stability for his family. He has also noted that taxpayers would have picked up a much larger tab had he moved his wife and six children into Vogel House the traditional residence of the deputy prime minister but at present home to Governor-General Sir Anand Satyanand while Government House is renovated.

Other ministers, including Foreign Affairs Minister Murray McCully, Housing Minister Phil Heatley, Education Minister Anne Tolley, Police Minister Judith Collins and Defence Minister Wayne Mapp, have moved out of small properties they have an interest in and rented them out while Ministerial Services leases bigger residences for them.

In the case of Mr Heatley and Dr Mapp, their properties are being let to fellow National MPs Louise Upston and Kanwal Bakshi respectively. They claimed $9234 and $9739 in accommodation allowances in the first six months of this year.

Mr Heatley said he and Ms Upston got independent valuations before the rent was set.Ms Collins said she was renting her property to a National MP, but would not say who it was.

- © Fairfax NZ News

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Andy   #4   11:10 am Aug 06 2009

There was a list of politicians Expenses the other day and Labours MPs were listed, put your little blue flag away

Adrian   #3   08:51 am Aug 05 2009

If this was Labour ministers involved in just a whiff of the stench around this issue, this newspaper would be banner headlining every little detail and screaming for resignations. It is fairly obvious with your tiptoeing about these perceived rorts that any expectation of an impartial press in New Zealand is merely a dream.

Ian McKinnon   #2   08:17 am Aug 05 2009

When the hell will you people ever give a balanced perspective. You list National MPs in detail, but fail to mention Labour. Even Tv had Goff on about his accommodation claims, but not "The Dominion", just knock the Government to try and get the hapless Labour Party some traction. A waste of time.

Milton   #1   08:16 am Aug 05 2009

Roger Douglas revealed himself as arrogant with his comments about travel expenses, now it's Bill English who has revealed himself to be arrogant. He's telling the New Zealand public that after 4 days of talking about expenses that MP's claim, we should move on.

Hang on there Bill, this is a Democracy. Shouldn't 'WE' the New Zealand public move on when 'WE' feel it's time to move on. Yes, we the New Zealand public should move on once the issue has been sorted, not when you tell us to move on.

Is Bill feeling a bit guilty that he has been exposed with his snout in the money trough, wallowing in tax payers money. And when people start talking about it, he starts sqeueling saying 'oink oink oink' you've talked about it for 4 days now, and now it's time to move on. Arrogance, Pure Arrogance.

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