Come clean on trust, Bill English told

BY VERNON SMALL
Last updated 05:00 11/09/2009

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Pressure is mounting on Finance Minister Bill English over his accommodation arrangements.

Yesterday, Labour broke its month-long silence on the matter to question his role in a family trust that owns his $1.2 million home in Karori.

Labour MP Pete Hodgson challenged Mr English to make public details of the Endeavour Trust after documents showed he signed a declaration that he had no pecuniary interest in the trust.

That was a condition for the house to be declared a ministerial residence, qualifying Mr English for a taxpayer subsidy twice that of an ordinary MP.

He declared a beneficial interest in the trust in 2008, but he has since said that changes were made "for personal and family reasons" unrelated to qualifying for parliamentary allowances.

Mr Hodgson said Mr English should issue details of the trust, with family names deleted as appropriate, so the public could judge whether he controlled it or not.

"That detail is unknown. Only Mr English can correct that situation, by releasing the trust deed now," Mr Hodgson said.

Energy Minister Gerry Brownlee, speaking on behalf of Prime Minister John Key, said Mr English should "hold his head up high because he is an honest man".

"He does not have to bend to the jealous and pathetic attacks coming from the Labour Opposition."

Last month, Mr English accepted that claiming the higher subsidy was a "bad look" and paid back more than $11,000 the difference between what he received and the allowance for an ordinary MP.

But it appears that last year Mr English, or someone close to him, sought another $20 a week of taxpayer-funded cleaning at the house.

An email released under the Official Information Act, with the sender's name deleted, asks: "Because this is a large house comparable to Bolton St in size, could I please be accorded 3 hours cleaning instead of 2?"

Other correspondence shows that an invoice for $300 for cleaning was rejected because it was above the amount that could be claimed. "You will note from the message on the business card that the amount to be claimed is five sessions of three hours @ $20 per hour total $300," it said.

In a followup letter to the Endeavour Trust, Ministerial Services acting property manager Ann Buick notes that the invoice is beyond what can be claimed, but says it has been passed on so that a claim form for reimbursement can be completed.

"As you will be paying the cleaner direct, the process for reimbursement in future will be via a claim form from the minister's office."

Before Mr English repaid the money last month, taxpayers had stumped up more than $900 a week to cover expenses on the house, including $700 a week rent, from December 2008 till July.

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Mr English, his GP wife Mary, and their family live in the house. They have six children.

A spokesman said the amount Mr English paid back included all cleaning costs, in addition to the direct costs of the lease.

No pot plants, no gas bottles, no parties

Good tenants may be hard to find, but it seems even Cabinet ministers have to cope with strict landlords.

The rental rules some have agreed to include: No pot plants, no Blu-Tack on the walls, no gas bottles, no pets, no smoking, no parties and no loud music.

And of course they must keep the premises reasonably clean and tidy. It seems they also have to cope with the usual problems encountered by tenants on moving into a new property.

Complaints lodged by one minister include that the shower wall in the ensuite was about to come off and the washing machine was "bouncing around badly". Which might explain the plaintive plea accompanying the complaint about the washing machine.

"Also are there any instruction booklets on how to use the appliances?"

But having Ministerial Services pay the bills has its advantages; it shelled out for modifications required by MPs including ventilated shelving for the house rented out to Housing Minister Phil Heatley and a high chair and change table for Broadcasting Minister Jonathan Coleman.

The tenancy agreement signed for the house being rented for Finance Minister Bill English by Ministerial Services is also of note. It requires the landlord to give two days' notice before entering the premises and to maintain the grounds and gardens. The landlord is the English family's Endeavour Trust.

WHAT THEY CAN CLAIM

* NOW

MINISTERS

Accommodation: Ministers from outside the capital are entitled to an official Wellington residence. Some are owned by the Government and others leased or rented, with an informal $700 a week cap. Non-Wellington ministers who do not take an official residence can claim a maximum $24,000 a year for accommodation.

Moving costs: Ministers taking an official residence get reasonable cost of moving into their new digs.

Security: Ministerial Services provides security at all official, Wellington and out-of-Wellington homes according to the assessed risk.

Cleaning and maintenance: Internal Affairs takes care of cleaning Crown-owned residences and will arrange weekly cleaning for other official residences on request. This includes a laundry service for linen and towels, but not personal items. Window and carpet cleaning provided as required.

Bills: Rates/rent, power, gas, heating fuel all paid direct to supplier. Up to two phone lines and one high-speed Internet connection paid for.

Television and furnishings: Official residences are provided with television, recording equipment, furniture, linen, whiteware, electrical appliances and kitchenware. A basic Sky television package is provided.

* THE NEW REGIME

Ministers will be bulk-funded for their accommodation expenses and make their own arrangements. Those who rent or lease properties will get $37,500 a year. Those who stay in the Wellington property they lived in before becoming a minister get $30,000 a year. The allowances are based on an estimate of market rents plus a small contribution toward other costs. Phones, broadband, basic Sky TV and security will still be covered as now, but not cleaning.

* OTHER MPs

MPs from electorates out of Wellington can claim a maximum of $24,000 a year for the "actual and reasonable" cost of accommodation. This can be used to pay rent or the interest on a mortgage. It can also be used for some expenses such as cleaning. MPs who choose to stay in hotels or other commercial accommodation can claim a maximum $160 a night up to $24,000 a year. Ministers who stay in other premises, such as boarding, can claim a maximum of $50 a night.

- © Fairfax NZ News

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