MPs 'need to justify use of allowances' - PM

BY MARTIN KAY
Last updated 09:18 09/11/2009

Apology From Hide

Rodney Hide
PERK BUSTED: Rodney Hide at a press conference today where he said he is sorry for using tax payers money to pay for travel for his partner.

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MPs need to get their heads around new transparency for their allowances but it will ensure more careful use of taxpayer money, Prime Minister John Key says.

ACT leader Rodney Hide will write out a cheque for nearly $12,000 today after making a grovelling apology for his "casual" use of taxpayer funds to take his girlfriend overseas – including a holiday in Hawaii.

But he says it is up to ACT founder Sir Roger Douglas to decide whether to repay the thousands in taxpayer funds he spent flying himself and his wife business class to Britain for a holiday.

Mr Hide racked up $11,952 in taxpayer-funded air travel for Louise Crome to accompany him on an official trip to Britain, Canada and the United States.

He used his 90 per cent travel subsidy to pay her fare, thus getting around the edict from Prime Minister John Key that ministers who take their partners on overseas business should not use their ministerial travel allowances.

Mr Hide spent a further $10,000 on flying to Hawaii with Ms Crome, but repaid that last week after deciding it could not be justified, even if it was lawful.

Mr Hide, who will have repaid nearly $22,000 including today's cheque, issued a humiliating apology for the spending, saying he had been blinded by the comforts of office.

"You do get used to the job and you get very generously provided for ... it's a hard thing for anyone to admit that they stuffed up.

"I can well understand hard-working Kiwis, particularly in these tough economic times, being appalled at me taking an overseas trip at their expense, even though it was within the rules."

Prime Minister John Key Key today said MPs needed to accept that while they were spending within the rules transparency would change how they operated.

"We live in a world of enormous transparency where everything you do will be judged," he told NewstalkZB.

"It doesn't mean you shouldn't do things. . .we've got to be careful we don't let this spook MPs so they don't do anything."

However, MPs had to be able to justify what they spent taxpayer money on: "You've just got to be able to stack up your actions."

Mr Key said Mr Hide had learned from his mistakes.

"He's rectified that and I think the people of Epsom will stick with him," he said.

Mr Key told TVNZ's Breakfast programme Mr Hide's apology was the most fulsome he had seen from a politician.

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"What he did was probably not appropriate given the campaign that he'd waged. . .you live by the sword you die by the sword."

Mr Hide also had to apologise for remarks he made, saying Mr Key had done little in government and being critical of Cabinet colleagues.

Mr Key said Mr Hide had his "absolute" confidence and that of ministers and "no one's taking them (the comments) seriously."

Mr Hide said none of his MPs or party officials had asked him to repay the money, but the issue was clearly causing political problems for the ACT leader, who has made a career as a perk-buster. He admitted that several party members had contacted him to say they were unhappy.

But he said it was up to Sir Roger to decide whether to follow his lead and make a refund.

Sir Roger – who has spent his first year back in Parliament attacking wasteful spending – has defended his business-class travel bill, saying he is entitled to it as a long-serving MP.

He said yesterday that he was aware Mr Hide would repay the money for his partner's overseas travel, but the line went dead when asked if he would follow suit. Efforts to reconnect were unsuccessful.

- With NZPA

- © Fairfax NZ News

60 comments
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TerjeP (say tay-a)   #60   11:17 pm Nov 11 2009

Rodney set a high standard and then failed to meet it. He has acknowledged the failure, apologised and paid back the cash. In my book he is still ahead of those that never bothered to set a high standard in the first place.

Jane   #59   11:23 am Nov 10 2009

With the salary these guys are on there shouldn't be any subsidies for non business related travel at all. My boss sure as heck doesn't subsidise my holiday costs. Why should they(MPs)be the exception??

david   #58   10:36 am Nov 10 2009

The spotlight is on Rodney and Hone at the moment. This is the opportunity of a lifetime for some good investigative journalism....go dig into the spending of not only the politicians...go look at who goes to conferences and trade shows from some of the govt departments and health boards etc etc etc ????? I smell a rat.

Bassa   #57   02:26 am Nov 10 2009

It's a bit rich for MP's to claim they're 'entitled' to this perk because they work long hours and spend long periods away from home. Many workers, read taxpayers, also have jobs where they may spend long periods away from home (and get paid substantually less than Govt. Ministers) but don't get to take their wifes/girlfriends on business trips at the companies expense. If MP's don't think they're well paid enough for the job without having to have all these extra perks then perhaps they should look at leaving politics and getting a job in the real world - where they will then realize what hard work means.

Stephen   #56   10:25 pm Nov 09 2009

From someone who knows - the standard is business class - and it puts a challenge out there to all other MP's (Government and Opposition) show us your cheque books - I bet they don't and the media will go silent - as usual All the info is available (every cent spent) but I bet the Media don't publish it Who has spent it and who's paid it back ?

Vettori   #55   07:58 pm Nov 09 2009

Rodney has fronted up, fessed up, and paid up. Integrity. NOTHING From the Labour Party members such as Chris Carter. NOTHING From the Maori Party members like Hone Harawira. All your ACT haters get over it and look at your own pathetic parties before passing judgement.

Wendy (Lizzie) Harding   #54   05:35 pm Nov 09 2009

Unfortunately Rodney Hide has now ruined all trust we had in him to keep our politicians on the straight and narrow as much as possible. Are all politicians who took their partners away going to pay us back our hard earned taxed money? We don't really care who they take away with them as long as the taxpayer isn't footing the horrendous travel bill. It really has gotten out of hand and there doesn't seem to be any restraints on their personal spending - as a point of interest how does the whole travel system work when politicians decide they need to go overseas and who does their bookings? Maybe Rodney's blonds partner won't be so interested in him if her free travel perks are stopped? Hide and Harawira (re his disgusting language and racist comments) need to be removed from their taxpayer funded lifestyles. Lizzie - Palmerston North

Barb   #53   03:26 pm Nov 09 2009

Rodney can no longer criticise, condemn or call to account inappropriate spending or jaunting around by public servants - he has so clearly demonstrated his own lack of integrity when it comes to putting his snout in the trough. We can't take himn seriously - he got caught and his apology and payback is only to try and redemm himself. Well he's blown it. This sort of caper is not forgivable and voters have long memories when it somes to politicians being hypocritical.

Fred   #52   03:01 pm Nov 09 2009

I am always astonished that corruption in New Zealand is always cited as very low. Perhaps they are only referring to illegal corruption which is unecessary here because the government has institutionalized corruption. MP's and government seem not to realize that there are only a few million people here to pay taxes. We must fund all of their political largess, the breaking point is near.

JGM   #51   02:13 pm Nov 09 2009

Seeing will be believing. Answer me this, why do they get the perks to begin with? If it isn't business related it just shouldn't be there


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