MPs feel the heat on travel perks

BY MARTIN KAY AND TRACY WATKINS

Members of Parliament appear to be wavering on their generous taxpayer-funded travel perks after decades of closing ranks to defend their right to heavily subsidised overseas travel.

In a sign of the mounting pressure on MPs, Speaker Lockwood Smith asked journalists to his office yesterday in order to defend the system, after acknowledging the strain the publicity had put on MPs and their families.

He insisted taxpayers were no worse off, because the travel perk was considered part of an MP's pay package.

"The taxpayer is not paying anything for this. It's taken out of MPs' salaries."

A shake-up of allowances and salaries in 2003 had acknowledged that by lopping off the average cost of international travel by MPs from their pay rise, Dr Smith said. The amount was $5000 – a figure that had not changed significantly since then.

But as MPs face public fury over spending on overseas travel by MPs Hone Harawira and Rodney Hide, Dr Smith acknowledged that there were other options.

"Obviously I'm all the time thinking about these things ... it could be grossed up in salaries and that's obviously something that could be considered."

Asked if he was already considering that option, Dr Smith refused to say.

Labour leader Phil Goff conceded yesterday that it had become difficult to justify why MPs should get subsidised holidays.

"I think what many parliamentarians would say is that they, by virtue of the job they do, they're away from home a lot, they would like to have quality time with their spouses.

"I'm not sure that New Zealanders would accept that.

"I think New Zealanders feel that if they're going away, if it's a holiday, they're paying for it themselves and so should parliamentarians."

Mr Goff admitted using the perk to take his wife, Mary, on a trip to South Australia this year at a cost of $907. He defended the spending on the grounds the trip was mostly parliamentary business, but said he had told his caucus to limit use of the perk.

But it appears the edict was delivered after Labour MP Chris Carter racked up more than $57,000 in travel with his partner in the first six months of the year, making him the biggest spender among MPs.

Progressives leader Jim Anderton and Greens co-leader Russel Norman said the perk was hard to justify. An independent review of MPs' allowances would probably scrap it.

Prime Minister John Key did not respond to questions.

The review, under way now, is done after every election, but it may struggle to be seen as fully independent – it is being overseen by Doug Kidd, a former Speaker and National Cabinet minister.

An outside economist has also been brought in.

The travel perk was introduced during the 1970s in response to relatively low levels of pay for MPs, and allows them to claim travel subsidies worth up to 90 per cent for themselves and their spouses.

But their pay packets have risen significantly since the perk was initiated, meaning a backbencher with no additional responsibilities now earns $131,000 a year.

According to figures in the May Budget, 97 per cent of taxpayers earn less than $100,000.

TAXI BILL NEARS $2M IN A YEAR

Ordinary MPs are on track to rack up nearly $2 million on taxis and hire cars this year.

More than a decade after the furore over Speaker Jonathan Hunt running up a $29,170 taxi bill in 12 months, many MPs are spending amounts that dwarf his total – even accounting for inflation. Te Tai Tokerau MP Hone Harawira, who lives in the Far North, has spent $45,094 on surface travel in the first nine months of the year. The category mainly covers taxis and hire cars.

He defended the tally yesterday. "That's what it costs if you want to get a good MP."

For the first nine months of this year MPs spent $1,423,483 on taxis and hire cars.

In total, ministers have spent $2,404,267 on surface travel to September 30 this year.

- © Fairfax NZ News