World Cup may be party central time for MPs' spending

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A cap on politicians' hotel bills will not apply during the Rugby World Cup next year, leaving the taxpayer to fork out the extra for the expected increases in hotel costs during the tournament.

Speaker Lockwood Smith issued a new set of rules yesterday, setting out MPs' travel and accommodation entitlements, including the Rugby World Cup provision that suspends limits on travel and accommodation costs.

Usually MPs are limited to claiming back hotel costs of $180 a night in Auckland or $160 a night in other places. Those limits will not apply for two months while the World Cup is on next year.

A spokesman for the Speaker said the provision was not intended to give MPs a free night to enjoy World Cup games. Accommodation costs could be claimed only if the trip was for parliamentary work.

"MPs would not be able to go about their business if the cap was not lifted because the chance of getting accommodation in Auckland especially during the World Cup would be practically impossible and the cost well above the current cap."

However, it is not difficult to combine business with pleasure, and MPs may be tempted to do so. If the election is held in November, MPs are also likely to be travelling frequently at that time.

The Speaker's new rules also reinstate a `freeze' on international travel discounts some current MPs will be able to claim after they leave Parliament. It will affect a few MPs elected in 1996 whose travel discounts when they leave will be frozen at the 2008 level of 75 per cent instead of 90 per cent. MPs elected in 1999 or afterward do not qualify for the perk, worth about $10,000 a year.

The perk for former MPs cost taxpayers about $1.5 million last year and the cost has increased by 35 per cent since 2000.

The Speaker has also tightened the rules for spouses' international travel. They will now only be able to use an MP's travel discounts when travelling with the MP or to meet the MP.

Dr Smith is also considering recommendations by Sir Doug Kidd and economist Philip Barry in a review of MPs' entitlements – including the proposal to cash in the international travel perk for a salary increase of about $10,000, and changing accommodation allowances.