Housing Minister resigns

PM abandons visit to Canterbury

BY COLIN ESPINER

Phil Heatley could return to Cabinet if he gets a favourable report from the Auditor-General over his misuse of expenses.

He told a media conference he offered his resignation to Prime Minister John Key this morning and it had been accepted.

Key revealed that officials from his office have been working with the Audit Office since yesterday over expenses run up by Heatley. A more formal investigation would be launched today.

Heatley resigned after being forced to repay more than $1200 in expenses run up on his ministerial credit card.

Key said it was discovered documentation used to support Heatley's expenses claim for food and beverage at a Christchurch restaurant was incorrect.

The expenses claim characterised the spending as "minister and spouse: dinner."

The actual credit card receipt was noted by him as Minister and Spouse for food and beverage.

In fact, the bill was for two bottles of wine.

He said he had asked Heatley to explain the inconsistency in his expense reconciliations, which Heatley said was an "unintentional error".

"However, he feels that he has not lived up to the high standards required of a Minister and has resigned his portfolios.

"I expect high standards from my Ministers, but I'm also prepared to accept that everyone is human and from time to time, people make mistakes.

"I have no reason at this stage to believe that Mr Heatley has been dishonest. However, it is important that the Auditor-General investigates this issue to ensure that public money is spent appropriately."

At a press conference this afternoon, Key said he was leaving open the question of whether Mr Heatley would be reinstated if the Auditor-General's inquiry cleared him.

"I am not ruling that out."

He also revealed he had told Ministerial Services to work with the Auditor General to ensure the rules on ministerial credit cards and expenses were clear and being followed correctly.

Heatley had made mistakes, but there was no reason to believe he had been dishonest.

"However, it is important that the Auditor General investigates this issue to ensure that public money is spent appropriately."

In the meantime, Building and Construction Minister Maurice Williamson would pick up Heatley's housing portfolio, and Agriculture Minister David Carter would take on the fisheries job.

Key said he would have asked Mr Heatley to stand aside from his portfolios while the Auditor-General investigated, but he had not planned to ask him to resign altogether.

Other ministers who had made errors on their expenses or used their credit cards outside the rules were not in danger of losing their posts.

They include Leader of the House Gerry Brownlee, who used his credit card to take his Christchurch electorate staff to lunch to thank them for their work last year.

At a five-minute press conference this morning, an emotional Heatley read a prepared statement and answered only a handful of questions before staff led him from the room.

Asked whether an additional discrepancy over two bottles of wine he had already declared was a resignation matter, Heatley said: "As you know I've felt the need to pay back costs associated with my family, who often travel with me because that's part of our strategy to involve the family as much as possible. I've had to pay back things that have been charged and I need to do that and I will do that.

"The difference here is that I've signed a document that is not accurate, and that’s a step too far. It's just a step too far. It tipped it over the edge for me."

Heatley refused to answer further questions over whether there were other discrepancies in his accounts, saying the Auditor-General would investigate the matter.

Heatley said he intended to remain in Parliament as an MP for Whangarei.

Richard Worth was the first Government Minister to resign after the election over inappropriate behaviour.

This morning details of all MPs' expenses for the last three months of last year were released.

Key arrived in Christchurch early this morning and attended the Pegasus Golf Open at the Pegasus Golf Club before abandoning the remainder of his plans without notice.

He was due to visit Dudley Park Pool in Rangiora, Oxford Area School, and open the Oxford Art Gallery in Oxford. He was not due to leave until early this evening.

- © Fairfax NZ News