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Bill English - Source: ONE News -
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Deputy Prime Minister Bill English says getting almost $1000 a week for living in his own home is a bad look and it will be cut back to the level of an ordinary MP.
English says no matter how much he explained the circumstances, nothing would change the perception that he had arranged his affairs to get more than other MPs were entitled to and he would pay the money back .
He has been claiming almost $1000 a week in expenses, including $700 in rent.
MPs are entitled to $24,000 a year which equates to $461 a week, while English was on track to receive more than $45,000.
"I am the Minister of Finance, it is my job to lead by example. So I will be getting in touch with Ministerial Services to pay back the difference between the rate I am on and the other rate going back to the election."
In the first six months of this year, English received $23,763 for his Wellington housing allowance, which includes rent and other accommodation costs.
English's office said he would not be claiming any Wellington accommodation allowances above the $24,000 level.
English said the option of getting the lower allowance had not been put to him and it should have been.
"I understand this does not look good. It doesn't really matter what the technicalities are and from my point of view, particularly as the Minister of Finance, that is not a sustainable position."
English said he had made the decision this morning and had not discussed it with Prime Minister John Key, who is in Australia.
English has been in the spotlight after it emerged his family home in Wellington was designated an official ministerial residence by Internal Affairs.
The Crown is leasing the house back from the English family trust that owns it, with the result that English was claiming about $1000 a week to live in his own home.
It is owned by a family trust and the title is in the name of his wife, Mary.
English said the decisions about the trust had never been about increasing the taxpayer subsidy that he received, but had been done for other family reasons.
The lease back arrangement has enabled English to get more than the $24,000 he would otherwise have been limited to.
English said his decision did not set a precedent for other ministers as he was the only one in a house in which he had financial interest and was receiving the $700 rate.
The spotlight has been on politicians' expenses after Parliamentary Service released MPs' expenses for the first time and Ministerial Services released comparable figures.
The focus on English and other ministers getting bigger houses while renting out their previous homes to other MPs led Mr Key to order a review into ministerial accommodation.
The Internal Affairs Department will conduct the review and says it would complete it by the end of the month.
The Dominion Post reported that it had been told Key is likely to reduce the accommodation allowances.
Key favoured a series of new tests for ministers' costs, which could be paid as a bulk-funded amount, the paper reported.
Ministers who stayed in their Wellington homes would get the $24,000 limit available to ordinary MPs.
A second tier of about $30,000 would be available to ministers who moved into bigger houses, or took one leased by the taxpayer, but rented any existing Wellington accommodation they owned and so received an offsetting income.
A top rate of $35,000 a year would be available to ministers who took a house through Ministerial Services but had no offsetting income from another property they rented out.
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Post new commentcueboy said on 2010-10-30 @ 13:35 NZDT: Report abusive post
I am surprised this message board is not inundated with messages castigating The Speaker of the House Lockwood Smith, over his ruling on MPs expenditure. They have got to be accountable, its not thier money, it belongs to the Tax Payers of New Zealand. Secrecy is a path would should not go down.I hope all New Zealanders follow this one up, and not let it die the death, to let the sticky fingers loose on the purse strings of this Nation will become a finacial problem in months and years to come.
cueboy said on 2010-10-30 @ 10:54 NZDT: Report abusive post
Great to see the Pime minister agrees with Transparency over travel by MPS. Its a pity the speaker of the house dosent share his view.Then again to anyone who has time to watch Parliament during the day, gee what a fiasco.All the questions are loaded to enhance the initial question asked.Talk about lack of honesty.Talk about free money, some sit there all day looking to the gallery, mostly the older ones.Transparency is wanted.
kiwi666 said on 2010-10-30 @ 10:31 NZDT: Report abusive post
Come on NZ you sould know its one rule for them and another rule for us mp look after them selfs
Noddy samurai said on 2010-10-30 @ 07:26 NZDT: Report abusive post
Every mature adult has the responsibility to be held accountable for his/her actions it's part of growing up; Please MP Ministers grow up have responsibility and common sense ... Only a child has to hide some thing
ThousandDemons said on 2010-10-30 @ 04:09 NZDT: Report abusive post
HELLZ NO they shouldn't be able to keep how much they're spending away from the public eye if we have to foot the bill. ESPECIALLY if it's for their own personal joys, rather than for any work-related spending. EITHER way, we should know, because we're PAYING FOR IT!!! KICK THEM OUT!