Labour keeps heat on English over perks

Published: 6:51AM Thursday October 29, 2009 Source: NZPA

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Labour isn't letting up on Finance Minister Bill English despite the Auditor-General's Office deciding it doesn't need to hold an inquiry into housing allowances he received earlier this year.

A report released on Wednesday said English had declared the correct information when he claimed his primary residence was in Dipton, Southland, although most of the time he and his family live in a house in Wellington.

Labour said English's primary residence was in the capital and he shouldn't have claimed any allowance for living in it.

Having lost that case, Labour is now focusing on another aspect of the report.

It involves whether or not English had a pecuniary interest in the Wellington house, which is owned by a family trust.

English declared no such interest and attached a copy of the advice he had received about it.

"In our view, the advice that Mr English relied on to make his declaration was not applicable to this situation and was based on too narrow a test for the Ministerial Services' situation," the report said.

"We consider that Mr English does have an indirect financial interest in the trust."

The report said this happened because different systems used to decide allowances did not fit well together, and it recommended they should be sorted out.

Labour, however, says English still has a case to answer and more questions are expected to be asked in parliament.

MP Pete Hodgson said on Wednesday night English's case was unique.

"Most New Zealanders would think that if you have a house in a family trust, you have a financial interest in it," he said.

English has paid back all the housing allowance money he received, about $33,000, and says he won't be making any claims in future.

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