Act to prevent political parties buying power: panel

A report on parliamentary expenditure has called for a cut in the amount of cash MPs receive to maintain their presence in Maori and large electorates and gives a warning that political parties may boost the funding in order to buy their way into power.

The parliamentary appropriations review committee's report released last week identified a number of concerns with "individual member support" funding.

The money is used to pay rent on MPs' offices outside of Parliament - mostly in their electorates, with office equipment, general running costs, preparation of communications in the area, and advertising MPs' availability to their constituents.

The committee found the funding served an important function of providing the public with access to their MP and so the ability to participate in the democratic process.

The funding starts at $40,932 a year for list MPs, is $64,260 for general electorate MPs, and $105,192 for MPs in large general electorates and those in Maori electorates except for the relatively compact Tamaki Makaurau electorate around Auckland.

Among the committee's concerns were that the Maori/large electorate funding "seems out of line with that received by other MPs".

The committee noted a previous review of the funding before the 2008 election had recommended increasing Maori and large electorate funding by $23,328 and that the National and Maori Parties agreed to implement a related recommendation to increase staffing and entitlements for Maori and large electorates as part of their confidence and supply agreement after the election.

"However, Cabinet subsequently also approved additional funding of $40,932 for each Maori and large electorate", the committee said.

In its review, it said it was not clear the extra funding was justified for reasons of geography.

It recommended cutting Maori/large electorate funding to $87,588, a sum it deemed "more appropriate", but also proposed lifting funding for MPs in a number of other electorates to the same amount in recognition of their large size and lower socio-economic profile.

However the committee said it was "more fundamentally" concerned the present regime was "open to ongoing change with the formation of successive governments".

"As a result, there is a real risk that expenditure in this area will be ratcheted up with successive elections.

"At worst, the current funding regime allows for the prospect of a party buying its way into office."

The committee concluded there was a strong case for the amount of the individual members' support entitlement being determined by an independent regulator.