Govt housing costs drop

Prime Minister John Key. Photo / Ross Setford

The cost of housing Government ministers in Wellington has dropped by about $20,000 a quarter since the rules were changed in 2009.

The latest release of ministers' expenses show the total cost of accommodation in Wellington from January to March was $140,787 - a 15 per cent drop from the same quarter in 2010 when the costs were $161,688.

Prime Minister John Key changed the rules for ministerial housing to a bulk-funded system under which ministers who lived outside Wellington qualify for an allowance of $37,500 a year and had to find and maintain their own houses, either by renting or buying.

Previously Ministerial Services provided furnished homes for ministers, either by renting or providing a Crown-owned home. It had also paid rent, maintenance and some costs such as the phone, Sky and the internet.

The average cost of housing ministers under that system was $48,295 a year.

Now 17 of the 28 ministers are getting the allowance while a further three were staying in hotels while in Wellington. Those MPs are reimbursed for up to $200 a night up to an annual maximum of $37,500.

Under the rules, if two ministers were flatmates, they would receive $37,500 between them. Any who stayed in the house they used as MPs before becoming ministers get a $30,000 payment - higher than the $24,000 cap on non-minister's accommodation claims.

Only three of the 28 ministers are based in Wellington, so do not get an accommodation allowance.

The number in Crown-owned homes had dropped from six in 2010 to four, including Mr Key in Premier House. One of the homes has now been sold and a second is on the market.