Speaker defends MPs' $14,800 allowance

Lockwood Smith says the allowance can be used for any parliamentary expense - including wine if it is for a political party event. Photo / Hawkes Bay Today

Speaker Lockwood Smith today defended a $14,800 allowance that all MPs get, and can spend on almost anything, saying any other system would be too complicated.

Auditor-General Lyn Provost's report into Cabinet Minister Phil Heatley's spending yesterday highlighted several instances of wrongful spending totalling $1402 of taxpayer money. One example included a $70 claim for wine he bought for his table at a National Party conference.

Ms Provost said that purchase should not have been claimed but it could have legitimately come out of the MP allowance as opposed to the separate one for ministers.

The MPs allowance can be used for any expenses that arise out of parliamentary duties.

Journalists today asked Dr Smith how the wine purchase could be considered a legitimate expense.

Dr Smith said as it was for a political party event it could be: "Whether we like it or not political parties are part of this Parliament."

He said the $14,800 was built into salaries and no receipts or claims needed to be processed.

"That can be spent on anything and that's why it's built into members' salaries. One of the reasons why we have that is to avoid keeping a tracking of every little expense that you have that you wouldn't normally have if you weren't doing this job. All the raffle tickets you have to buy, all the koha you have to provide, all the things you do for people."

Dr Smith said while there were recommendations for how the money was used, the actual decision was up to an MP's own discretion.

He would not comment on why Mr Heatley would claim the money as a ministerial expense when it had effectively already been covered by the allowance he gets.

"Members of Parliament cannot claim, I am not responsible for ministers."

Dr Smith said the allowance meant MPs could not claim individual items such as food but they were able to claim travel and accommodation.

The $14,800 allowance was justified because MPs did such a different job than other people who filled in forms for all expenses.

"This believe me is very different and as Speaker let me assure you there is no way I would support going back to a system of claiming for every trivial (expense). The administrative waste would be huge, it would be absurd."

However, Dr Smith is changing some of the rules around expenses including around travel allowances for MPs' children.

Other areas included:

* looking at a 2007 decision to limit subsidised travel which meant the level of discount for those still in Parliament was halted as at 2005 but which was reversed before last year's election. As a result, travel perks were restored to 23 MPs, 12 of whom were not re-elected. Present and former MPs elected before 1999 receive a 60 per cent discount on travel after nine years of service; after 12 years they get 75 per cent; after 15 years they get 90 per cent.

* responding to auditor-general advice around primary place of residence and how that was defined.

* looking at making MPs' Wellington accommodation allowances more consistent with ministerial rules.

* considering how a financial interest or other interest in accommodation that an MP occupies in Wellington is recognised.

- NZPA