Speaker's 'directions' limit travel perks for MPs

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Parliament's Speaker has moved to officially abolish politicians' international travel perks, and will vet any travel applications by MPs to ensure they do not abuse the new system.

His new set of "directions" - the rules governing MPs' spending and entitlements - has abolished use of the perk for private travel, from January 1. And it can no longer be used for spouses in any circumstances.

MPs can still claim a rebate if their trip is primarily for parliamentary purposes - a broad-ranging definition which includes "research" and international conferences.

But the vetting will ensure no one can set up a work-related meeting on holiday as justification for a rebate.

The Speaker is in charge of vetting those trips, for which MPs must pay part of the costs themselves.

He acknowledged there would probably be leisure time on such trips, and the directions allowed for an "incidental component of private use" but the aim was to ensure the primary purpose was for work.

Labour leader Phil Goff said he was satisfied with the arrangement.

Vetting by party whips and the Speaker ensured MPs could not rort it by setting up one meeting overseas to try to justify a fortnight-long holiday.

Members of Parliament can expect another boost to their pay cheque as a result - the Remuneration Authority said last month it would decide early this year on a salary increase to compensate for the loss of the perk.

It was previously valued at about $10,000 a year as part of an MP's total package.

Just before Christmas the independent authority awarded MPs a 1.4 per cent annual increase and a $2000 top-up of their base salaries to compensate for low use of the perk over the past year.

But it withheld any decision on compensating for the loss of the perk, saying it would wait until early this year to assess the effect and for Inland Revenue advice on how much personal benefit MPs would still get from the more restricted use of the travel rebates, which range from 25 to 90 per cent.

Prime Minister John Key has said only a minimal amount of compensation, if any, should be given in return for giving up the perk. But the Remuneration Authority will not want MPs' salary packages to fall too much.

The Speaker agreed to abolish the perk late last year after lobbying by the Prime Minister and other party leaders following the resignation of former MP Pansy Wong over her husband's use of the perk.

The Government also intends to pass a law this year handing over the setting of all MPs' entitlements to the Remuneration Authority rather than keeping them in the hands of the Speaker and Prime Minister.