Wong quits over travel perk 'distraction'

National MP for Botany Pansy Wong denied allegations around use of the MP's travel perk. Photo / Mark Mitchell

Pansy Wong yesterday resigned from Parliament ahead of fresh allegations she and her husband may have misled a parliamentary inquiry into their use of travel perks.

While Auditor-General Lyn Provost yesterday said she would not begin a second investigation into the Wongs' alleged pursuit of private business activities while travelling on the perk, Labour MP Pete Hodgson said he will ask her to reconsider on the basis of new information.

Former Cabinet minister Mrs Wong has spent 14 years in Parliament and was New Zealand's first MP and minister of Asian descent.

Her Botany electorate will go to the polls in a March 5 byelection.

While rejecting Labour's growing list of allegations around her and her husband's use of the perk, Mrs Wong said the matter had been an unfair distraction to the Government and she wanted to concentrate on her family.

Mrs Wong said she was not leaned on to resign. Prime Minister John Key said he was "very disappointed" with her decision and would have been "more than comfortable" for her to stay.

Her resignation was not an admission of guilt, said Mr Key. "She's made it clear to me it was really the impact on her family," he said.

Mrs Wong, who had previously decided not to stand in next year's general election, was mindful she was likely to face further allegations.

"She doesn't believe there's any basis to those and I don't have any information that would indicate she needs to take this step."

Labour leader Phil Goff said the resignation was a cynical attempt to avoid further investigation.

"John Key and Pansy Wong are treating the public with complete contempt if they think people are going to swallow their claim today that she's leaving to avoid becoming a distraction," he said.

Mrs Wong's resignation takes effect on January 17 to avoid disrupting the Christmas break, but she will not be paid any salary after December 20.

Mr Key said National would contest the Botany seat very strongly. Party president Peter Goodfellow said National was already gearing up for the byelection and did not believe the allegations around the Wongs would affect support.

Mrs Wong won the newly created electorate in 2008 with a 10,872 majority over Labour's Koro Tawa.

Former Auckland City councillor and National Party Epsom electorate chairman Aaron Bhatnagar yesterday confirmed he would seek selection.

Auckland councillor Jami-Lee Ross, who represents the Howick ward in the Super City and has been touted as a possible candidate, said he would announce whether he would seek selection for National before the end of the year.

Within hours of Mrs Wong's resignation Auditor-General Ms Provost said after "closely watching" the affair and irrespective of Mrs Wong's resignation she had decided against investigating.

But Mr Hodgson said Ms Provost had taken her decision unaware of the information he presented yesterday.

That included news reports culled from Chinese websites which appear to contradict the McPhail report's finding that Mr Wong's Chinese business interests were limited to the Lianyungang Supreme Hovercraft Company.

One article reported on the signing of a "Cooperation Framework Agreement" ceremony between a Lianyungang local authority and NZ Pure and Natural, a company in which Mr Wong and former Prime Minister Jenny Shipley are shareholders.

Other articles reported on the Wongs' visits to the hovercraft company during the private trip, where pre-printed banners offered a "warm welcome [to] New Zealand Cabinet Minister to visit and inspect our company". Mrs Wong's comments encouraging the company's staff were also reported.

Mrs Wong last month resigned her ministerial portfolios, apologised, and repaid the taxpayer-funded portion of her and her husband's trip to Lianyungang after the McPhail report found a minor breach of travel perk rules by her witnessing the signing of a business document related to the hovercraft business.

Mr Hodgson said he would write to Ms Provost with the new information requesting her to reconsider and said it was clear the McPhail report was inadequate.

A spokesman for Ms Provost said the Auditor-General would reconsider "if she decides there are sufficient grounds to do so".

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True Blue in Botany

The Botany electorate was created in 2007, and includes parts of Clevedon, Manukau East and Papakura, and was strongly blue in the last election.

In 2008, Pansy Wong won 56 per cent of the total 30,919 votes, giving her a majority of 10,872 votes.

However that was below the proportion of total votes that went to the National Party (61 per cent).

Labour's Koro Tawa came second with 21 per cent with less than the one in four Botany voters giving their party vote to Labour.

The Act Party's Kenneth Wang won 15 per cent of the vote, well above the 5 per cent that gave their party vote to Act.

Total turnout was 76 per cent.

The median annual wage in Botany is $2600 higher than the national average of $27,000.

The electorate population grew by 34 per cent between 2001 and 2006, four times the national average.

It has the highest proportion of people born overseas (49 per cent). One-third in the electorate are of Asian ethnicity.