Ministers welcome housing allowance review

File photo / Mark Mitchell

Ministers say they are welcoming a review into their housing allowances as more questions are raised about their expense arrangements and whether they are claiming more than their Labour predecessors.

Labour's whip Darren Hughes said today that it appeared the rules for ministers had been relaxed and made more generous under National.

Spending by MPs has been analysed and criticised since Parliamentary Service and Ministerial Services released details last week following calls for more transparency.

Some ministers were singled out after it emerged some claimed between $700 and $1000 a week to live in Wellington.

Prime Minister John Key yesterday defended his ministers and said they deserved their taxpayer-funded Wellington homes, considering the demands of their jobs and stresses on families.

But he said he wasn't happy with the rules that covered their claims and has called for a review of what he considered to be "arcane" regulations.

Mr Key said he had placed a cap on ministerial rental claims at $700 a week, but Mr Hughes said Labour ministers had only been entitled to up to the MPs' limit of $24,000 a year or around $460 a week.

Deputy Prime Minister Bill English said there was a clear set of rules for MPs, but not for ministers.

"I think it will be helpful for ministers and the public for those rules to be explicit."

Labour leader Phil Goff said ministers in the previous government had the choice of a ministerial home or up to a maximum of $450 a week.

Though when questioned about this more closely, he suggested journalists check with Ministerial Services to see if this was the case.

Mr English has been criticised for claiming almost $1000 a week to live in his family home and other ministers are under fire for moving out of their Wellington apartments, then renting them out to MPs with Parliamentary Service paying the rent.

Defence Minister Wayne Mapp said his previous apartment had been very small and was not suitable for him and his wife, now he was spending more time in Wellington as a minister.

He confirmed the apartment was owned by his superannuation trust and was rented to National MP Bakshi Singh, for $400 a week.

As an MP Mr Singh can claim up to $24,000 year in accommodation costs from Parliamentary Service.

Dr Mapp also collected around $700 a week for his new larger apartment and said he could see why his rental income should be used to offset his expense claims.

"I can see why people have concerns and the review will deal with that,' Dr Mapp said.

Housing Minister Phil Heatley also said he was renting out his old apartment and claiming a $1000 a week in accommodation expenses in a larger home to accommodate his wife and young children.

Mr Heatley would not say whether this was rented to an MP.

Mr English said it was a problem that had arisen because National had moved into Government after a decade in opposition.

As MPs they had been able to own their Wellington homes and get a taxpayer subsidy, they still owned the properties now they were ministers and the rules were unclear on many issues.

He did not agree with questions suggesting ministers were "creaming it" or rorting the system to maximise their allowance.

"We are in a situation where I get criticised for staying in the house where I was in with good family reasons for doing that, other ministers are getting criticised for moving out," Mr English said.

"The review has got to take into account the need for clarity... and the sensitivity to the public."

Mr English said he had not arranged the ownership of his home in a trust to ensure he qualified for a ministerial allowance.

Mr Goff said he knew of no Labour minister getting housing allowances the size that National ministers were getting.

"It appears there may have been a change of rules whether or not that's justified that's a question for Mr Key."

He also welcomed the review saying Labour would be happy to take part.

"Nobody denies that a minister that lives out of Wellington that has their home elsewhere needs to get assistance with accommodation here... he question is what is the appropriate quantum that should be given in that situation."

- NZPA