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Home / New Zealand

Former MPs and their perks - salary, free travel and taxpayer-funded cars

Isaac Davison
By Isaac Davison
Senior Reporter, Health·NZ Herald·
28 Sep, 2017 04:00 PM3 mins to read

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Former Prime Minister John Key is entitled to $50,000 a year and free travel - if he wants it. Photo / Greg Bowker

Former Prime Minister John Key is entitled to $50,000 a year and free travel - if he wants it. Photo / Greg Bowker

Their time in Parliament might be up, but MPs can still look forward to a few perks.

All 34 MPs who resigned or lost their seat at the election still get paid a salary for three months - around $40,000 in total, or $3300 a week.

That includes disgraced National MP Todd Barclay, who quit at the election over a secret recording scandal in his Clutha-Southland electorate office.

Outgoing ministers like Peter Dunne get paid a slightly higher rate - about $4400 a week - until a government is formed, after which their income falls to the lower rate of $3300 until December.

All of the departing MPs will lose their taxpayer-funded travel and accommodation subsidies, except for return flights to Wellington to clear out their offices.

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Some of the ex-MPs' perks are lifelong.

As a former Prime Minister, Sir John Key will get $51,725 a year for the rest of his life, a taxpayer-funded car, and free travel if he is carrying out duties as a former leader. It is not known whether he is claiming this entitlement. His predecessors Helen Clark, Jim Bolger and Jenny Shipley have all benefited from it.

Four long-serving MPs - Annette King, Murray McCully, Maurice Williamson, and Dunne - will get free international travel for themselves and their spouses for the rest of their lives.

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The travel perk only applies to MPs who served three terms before 1999 and is capped at the cheapest Air New Zealand business class flight to London each year and 12 domestic return flights.

Former MPs and their partners spend about $700,000 a year through this entitlement - though the MPs received less pay when working at Parliament because of it.

Some new MPs, on the other hand, may miss out on getting paid at all.

Any list candidate who made it into Parliament in the preliminary election result can get their airfares to Wellington paid for.

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But if they lose their seat when the special votes are counted on October 7, they will not be paid for any work since the election.

What do former MPs get?

• 3 months' salary
• Free return travel to Wellington to clean up offices
• MP's pension ($2.50 for every $1 invested)
• Free international travel (pre-1999 MPs only)
• $50,000 annuity, taxpayer-funded car and free domestic and international travel (ex-Prime Ministers only)

Departing MPs

National

Sir John Key (entered Parliament in 2002)
Murray McCully (1987)
Hekia Parata (2008)
Sam Lotu-Iiga (2008)
Craig Foss (2005)
Chester Borrows (2005)
Jo Goodhew (2005)
Maurice Williamson (1987)
Lindsay Tisch (1999)
Paul Foster-Bell (2013)
Todd Barclay (2014)
Jono Naylor (2014)

Labour

Annette King (1984)
David Shearer (2009)
David Cunliffe (1999)
Clayton Cosgrove (1999)
Sue Moroney (2005)

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NZ First

Barbara Stewart (2002)
Mahesh Bindra (2014)
Pita Paraone (2002)
Ria Bond (2015)
Denis O'Rourke (2011)
Richard Prosser (2011)

Green Party

Metiria Turei (2002)
Catherine Delahunty (2008)
Steffan Browning (2011)
Kennedy Graham (2011)
David Clendon (2011)
Mojo Mathers (2011)
Denise Roche (2011)
Barry Coates (2016)

Maori Party

Te Ururoa Flavell (2005)
Marama Fox (2014)

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United Future

Peter Dunne (1984)

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