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Home / Kapiti News

Six people stage protest against Ōtaki MP Tim Costley’s housing allowance claim

Grace Odlum
By Grace Odlum
Multimedia journalist - Lower North Island·Kapiti News·
12 Jun, 2024 10:20 PM4 mins to read

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A small group in Kāpiti Rd, Paraparaumu, protesting about Ōtaki MP Tim Costley claiming a housing allowance for his apartment in Wellington. Photo / David Haxton

A small group in Kāpiti Rd, Paraparaumu, protesting about Ōtaki MP Tim Costley claiming a housing allowance for his apartment in Wellington. Photo / David Haxton

A small group of concerned locals gathered near Ōtaki MP Tim Costley’s Paraparaumu office to protest his accommodation allowance claims.

The six protesters, holding various signs, gathered on the corner of Kāpiti Rd and Te Roto Dr, a high-volume traffic area, on Wednesday at midday.

It has been revealed Costley is claiming $36,400 (taxpayer-funded) a year in housing allowance for an apartment he owns in Wellington despite living about 58km from Parliament in a family house in Waikanae.

MPs are entitled to claim $36,400 a year if their main residence is “outside the Wellington commuting area”, but the rules do not specify a minimum distance.

They do define the Wellington commuting area as the cities of Wellington, Hutt, Upper Hutt, and Porirua.

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Inland Revenue defined reasonable commuting distance as “between 50km and 80km for each leg of the journey or between 100km and 160km, taking both legs into account”.

Costley is also under fire for spending around $15,000 on travel (air and road) in just three months according to expense returns, but told Newstalk ZB this was explained by travel he had booked in advance and expenses that were not processed last year.

One of the protesters Marian, who did not want her last name published, said Costley was one of the highest spending MPs over the past three months in both transport and accommodation – despite being a “backbench MP” with no portfolios of his own.

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She said she believed Costley’s spending was hypocritical as he was part of a government calling for “cuts all over the place” and encouraging reducing public spending but not doing it himself.

“Yes, he’s entitled [to claim], but no he shouldn’t.”

Protesters unhappy with Ōtaki MP Tim Costley claiming a housing allowance. Photo / David Haxton
Protesters unhappy with Ōtaki MP Tim Costley claiming a housing allowance. Photo / David Haxton

Marian argued that the 45-minute drive into Wellington from Waikanae was within commuting distance – and Costley should not be allowed to claim the money.

She said thousands of people who lived in Waikanae commuted to Wellington for work, at all hours of the day.

Prime Minister Christopher Luxon told RNZ earlier this week that Costley’s commute between Wellington and Waikanae was impractical, and that it was outside the Wellington commuter area.

“MPs when they’re in Wellington, [they] don’t finish Parliament till 10[pm].

“We have some meetings out of there until midnight and then expect to be back at work in order to get going into select committees and other work that they have to do, between 7am and 8am.”

He said the allowance was not inappropriate given Costley had a young family who he needed to get back to, but he needed to also be able to get on with his work.

“We’ve got a guy with a young family who is expected to work when he’s in Parliament in that week, up to 10pm.

“He’s actually then got to do meetings and debriefing afterwards, that often means he’s not out of there until midnight. He’s got to be back at work at 7am and there are times when that can be a bit brutal going one way or another way.

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“He’s juggling quite a lot.”

In March Luxon said he would no longer claim a $52,000 accommodation allowance for living in the Wellington apartment he owned – and would re-pay $13,000. His decision came mere hours after he told reporters he was entitled to claim the money.

Costley did not respond to questions from the Kāpiti News about whether he would continue to claim the allowance or how he felt about the publicity.

“Like many MPs, I own an apartment in Wellington as is entirely within the rules agreed with the Speaker,” he said.

“I believe the safest and most sustainable way for me to function as an MP is to stay in Wellington when the House is sitting.

“As a junior MP, I am required to stay on precinct until at least 10pm and often there later and after midnight in urgency. I am required to be back at Parliament for early meetings starting between 7.30am and 8:30am.

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“My focus remains on our local community and serving them as best I can.”

This story has been updated to clarify the definition of the Wellington commuting area.

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