Labour, Greens disclose travel expenses

Phil Goff says withholding travel figures creates a false impression. Photo / Steven McNicholl

Labour and the Greens have voluntarily revealed their full expenses for the last quarter, showing that between 8 and 9 per cent of their overall spending was on so-called travel perks.

The two parties gave the figures as the rebellion grew against Speaker Lockwood Smith's decision to stop reporting individual MPs' spending on international travel.

The National Party is set to follow suit after Cabinet ministers agreed unanimously to do so, but Prime Minister John Key said he wanted to talk to his full caucus first.

The Green and Labour releases showed 8 to 9 per cent of their overall spending was not included in the Speaker's release because it was considered to be for personal or international travel - totalling $62,000 for Labour and $11,500 for the Green Party.

Yesterday Labour leader Phil Goff said that although the cost of the entitlements was deducted from MPs' salaries, he did not agree with the Speaker's decision.

"I'm concerned that withholding these figures creates an impression the cost is much higher than it actually is."

He challenged other parties to follow suit.

The difference between the party's releases and the Speaker's made it clear who had used the international travel discounts - the travel costs of Labour MPs Clayton Cosgrove, Ross Robertson and George Hawkins were between $5000 and $10,000 higher.

Mr Cosgrove said the three used the rebates for a trip to China in July at the invitation of a provincial government. They has trade discussions and met other politicians and organisations.

Nanaia Mahuta had a $5000 difference which she said was because she had used the rebate to travel to Australia with the parliamentary rugby team. She said it was her only international trip for the term and was booked when she had believed her netball team was also playing on the trip.

Dr Smith had justified his decision by saying the spending on those perks was not public spending and the public had no right to know how MPs used their private remuneration.

He said MPs had effectively paid for them by forfeiting higher base salaries to retain them.

The Green Party has a caucus rule not to use the rebate for holidays, although its MPs can use it for trips related to their job.

It has called for an independent body to set the rules rather than leave it to the Speaker. Yesterday co-leader Metiria Turei said she was also concerned about plans to change MPs' accommodation allowances.

Based on the Australian system, the change is expected to allow ministers and senior MPs to set up long-term homes with their families in Wellington and still receive the allowances given to out-of-town MPs if they had a "home base" elsewhere.

Mr Key said he had not seen the details, but his understanding was that the plan was to "toughen up" therules rather than make it easier.

A spokesman for the Speaker said the details were yet to be worked out but the total amounts available in allowances would not change. The changes were a response to the Auditor-General's call for greater clarity about the rules for MPs' primary place of residence.

The Auditor-General had reviewed Finance Minister Bill English's use of the accommodation allowance.

Mr English's family had lived in their Wellington house for years while he continued to claim accommodation allowances because his primary residence was listed as his home in Dipton.

The Auditor-General found he had done nothing wrong but recommended a clearer rule.

Q AND A

What costs will no longer be included in MPs' expenses releases?

All use of their international travel rebates, 45 per cent of the costs of travel by their partners and 5 per cent of the cost of their own travel. Official international travel will be included.

Why is the Speaker now leaving these items out of the expense releases?

He claims they are a private expense because they have "come out of members' salaries" so they have paid them.

Do MPs have $9646 taken out of their salary for their international travel perk each year?

Technically no. However the Remuneration Authority considers the value of perks when setting the base salary, so it is lower than it would be if they had no perks. It also includes the proportion of other entitlements. For example, Inland Revenue has calculated that 5 per cent of an MP's free domestic travel and 45 per cent of a spouse's domestic travel is personal, rather than work-related. However the perk is not part of the MPs' salary which the MP either pays out or has taken out.

Where does the money to cover the rebates come from?

There is no separate pool of money. The rebates are paid by the Parliamentary Service which deals with MPs' travel. The Remuneration Authority estimates the value of the perk at $9646 a year for each MP on average but that figure is not a limit. There is no limit on how much they can use the perk. It ranges from a 25 per cent discount for second term MPs to 90 per cent for more than four terms.

Who makes the rules?

The Remuneration Authority sets the base salary rate for MPs. The Speaker decides on other entitlements such as travel, office resourcing, communications equipment and accommodation expenses. He acts on the advice of the Parliamentary Service Commission, which is made up of MPs from each party and which the Speaker chairs.




HOW MUCH IS MR SPEAKER HIDING

What the top five actually spent versus what the Speaker's release showed they spent:

Phil Goff: $34,633 v $33,228. Difference: $1405

Shane Jones*: $29,485 v $28,879. Difference: $606

Clayton Cosgrove**: $28,029 v $22,407. Difference: $5622

Ross Robertson**: $27,830 v $17,893. Difference: $9937

Damien O'Connor: $25,878 v $24,743. Difference: $1135

Labour Party overall***: $754,878 v $692,873. Difference: $62,005

Green Party overall***: $147,207 v $135,700. Difference: $11,507.

*includes $919 official parliamentary overseas travel.

** Both used the international travel rebate to visit China.

*** includes official parliamentary overseas travel totalling $13,310 by 3 MPs for Labour and $5015 for 2 MPs for Greens. This is separate from the travel rebates.

Why the difference?

The Speaker has subtracted all spending on international travel rebates (where used), 45 per cent of domestic travel costs for MPs' partners and 5 per cent of MPs' domestic travel costs.