Lockwood Smith axes MPs' travel perk

The Speaker Lockwood Smith will decide tonight whether to abolish MPs' travel perks. Photo / Mark Mitchell

Speaker Lockwood Smith has axed the international travel perk MPs and their spouses have used since the 1970s, saying it was clear the tide had turned on the perks.

Dr Smith announced his decision tonight after meeting with the representatives for all political parties on the Parliamentary Service Commission.

The decision will not take formal effect until he changes the official rules for Parliament. However, he said he had made it clear to Parliamentarians what his decision was to ward off any last-chance uses of it.

Dr Smith said he intended to set up another scheme to allow politicians to go on parliamentary-related travel, which would have strict rules. However, taxpayer subsidies for international flights for private travel would no longer apply.

He will advise Inland Revenue and the Remuneration Authority of his decision - the Remuneration Authority makes decisions on MPs' base salaries and could increase that to compensate for the loss of the perk.

The allowance that has been scrapped was up to 90 per cent for long serving MPs who could use it for private travel.

Former cabinet minister Pansy Wong resigned her portfolios because she went on a trip to China with her husband, who conducted business during the trip.

That was against the rules and an inquiry is being held into Mrs Wong's previous travel claims.

Dr Smith said he had not addressed the question of former MPs, who are still entitled to the allowance.

- with NZPA