Parliamentary inquiry clears MP Carl Bates of wrongdoing over 25 undeclared homes, suggests loophole be addressed

Whanganui MP Carl Bates has been cleared of wrongdoing by a Parliamentary inquiry. Photo / Supplied

A Parliamentary inquiry into Whanganui MP Carl Bates’ declaration of financial interests has exposed a loophole in Parliament’s rules - and recommended it be addressed in a future review.

While clearing Bates of all wrongdoing, the inquiry revealed an area of potential weakness in Parliament’s rules around MPs’ interests that are held in trusts.

In a statement to the Herald, Bates said: “As I’ve said throughout, I complied with the Registrar’s advice and am pleased the outcome reflects that.”

The inquiry into Bates’ financial interests was launched after the Herald revealed in September that he had moved his interests in 25 houses into a trustee company shortly before facing financial declaration rules.

Labour MP Glen Bennett then wrote to the Speaker of the House “to raise a matter of privilege in respect of Carl Bates”.

Under Parliamentary rules, MPs must declare their business, property and other legal interests, “thereby providing transparency and confidence in parliamentary processes and decision making”.

This is managed by the Registrar of Pecuniary Interests, Sir Maarten Wevers, who concluded a Parliamentary inquiry was warranted.

Today, Wevers released his findings, which found Bates’ declaration was “compliant” with Parliament’s standing orders.

He also recommended Parliament should address the question of MP interests that are held in trusts.

“I have found that the member’s return was compliant, questions have again been raised in relation to members’ interests in trusts, and in the nature of assets held in trust for a member.

“The matter of subsidiary interests of companies in which trusts have shareholdings has also come to the fore.

“In my view, these matters may warrant further attention by the House, in a future review of the Standing Orders.”

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