2010 was a tough year for a lot of Kiwi families. As ordinary workers faced continued increases in the cost of day-to-day living through higher power prices, higher food costs, higher ACC levies and higher GST increasing the cost of just about everything, they found that their pay packets weren’t keeping up thanks to National’s “wage freeze” policies.
At least one group, however, has been been immune from National’s wage freeze, and that’s National ministers themselves. Late in 2009 John Key announced a new ministerial housing allowance. After Bill English was found out rorting the old scheme, Key decided it was easier to blame the ‘complex’ rules rather than discipline English. As a result, Ministers have pocketed an effective pay increase.
At the end of 2009 I showed how Ministers could rort the new scheme to give themselves a new tax-free pay increase. Now we know that, contrary to Key’s claim the new scheme would be cheaper, the cost of housing Ministers in Wellington increased by 8 percent, and it’s likely to rise further as more Ministers switch houses.
The number of Ministers claiming over $10,000 per quarter has increased from 5 to 11 since Key’s new scheme was introduced. The worst part is they don’t even need to prove that they’re spending the money on accommodation. They can rent out a cheaper place and pocket the difference. It’s another rort, and this time it’s got Key’s signature on it.
You are now banned for a month. You are deliberately offensive. Clare
You mean like Goff having a home there and renting it out to others while living in another place so he can get an allowance he would not if living in his own home?
Not to mention using a tax payer funded staffer in work time to show people the flat?
Still – I guess he could have avoided the whole situation by selling it like he promised – else he is just as guilty as the others you mention.
“The number of Ministers claiming over $10,000 per quarter has increased from 5 to 11 since Key’s new scheme was introduced. The worst part is they don’t even need to prove that they’re spending the money on accommodation. They can rent out a cheaper place and pocket the difference.”
Do you have a source for this?
Shame that the government are not concerned about housing the most needy.
I can see why people could get sucked into debating this stuff, but I agree with Stephen Fry when asked about the UK expenses scandal: this just isn’t the most important thing to be discussing.
Chris – please stop your incessant moaning.
First of all New Zealanders enjoyed increased take home pay because the GST increases were off set with tax cuts.
secondly – Bill English’s housing allowance was signed off by two previous Labour Speakers (Hunt and Wilson) – it was allowed within the rules.
Thirdly as Chris Points out above – does’t Goff own an apartment that he undertook to sell 18 months ago? He still owns it.
Actually the scheme as it is now is better as there is more transperancy. In wellington it is difficult to rent a quality house for less than $800 per week – which is about $40,000 per annum. A minister should have a decent house to live in and be able to entertain from that residence. A quality house in Thorndon, Kelburn, Mt Vic, Wadestown would easily be over $800 rent per week so it is doubtful to many are making a “profit” out of their allowance.
Tracey, of course he doesn’t have a source for Ministers pocketing the difference. He’s just throwing stuff and hoping it sticks.
If Goff were renting a home in wellington, because his “home” is in Auckland, he would get an allowance? I believe the rort was Mr English claiming to have his “home” in Dipton despite his wife working in wellington and his children going to school there.
Whatever the wrongs or rights of Mr Goff’s use of the system it is NOT the same as Mr. English, and he being our Minister of Finance, and good with understanding numbers and stuff like that,
Chris, I guess you didnt vote for National on their promise to “behave” and “have higher standards” than Labour, you’re happy for them to just not behave worse? Except when they are worse, like English and his double dipping, but that’s ok, cos it’s “not illegal”, but then our last PM did nothing “illegal” as between Glen and Peters, but wait you thought she should behave to a higher standard… now I’m confused as to what standard of behaviour does apply?
“Whatever the wrongs or rights of Mr Goff’s use of the system it is NOT the same as Mr. English”
Of course not, Mr English repaid a considerable sum, but Mr Goff won’t.
All this housing nonsense for Cabinet Ministers should have been sorted about a decade ago when Marion Hobb and Phillida Bunkle got snapped { some words deleted. Marian (note spelling) was cleared of wrong-doing, Grant} when they were ministers in the Labour government.
‘First of all New Zealanders enjoyed increased take home pay because the GST increases were off set with tax cuts. ‘
Except for the loot that is being borrowed to cover the shortfall.
‘secondly – Bill English’s housing allowance was signed off by two previous Labour Speakers (Hunt and Wilson) – it was allowed within the rules. ‘
Indeed. Is Goff somehow breaking a law?
You, like many other kiwis haven’t. You admitted on this very blog you have to shop cheaper because you have less money since the gst increase.
Fake and phoney, if not fraudulent post, Monty.
Monty Monty , its all moving to fast for you to keep up, as MP, Bill English claimed the $24000 pa housing allowance as approved by Labour speakers.
But its over 2 years since he became a Minister, and tried to pull a swift one , instead of moving into a rented house paid for by the government he tried to change the deeds of ownership on his own house so the government would pay him to live in his own home.
naturally he was caught out and paid the money back which was the honourable thing to do. But now he claims a larger amount as Key now says you can have a housing allowance of $37500 no questions asked.
For Ministers who want to entertain there’s Premier house, which was used as such in Helen Clarks time
I’m sure that any moment now we’ll have a commitment from the Labour Party that the members of its front bench will forgo these pay increases should it return to power.
I’m sure we won’t have to wait long. Any moment now.
What Chris said at the start of the thread.
You seem to have caught the Labour hypocrisy bug Grant.
@SHG So true.
Arghhh. In my opinion this will not be a election issue. When voters go into the election booth I am convinced that this kind of issue does not decide which box they tick. I am not convinced it is an issue because historically most, certainly the major parties, have had issues of this sort.
Basically voters have no control over the monetary affairs of politicians or civil servants regarding them being paid. It’s sort of tit for tat. And cynically speaking, if you are entitled to something, why not!
I would darely love to see Labour move away from this stuff and not give it time and focus on real issues.
Last night I watched a profile of Judge Carolyn Henwood and she raised some major issues. Simon Power in his ministerial capacity dropped the Te Hurihanga programme. Judge Henwood also raised issues of monitoring young offenders. Greg King quoted that as many as 40% of people in prison have been in state care. Huge opportunity to put pressure on the Ministers involved to explain why and what’s being done.
I’ll pull my head in!
Yep what pdm and chris said. All we need now is another Labour hypocrite making a semi-hysterical denial on radio that there is nothing wrong with what they do and pushing the Labour = good National = bad barrow.
What Goff does seems like anyone with a resource
He owns a house and rents it out!
How can any Tory troll not see that as good sense to earn a bob?
So his job comes with a package that provides accommodation!
That happens in many jobs some even provide cars to take you to the barber.
The Minister’s allowance should be no more than for an MP.
SPC – Not sure I agree – a list MP with minimal work load and spends all but 2 nights a week in wellington vs a Minister with massive work load, family committments and spends 5 plus nights in wellington. There is a difference.
Bob we are all quite happy for Goff to make money – but he gave a committment to sell his apartment in Wellington because it is not a good look and then he quietly thought it would go away and did nothing. Given Labour has taken English to task – we on the right can now point the finger straight back.
Al1ens – I am pleased you hang off my every word. I do watch where I shop and make every effort to keep all my costs down including my grocery bill. But please – I am also enjoying the tax cuts and putting that additional money into paying down the debt on one of my rental properties so I can be even wealthier.
Except that’s not what you’ve said previously, is it?
You wrote a comment outlining how your spending habbits have changed due to the tax changes and gst increase.
You can’t have it both ways.
I think it’s a little odd that someone suffering the full effects of the tory tax con can suddenly start advocating for the changes that make them drink coffee at their employers because it’s a luxury item.
Maybe it’s even a little deceitful of you.
There is only two things to love about Monty- his face!
He loves having to pay more money into his rentals as his government has taken away the depreciation allowance, but it makes him love the government even more.
Even as the houses fall in value due to the 5% decline in per capita GDP under ‘his’ government.. The banks are working slowly through the property investors and getting them to increase the amount of capital they have. ‘Underwater’ yet Monty?
And I think Phil Goff as PM would revert to the previous system as PM, as the current one only was introduced to benefit Bill English. But as others have mentioned its not likely to require a big policy announcement
Didn’t helen have an apartment in wellington she rented out when she was PM? Oh no don’t mention that because chris hipkins is on the case just like sherlock holmes. Really chris you just don’t get it. If you can’t start dealing with big picture stuff rather than really petty pot shots then you will be a pensioner by the time Labour’s in government again.
Start delivering some policy labour, it’s election year already and you guys are forcing us backwards.
well, you’ve certainly hit a nerve with this one chris(hipkins). you seem to have nearly the whole gang of nat apologists screaming and frothing on here… sounds more like a collective guilty conscience operating in overdrive than any real argument.. as usual, the facts speak for themselves. english is a rip off artist, and key has done what he could to help him get away with it.
of course, none of their grubby rip offs would have succeeded if we had the sort of terrier like reporting on this issue we’ve come to expect from our so called news media when it comes to apparent wrongdoing by anyone who might oppose, and expose national party corruption.
LabRat
My understanding is that Mr English was claiming TWICE. Is Mr. Goff double dipping in the same way?
Let’s not give Mr. English too much credit for paying back, afterall he had to be publicly shamed and some of you still havent forgiven labour despite paying back the misused card money… I was appalled at Labour spending our money that way, and am appalled that English did. You, on the other hand excuse it somewhat if you voted for the crowd doing it.
Monty, both the Minister and the MP require the availability of full-time housing in Wellington – this is unrelated to how many days they spend in the capital.
As to the issue of families living with Ministers in Wellington – and this necessitating extra housing cost.
There are two negating arguments -
1. The Minister’s have the extra pay to afford this cost.
2. If the primary residence of the Minister (especially a list MP Minister) is in Wellington should there be a housing allowance at all. Most people do not get such an allowance to live where they work.
I would conclude that the simplest system is to award all MP’s a standard housing allowance.
However if we wanted to set conditions, then Ministers should not get an allowance, only (outside of Wellington) electorate MP’s. Ministers with electorates getting an allowance for cost of travelling and weekend accomodationt in their electorates instead.
Ah so Monty, you evil property investor, YOU are one of the reasons the young today cannot get ahead