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Ellis in Wellyland

Wednesday, April 19, 2006

John Key's Accomodation Allowance

Over on Lindsay Mitchell's blog a discussion about John Key recieving an accomodation allowance to cover part of the interest on a mortgage for a flat he owns in Wellington. Most of the discussion centres on the motivation to claim the allowance.

I must admit his defence of his claiming the allowance sounds a little arrogant.

The accomodation allowance available to MPs from outside the Wellington area is to pay for costs of maintaining an additional owned residence away from home; or the cost of renting an additional residence; or the cost of staying in other accomodation, like a hotel. It is not a subsidy for any capital cost of a property.

John Key is claiming the allowance to pay for the costs of maintaining a flat in Wellington. He is entitled to some of the interest on a loan to be refunded to him as he has incurred an expense he wouldn't normally have if he wasn't an MP.

To say that he is rorting the system is wrong - he could have chosen to have Parliamentary Services pay for him to rent a flat or pay for hotel rooms and we would be none the wiser.

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