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Watchdog warning on MPs' expenses Watchdog warning on MPs' expenses
(about 17 hours later)
Proposed reforms to MPs' second homes expenses may not go far enough, says the independent committee which spent seven months investigating them. Standards watchdog Sir Christopher Kelly says he will be "disappointed" if his proposals to reform MPs' expenses are not carried out in full.
Sir Christopher Kelly's committee said some proposals were "less robust" than it had envisaged. He said MPs should not buy second homes or employ family but a new body is considering which reforms to implement.
The reforms were drawn up by a separate group given the job of implementing Sir Christopher's recommendations. Sir Christopher said it was "not fair" to say they were being watered down, as the consultation was still under way.
But Sir Christopher suggests the proposals may be "more generous" than current rules to some MPs. But he said his original plans were "well founded", following a seven month inquiry, and he felt they were "right".
Sir Christopher's committee on standards in public life held an independent inquiry into MPs' allowances and put forward a series of proposals to overhaul the system - following the expenses scandal last summer. Sir Christopher was speaking to BBC Radio 4's Today programme after the committee on standards in public life, which he chairs, published its response to the new expenses consultation.
'Reasonable commute''Reasonable commute'
These included banning MPs from buying second homes and claiming back mortgage interest payments, banning them from employing relatives and extending the number of constituencies whose MPs are not allowed to claim for a second home. It raised concerns that a suggested restriction on those MPs who could claim to rent a second home - to those with constituencies outside London's public transport zones - was actually "more generous" than current rules.
But the proposals were handed over to the Independent Parliamentary Standards Authority (Ipsa) to decide which to take forward and are subject to public consultation. Sir Christopher's committee had recommended stopping all MPs with seats within "a reasonable commuting distance" of Parliament from claiming - pointing out that many other people commute from outside London.
Many people commute every day from places outsize zone six while still enjoying travel to work times no greater than some who do Committee on Standards in Public Life href="/2/hi/uk_news/politics/8492622.stm">Brown plans vote system shake-up class="" href="/2/hi/uk_news/politics/8494121.stm">Doubts over MP reform proposals FROM THE TODAY PROGRAMME href="http://news.bbc.co.uk/today/hi/default.stm">More from Today programme
In its response, Sir Christopher's committee said as all three main party leaders had endorsed its recommendations "we continue to believe that they should be implemented in full". While basing it on travel zones had "the advantage of simplicity ... it appears to be less restrictive than Parliament has already agreed and less robust than the committee had envisaged", the committee said.
MPs with constituencies within 20 miles of Westminster cannot claim for a second home - Sir Christopher's committee had recommended extending that slightly to cover MPs within "reasonable commuting distance" of Parliament. The committee also stressed that if MPs who already owned second homes were to be allowed to keep them for a transitional period of up to five years - they must be made to give up any profits made on them during that time.
It said the reason was "that MPs should be treated in the same manner as other citizens". Sir Ian, who was selected to head the new body by a committee of long-serving MPs, has suggested that it should be for Parliament to decide whether that happens - as it may require a change in the law.
'Less robust' And Sir Christopher's committee said that employing family members at public expense was "unacceptable" - Sir Ian has said he agrees it should be banned but the consultation document invites other views.
But Ipsa has since suggested only those within London transport zones one to six should be stopped from claiming - so MPs in seats with good transport links to London, like Guildford, would be able to claim for a second home. We still think they are right Sir Christopher Kelly on his committee's proposals to overhaul MPs' expenses
The committee on standards in public life said it had "envisaged Ipsa undertaking an evidence-based review of commuting distance" and while basing it on travel zones had "the advantage of simplicity ... it appears to be less restrictive than Parliament has already agreed and less robust than the committee had envisaged". Sir Christopher told the BBC it should not come as a surprise that his committee wanted to see all its original recommendations - drawn up after "an exhaustive process" - come into force.
Sir Ian says he does believe MPs should not employ relatives "We still think they are right," he said.
"Many people commute every day from places outsize zone six while still enjoying travel to work times no greater than some who do," it said. But asked whether his proposals had been watered down, he said: "I don't think that's a fair account of what's happening. This new body under Sir Ian Kennedy is doing what they are supposed to be doing.
It also said that MPs should rent, not buy second homes at taxpayers' expense and said those that own them should sell them within a "transitional period" of up to five years - but give up any profit earned on them during that time. "They, not us, have the responsibility for administering this new scheme. Under the act which set them up they are obliged to consult before they do so."
Ipsa chairman Sir Ian Kennedy has said he is committed to the idea, but the consultation suggests it should be for Parliament to decide whether that happens. 'Never inconceivable'
Sir Christopher's committee says giving up any new profits was a "quid pro quo without which the transitional period of five years proposed becomes much more difficult to justify". He said he had spoken to Sir Ian on Monday who had pointed out he was carrying out a consultation and no decisions had been taken yet.
As an interim measure, Ipsa should refuse to pay out mortgage interest claims unless MPs agreed to hand over any capital gains made, it said. However, Sir Christopher added: "I would be disappointed if our recommendations are not implemented... in full, because... I have heard no arguments since we produced them which we did not consider when we were making our recommendations."
It also stresses that employing family members at public expenses is "unacceptable" - Sir Ian has said he agrees it should be banned but the consultation document invites other views. Asked if he would consider resigning, if they are watered down, Sir Christopher said it would depend what Sir Ian brought in but while it was "never inconceivable" he thought it "extremely unlikely".
Sir Christopher's committee also says it is "disappointed" there will not be a trial scheme at the beginning of the next Parliament in which a private agency is used to find MPs' second homes to rent. In its response to the expenses consultation, Sir Christopher's committee notes that Sir Ian's proposed changes to the £10,000 a year communications allowance - limiting claims to advertising for surgery times and producing contact cards - appeared to be tougher than it had envisaged.
But the committee said proposed changes to the £10,000 a year communications allowance - limiting claims to advertising for surgery times and producing contact cards - appeared to be tougher than it had envisaged. Sir Ian's body - the Independent Parliamentary Standards Authority - has also proposed scrapping the resettlement grant - worth up to £65,000 per MPs - entirely for those leaving Parliament - Sir Christopher's recommendation had been to reduce it.
Ipsa has also proposed scrapping the resettlement grant - worth up to £65,000 per MPs - entirely for those leaving Parliament - Sir Christopher's recommendation had been to reduce it.
Last month Sir Ian said he wanted to "be fair" and air different arguments using the consultation document, and on the issue of MPs surrendering profits on second homes said: "I don't recognise the notion that we were watering down on capital gains."Last month Sir Ian said he wanted to "be fair" and air different arguments using the consultation document, and on the issue of MPs surrendering profits on second homes said: "I don't recognise the notion that we were watering down on capital gains."