Watchdog: 'MPs expenses review should NOT be carried out by parliamentarians'

Sir Christopher Kelly criticised MPs for conducting a review of their own allowances because it meant the result was unlikely to be transparent.

The chairman of the Committee on Standards in Public Life also attacked the practice of employing spouses out of their expenses as 'pretty unusual'.

Commons Speaker Michael Martin is chairing a committee of MPs looking at their allowances following the revelation that MP Derek Conway had massively overpaid his son Freddie out of expenses.

Westminster's sleaze watchdog: Sir Christopher Kelly says a fundamental expenses review is needed if people are to keep faith in the Government

Mr Conway had the Tory whip withdrawn and was suspended from the Commons for ten days.

Unveiling his annual report, Sir Christopher said: 'My committee initially welcomed Parliament's decision to instigate a root and branch review of the allowance system, but we were less impressed by the decision that the review should be conducted by a committee solely of parliamentarians.

'However conscientiously they undertake their task, it is difficult to see how the results can be expected to command full public confidence.

'If the opportunity is missed to undertake a truly fundamental review of the systems for reimbursing MPs, the outcome may simply give rise to greater distrust of the political class.'

Later, he told Sky News: 'I think it would almost certainly not happen in any other area of life that a group of people who are interested in the outcome should review their own arrangements on the way they are remunerated.'

Sir Christopher said the review should be based around core principles, including that all expenses claims should accompanied with a receipt and be properly audited.

He also criticised the 'John Lewis list', against which MPs' claims for items in their second homes were checked against a maximum price.

He said maximum claims should be viewed as a maximum  -  and not as an MP's entitlement.

Sir Christopher said that if such principles were not borne in mind, his committee would consider launching its own inquiry.

Some 144 MPs have declared that they employ relatives out of their staffing allowances, including Children's Minister Beverley Hughes and Sir George Young, chairman of the Commons standards committee, who both employ their daughters.

Sir Christopher criticised the practice of employing wives and husbands, saying it was 'a pretty unusual arrangement where public money is concerned'.

He said there was little justification for employing parents and children, 'particularly where there is no evidence that those people are undertaking any work in response for the pay they receive'.

Tory chairman Caroline Spelman is also facing questions after it emerged that she paid her nanny from her expenses for secretarial help in the late 1990s. She insists she has done nothing wrong.

Sir Christopher's annual report warned that postal voting was potentially 'lethal' to the democratic process. Too few checks were made on those applying for postal voting, meaning it was wide open to fraud.

He said if the Government failed to do anything to tighten up voter registration, people may begin to refuse to accept the result of elections.

Sir Christopher also raised concerns over some of the appointments made by Ken Livingstone when he was London mayor.

The Westminster standards watchdog has threatened to launch an inquiry if the Speaker fails to carry out a root and branch reform of MPs' expenses.

Sir Christopher Kelly lambasted the Commons authorities for deciding to carry out a review of their own allowances - meaning the result was unlikely to be transparent.

And he criticised the practice of employing spouses out of their expenses as 'pretty unusual', adding that there was little justification in employing parents and children.