Morning:
13°c
Languishing in a Florida jail is a member of parliament (the House of Lords) named Conrad Black. He is doing time for rifling his company till of a few million. Given the events of the past six months, Black seems like a small-time operator. But it never occurred to me that elected members of the lower house were up to much the same tricks. Black's defence was always that he was within the rules of his private corporate governance. That's what MPs are saying.
Political London emerges this week as like something out of Little Dorrit. Snodgrass MP is renting a nice little earner that Smithers MP bought in Lambeth on the state. Snout MP has a mortgage deal in Southwark with Trough MP, whose wife runs a political advice and bathplugs agency. Credit MP and Crunch MP are big in the Ilford second homes market and run a John Lewis expenses consultancy. The taxpayer always coughs up.
When in 1973 the then prime minister, Ted Heath, described the expenses culture at Lonrho as the "unpleasant and unacceptable face of capitalism" everyone gasped. Thanks to freedom of information, we now have the unacceptable face of politics. Parliament is reminiscent of Jacques Chirac's Paris and Silvio Berlusconi's Rome.
Most journalists know a thing or two about expenses (or once did). But even the most hardened invoice fiddlers have been amazed at what MPs are getting away with, and from taxpayers whose interest they pretend to guard. Second homes, dinner services, washing machines, garden tools, bathplugs, even "food" have been up for grabs. MPs employ their spouses "on expenses" and then get them to write the claims, laundering them through a Commons fee office that would do credit to City Hall in Al Capone's Chicago.
Alan and Ann Keen, both of them west London MPs, contrived to run up £1.7 million in expenses, including £213,000 for both of them for the same second home south of the river, with another home in Brentford. The latter is apparently too far out to commute. Yet it turns out that three other MPs, including Home Office minister Phil Woolas, commute into Westminster from the Brentford area.
The Home Secretary, Jacqui Smith, pays her husband on expenses to fill out his own expenses form with such items as videos and garden equipment, while all the time claiming that her real home was her "second" home, and thus drawing subsidy, and a room in London was her first. How does she interpret the MP's Green Book guide to allowances, which states emphatically that MPs are themselves "responsible for ensuring that their use of allowances is above reproach"?
Meanwhile, MPs with grace-and- favour residences, including holders of such offices as Chancellor, Foreign Secretary and Defence Secretary, have been sub-letting their second homes and also claiming second home allowances. Geoff Hoon has walked off with £50,000, Margaret Beckett with £106,000.
Even the Chancellor, Alistair Darling, has his nose in this trough, with almost £10,000 claimed for a London flat that he subsequently let.
The Green Book could not be clearer. MPs are "strongly advised to avoid subletting any part of a property for which you claim the additional costs allowance".
How can Darling stand at the dispatch box and castigate bonuses and tax dodges when he has been indulging in such shenanigans? Some of these MPs have even been reimbursed for stamp duty on second homes, which they may subsequently sell for a personal profit. Such acquisitions in part belong to the public. To sell a property thus subsidised is theft from the taxpayer.
Whenever the exploiter of some dodge is asked to justify it, he always claims it is "perfectly legal". This is what non-doms and tax haven merchants claim every week. They are all acting on accountants' instructions. They never break any rule.
Let us not say defrauding but these MPs are blatantly diddling the taxpayer. Indeed they must be sailing close to the wind. The prosecution in the Black case pointed out that he could not escape the law merely by writing his own rules, nor could he expect leniency when so affronting what might be termed common decency.
These MPs appear not to have felt remotely queasy as they signed their dockets. They did not ask that old question, how would this look if splashed across the local newspaper? These MPs tried frantically to stop freedom of information from applying to them - for reasons we now understand - but they failed.
The line is now that this is all most unfortunate and must be cleaned up. But the cleaners must surely be cleaned up too. The very people who are now supposed to cleanse Parliament are the same as designed the system in the first place. How can anyone take the so-called parliamentary commissioner for standards, John Lyon, seriously for allowing this to go on? As for Sir Christopher Kelly, chairman of the Committee for Standards in Public Life, his response has been that he will muse over the matter during the summer holiday. His holiday should be permanent.
Journalists are fond of waxing hysterical at the moral turpitude of others. But MPs' expenses are beyond a joke. The Home Secretary's position must be beyond defensible. Yet her line appears to be like that of Harrow MP Tony McNulty. He agreed that his claim for £60,000 for his parents' home, which was his second one, was uncomfortable, so he decided not to make any more. This is like a burglar confessing: "It's a fair cop, milud, but now I've been nabbed let's say I promise not to do it again."
Nobody is resigning. Nobody is admitting impropriety or misuse of public funds. The implication is that the system was ethically fine until MPs were caught.
There is a simple test of the morality of all this. MPs have been claiming the equivalent of roughly twice their salaries in expenses. When they supposedly "reform" the system next year, possibly claiming only for real expenses, will they expect a massive pay rise in compensation? If so, they are guilty as charged.
Reader views (33)
MP expense retrospectivity unfair? What hypocrites!! I paid thousands to the CSA due to retrospective legislation. Shoe ... other ... foot.
Agree with the argument, though, as it also applied in my case. How could you know to do things differently when the rules hadn't been made yet? Any solicitor out there want to make their name on a test case on my behalf if MPs are let off the hook?
- Roy Robart, Putney, London
I think the time has come to stand up and be counted and call for a vote of no confidence in our current politicians, get them out of office now and instigate legal action against them all!
All of them regardless of party politics have defrauded the voter and tax payer out of public finances while mismanaging the economy, resulting in ordinary people, losing their jobs, their homes and their livelihoods!
People from all walks of life have been badly hit in some way shape or form, yet we see these greedy supposedly honourable individuals sticking two fingers up and flouting the spirit of the law to feather their nests.
I vote for a peoples party that will be elected to target these (hopefully ex politicians) and create legislation to make them pay back all inapproprite expenses for the last five years as the HM Revenue would normally do to the public.
Any misappropriation that breaks the laws of Fraud in this country would be actioned upon regardless of who made the parliamentary rules, and criminal records will be pursued, whether they were a Priminister or Junior minister.
There would be revolution in France if this sort of thing happened there and it certainly would not be tolerated in any other country. It's about time we became more partisan against our politicians and started questioning if our whole political system needs a radical overhaul so that ordinary citizens have more confidence in it! Parliament is supposed to be for the people and not the other way round
- Derek Vann, Leicester UK
Honourable Member is an oxymoron. Where is the Inland Revenue in all of this. If a member of the public used company funds to buy a second home, sold it on, pocketed the profits, not to mention the washing machine, televisions etc. the IR would be all over him. Where are they now. The MPs could care less about public opinion, as long as the gravy train rolls along. But hit them in the pocket and they will care.
- John, London, UK
On whose electoral roll does Jacqui Smith appear ?
- Michael Rogers, weybridge
Everything paid for by the state should be returned to the state when they cease to become an MP. Strict, transparent laws as to what may be claimed in furtherance to their duties. The rules on second and third homes to be rigorously reformed [possibly govt buy buildings to house those requiring accommodation]. NO special privileges in catering, smoking, etc, within the confines of Westminster. Everything that we are taxed on so must they. Return to the public purse all monies not properly claimed with interest. [eg. stamp duty]. All marginal examples of infringement to be ruled illegal and the transgressor to repay with interest. Pensions to be reformed, Ex gratia payments to be stopped. MP’s should be allowed work and interests outside parliament if we are not end up with a ‘council parliament’ – which, with labour, is more or less what we have now]. And those who transgress to be brought before a court – as we are. There are so many things we, the public, must demand: they are our servants and they are taking their perks at our expense. Where appropriate retrospective action should be taken – this govt has never been shy of using it when it suits them – but only in this particular circumstance: it should never normally be used. A sense of honour, service, diligence, accountability and straight forward competence to be once again encouraged. Start a petition or force a referendum or something to prevent those who are thieves and venal rogues from getting their way
- Brian Kelly, reading uk
It's rotten from the core; and covers all parties. I hope this keeps escalating to an intensity at which MPs' agree to abide by the tax laws we their "supposed" masters have to abide by.
- Keith, Bath
I wonder how many people are aware that when the council tax for second homes was increased (a 10% discount instead of a 50% discount allowable) MPs were exempt from the change. Laws passed for the people should include all the people or are the MPs not citizens? They are not alone in having a second home on account of their work.
- Rosemary, London
There is a former hotel, which was until recently an MOD building on Northumberland Avenue, which would be more than upto the job once renovated. Its close, it could be made secure, it could be a perfect solution.
But, until we show them at the ballot box just how angry we are about it, nothing is going to change. Find the info out for yourselves, fellow voters, as to what your MP is claiming for. If they cannot defend it, regardless of the rules, then DONT VOTE FOR THEM. We have to put an end to voter apathy and get these men and women that public service means exactly that - not a ticket on a gravy train. Enough is enough.
- Jabba, Pinner, UK
While not wishing to let off the Government, why are we not hearing about the Tories? This system did not magically appear under Labour but is the result of political collusion. When major parties act together this way (especially over the Freedom of Information exemption) we no longer live in a democracy, just in the illusion of one.
- Guy, Esher
Having booted the soldiers out of Chelsea Barracks, the Government sold the site to Property Speculators and pocketed the cash! Why could they not have retained the buildings and adapted Chelsea Barracks for use as accommodation and work stations available to MP's?
- Ben Bow, Luton
The first thing they should do is apologise to Elizabeth Filkin - the Parliamentary Standards Commissioner whom they forced out a few years ago because she was trying to do her job and put a stop to all this. On second thoughts - bring her back!
- Alfred T Mahan, New Forest
The Westminster Parliament should adopt the expenses system used in the Scottish Parliament where all MP's expenses are rigorously checked before approval and can be viewed online by the public.
H M Somerset
- Howard Somerset, Stockport, England
Time we stopped continuing to moan about it and get the police or HM Customs & Excise to DO SOMETHING as they would clearly do if it was you or me.
- Steve C, Redditch, UK
MPs constituency homes should also be provided. If they choose to live elsewhere, let it be at their own expense.
- Alice, London, UK
Re: Mps' expenses fiddles (many and various)
They all say that they were 'within the rules' and were duly 'signed off' by officials in the appropriate parliamentary offices.
I sent in a Freedom of Information request to find out who 'signed off' these 'bogus' claims and what checking was done! The answer received was that it is up to the MPs to ensure that their claims were valid. I believe this translates roughly as:
'After they hounded out the last Standards Commissioner who really tried to do her job, do you seriously believe any of us in the office is going to risk our jobs and pensions saying no to these claim!'
- John L Bell, Ellesmere Port
They have been distorting the rules and fraudulently claiming expenses, not as recompense for additional expenditure but to feather their own nests, for so long that they actually believe all the nonsense they are spouting about being entitled to it and "not breaking the rules". They are thoroughly dishonest, its as simple as that. They have lost any ethics or moral values - if they ever had any.
- Neil45, Gloucestershire, England.
Remember the oil refinery strike in North Lincolnshire ?
Remember how the foreign workers were housed in floating hotels moored in Grimsby Docks ?
Simply hire a couple of these to moor up next to the House of Commons - a double gain.
Because these were prison accommodation before becoming hotels, they'll also provide the secure accommodation needed if anyone has the guts to take the MP's to court for defrauding the Taxpayer !
- Cap, London
What about the work that they do on the side. Do they claim traveling and expensive meals on those too. Its a total disgrace that this racket has been going on for so long.
- Thomas Hayes, Leeds UK
A good way to solve the housing expenses claims would be to have a large Government building converted in to flats and house all the expense claiming MPs in it. I have in mind, Buckingham Palace or another like it. The two who occupy it would be well housed in Windsor Castle so why not move them there. Nurses have nurses homes in may cases so, why not MPs.Its time this racket was stopped.
T H Leeds
- Thomas Hayes, Leeds UK
This is clearly a fishy state of affairs, a kind of vendetta from Tories as revenge among other things for the arrest for their Immigration MP, and a stupid attempt to undermine the Government whilst in the middle of a financial crisis.
It is ugly, smelly, and repugnant...
- Nabil H, London, UK
I think they are all feathering their nests because they know that come the next election, they will be unemployable. No crooks can ever contemplate life in the private sector. The public sector with their own snouts in our coffers may be able to accommodate these low life MP's who are nothing short of fraudsters and should be treated as such through our legal system. Why do we stand for it? What would the French do....?
- Maya, London
Well said Simon Jenkins. I couldn't agree more. The rules are there becuase they represent the boundaries that you shouldn't cross yet before you get there should be a moral compass that says is that publically acceptable. If MP's worked in a private company, and, they fiddled expenses (which is stealing) that individual would be fired and would end up with a criminal record.
- Rupert, London
Those most conspicously robbing the taxpayers in this way will after the next election never work again. Companies will not wish to be associated with them for fear of any adverse PR. These people really are an absolute disgrace!!!!!
- Raymond, Poole
The Home Secretary should take the lead on this by "renewing" her commitment to maintaing standards in public life by resigning and repaying. Others should then follow her example.
- Tim Davidson, Newport, Wales
When they do ask a committee to investigate it will probalbly be headed up by Fred Goodwin or similar!!
- Joe, Brighton, UK
What does the Prime Minister do> Promises to investigate it soon, by the end of the year. How much more money will be swindled from taxpayer in the interim? Bunch of hypocrites. Only interested in looking after themselves and not the nation.
- Joe, Brighton, UK
These are the people who will shortly be voting for the new rate of higher tax on what higher salaried people earn. This disgusting bunch don’t even pay the old high rate of tax on this and more that they do nothing to earn.
- Dr C R Westwood, crawley uk
By the action of our cabinet members this government is a laughing stock around the world. Have just returned from Australia where every comedian on stage, screen, radio and in the bars has audiences in stitches with "tacky Jacqui Smith" jokes. She ought to hang her head in shame.
- R.F., Yorks, UK
Is it possible for taxpayers collectively to file a class action suite against John Lyon and Christopher Kelly for failure of duty or due care resulting in massive loss to public finance?
- Nellie Jones, chester uk
Its simple - the MPs first home is in their constituency - after all this is the area they claim to represent. Those whose constituencies are demended far enough away from Westminster stay in government owned or long term lesased apartments whilst on business at Westminster. They can claim reasonable travel and living expenses such as meals whilst away from home up to a reasonable daily limit. They should look at the kind of guidlines applied to employees whose companies expect them to work away from home a lot. Over the decades expenses for corporate employees have been completely pared down by the tax man and it is amazing that the opposite approach has been adopted with MPs expenses.
- Anna, London
Excellent article - MPs are defrauding the tax payer in exactly the same manner as Conrad Black. The only difference is that Conrad was brought to book - can you imagine MPs being brought to book? If so, the best venues in town would be Her Majesty's Prisons which will suddenly need to be upgraded to become the most comfortable places to rest your head to prevent any claims being brought by MPs for any abuse of their human rights
- Vij, London
Elizabeth Filkin was hounded from office for trying to deal with this very subject. Since her departure the behaviour of MP's has grown worse. They may very well know that they are breaking the spirit of the law, what they still appear to realise is the degree of anger that they have created amongst the general public.
- Manny Goldstein, London, UK
'Theft by finding', I calls it!
And you can't tell me that these McLabour Ministerial scams have not been the talk of the Westminster tearooms for the past 12 years.
'Schemes' like this don't just happen 'in isolation', as so starkly has become evident over this past fortnight.
And you can be sure that, with Gurner Gordon conveniently 'facilitating' a long delayed 'review', these Labour Lice will continue this deliberately blatant profiteering with their insolent 'business as usual', until they're swept out of government next summer.
And what about Blunkett and Prescott and Straw and ...
et al?
And Blair? !!!
'Whiter than white?'
- Dave, Cumbria
