Dai Havard

Labour Party | Merthyr Tydfil & Rhymney

MP's Allowances (III)

Part III

June 2009

Payment Used to Offset Public Costs

I received around £2,500 for a change to my residency rights in 2006.

I used the money to offset costs associated with moving to a smaller flat.

My rent went down with the move into a smaller flat not up as implied in the press.

I effectively used the money as an alternative to public funds to affect the move.

I have always paid whatever income or capital gains tax was properly due in full.

I have set out separately (See Parts I & II) an explanation of how I used the parliamentary allowances I claimed for.

There have now been question in the press on how I used monies I received from my landlord in 2006 and the potential effects on future claims.

In the interests of public information I have set out here a description of the money I received from the new landlord at the time and how I used it.

Use of Payment for Changed Residency Rights

I received around £2,500 for a change to my residency rights in 2006. This payment was made by the new owners following the sale by the Council of the complex I was renting a flat in.

I used the money to offset the costs associated with moving to a smaller flat rather than making claims for those costs.

The hiring of a removal company and a self drive hire van; along with some administration fees and associated costs accounted were the sort of costs I did not therefore claim for.
Commercial rent: I was effectively already paying close to a commercial rent for the flat in 2006 as I had only been in the complex for a few years and that was reflected in the sum paid to change my residency status.

My rent went down with the move into a smaller but better appointed flat not up as has been suggested.

Advice and appropriate use: I discussed these issues with the House authorities at the time. The payment did not require to be registered under the members Declaration of Interests and they advised me that it was for me to decide how to use the money.

I felt that to use the money to off set these costs in the way I did was appropriate and proper; effectively facilitating my changed arrangements for staying and working in London, at the cost of the landlord not the public or for my long term personal gain.

We all need the Kelly inquiry to report as soon as it can so we can have a new system that deals with the support to MP’s properly. I have however tried to work within both the letter and the spirit of the system properly throughout. I did not seek the payment and given the rules at the time I felt that to use this money provided by the landlord to off set these costs in the way I did was the right and proper way to deal with these issues.