Govt to consider MP allowance proposals

The Rudd government is prepared to consider proposals that may improve the
transparency of parliamentary entitlements.
Prime Minister Kevin Rudd promised to consider ideas that "stack up" after the
Australian Greens called for greater regulation of how MPs and senators spend their
$32,000 annual electorate allowance.
Federal politicians have been heavily criticised for the sizeable allowances they
receive in addition to their annual base pay of $127,060.
Their electorate allowance recently rose to $32,000 and there's public irritation
that some claim a $215 a night travel payment when in Canberra, even though they're
staying in investment homes they own.
Greens leader Bob Brown said there was no accountability for how the tax-free money
was spent.
"That should be stopped," he told ABC radio.
"We need guidelines, we need a regulator, we need a regular audit, the expenditure
needs to be made public."
Mr Rudd says he's open to sensible ideas that will improve transparency.
"We will always look at practical proposals to have greater transparency in terms of
parliamentary entitlements," he told reporters.
"The current arrangements have been around since ... (John) Howard was prime
minister in the mid 90s but (if) there are further practical proposals in terms of
greater transparency ... we will always work our way through those, particularly if
they make sense and stack up."
Politicians have defended their spending, saying they were often using their own
funds to help service their electorate responsibilities.
Labor senator Kate Lundy said there was adequate scrutiny of the spending.
If the money is not used on the electorate the money is fully taxed, she said.
"So I don't think it's accurate to say that it's just pocketed and can be spent on
anything," she told ABC radio.
"The accountability is through the tax return, and the tax office."
Liberal frontbencher Christopher Pyne said he wouldn't mind if the process was audited.
"Most MPs that I know end up spending at least the electoral allowance and often
more," he told ABC TV.
His colleague, opposition finance spokeswoman Helen Coonan, says there was already
accountability for how the money was spent.
"There are considerable calls on how you spend that amount in the interests of your
elected representatives," she told Sky News.
"Whichever way you look at it, it is accounted for either as a taxable fund or a
spent fund.
"To be perfectly honest, I don't think many of us would stay elected if we didn't
spend pretty much the majority of it for the purpose for which it is intended."