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MP's Expenses

Posted by Claire Ward, MP for Watford, at 14:47, Thu 21 May 2009:

Statement on expenses -Claire Ward MP

The revelation of claims made by MPs on allowances has rocked public confidence in our parliament and MPs. There is no doubt that the system for claims has failed to provide the necessary checks and robustness that the public expect. Although some changes have taken place more needs to be done and that is why I have supported the decision for Sir Christopher Kelly and the Committee on Standards in Public Life to investigate the whole issues of MPs remuneration and allowances and to report with proposals for reform as soon as possible.

Allegations have been made against me by the Daily Telegraph and I want to deal with these points:

Why do I have a second home when many people commute daily from the town?

When I was elected in 1997, I promised to live in Watford and I moved into a flat as my only and main home. However the House of Commons had no routine time for finishing in the evenings and on most nights the House would finish after 10.30pm frequently sitting until the early hours of the morning. Initially I commuted by train or car to my home in Watford. As trains are very infrequent in the early hours of the morning and driving whilst extremely tired is rightly frowned upon I began to use the allowances to stay in hotels. However, not knowing when the House would sit late or when the business would collapse early meant that sometimes I had a hotel booked when I could have come back to Watford. At other times without a hotel arranged I ended up sleeping in my office. This was not a satisfactory arrangement and certainly would not help anyone to perform at their best.

I therefore claimed the allowance for a s econd home in London, as I was entitled to do, to enable me to use my time in Westminster as effectively as possible. MPs have two places of work – Westminster and their constituency and they must divide their time between the two.

I was married in 2003 and like most couples we were keen to have a family. In 2004 I moved my second home from a small one bedroom flat to a two bedroom flat in Westminster. I paid the stamp duty and the capital gains tax. Although the hours of the House of Commons had changed and there were fewer all night sittings, it had been agreed that any changes were temporary until the new parliament. From the start of the new Parliament in 2005, the House of Commons has been sitting on Mondays and Tuesdays at least until 10.30pm, on Wednesdays at least until 7.30pm and on Thursdays until 6.30pm. By the time I was re-elected in 2005, I had a child on the way and I had planned to continue dividing my time between Westminster and Watford to maximise my working hours and family time. My first child was born in 2005, though sadly she was still born. Following that election I was also appointed as a Government Whip, a post I continue to hold today, which requires me to be in Parliament for longer hours than most MPs.

I take my duties as an MP very seriously and I have always sought to do the best possible job in representing the people of Watford but I make no apology for having a far greater duty to my children. I believe that it is essential in any democracy that our Parliament should have people from all walks of life and all stages of life. Combining a family and a job with late hours is difficult but I try to balance the two. On nights when the Commons sits until late, I try to return to my Westminster flat to see the children at lunchtime or bedtime before returning to work. If they were permanently in Watford that would not be possible. As they are young, they are also in a position to travel between my two places of work. So on a Friday they are in a nursery in the constituency (until recently both were but only my daughter is currently at the nursery). We are then in Watford as a family until we return to Westminster for the start of the parliamentary week on a Monday. It does mean that my children have a pretty hectic life but I have to decide whether it is better to do that than not see them at all during the week when I would be working in Westminster for long hours and undertaking constituency engagements for considerable amounts of the weekend in Watford.

Claims for petty cash were made and the House of Commons paid some of these and then stated that further claims were not permitted? Why was the money not paid back?

The old allowances system, no longer in operation, allowed for MPs to claim household expenses or items bought up to the value of £250 without any receipts. In the mo nths following the purchase of my second home in 2004 I claimed for items which I mistakenly described as ‘petty cash’.On a further claim in July 2004, I clarified that these items were ‘petty cash –household items’ for example kitchen equipment and curtain material. Two further claims by the Finance Department were not paid. I did not challenge these but I checked with the office that previous claims were in order if they were for household items. I was told they were.

It is alleged that I ‘flipped’ homes to claim allowances?

This is totally untrue. I did not ‘flip’ homes. I had a small one bedroom flat as my second home. After I was married I sold my one bedroom flat and bought a two bedroom flat in anticipation of my family. This flat is within 10 minutes walk of the House of Commons. I paid the stamp duty and the capital gains tax in this transaction.

I tried to use the allowances reasonably to help provide a second home. The allowance does not provide the full costs of the second home and I pay towards this because , these days, it is important to me to be able to have my family accessible.

Last month, I voted to exclude all MPs with constituencies within 20 miles of Westminster from claiming the second home allowance. This will have a significant impact upon me and my family. However I supported it because I recognise that the public want to see change to MPs allowances and even though the allowance has enabled me to balance the late hours and family life, I accept that restoring public confidence in MPs and our Parliament must be a greater consideration than any one individual. Following the latest revelations about MPs’ claims, public anger is understandable and there is even more reason for serious change in the way in which MPs are recompensed for living costs when they need to be in Westminster.

We have all seen some appalling examples of MPs abusing the system and that includes members from all parties –Conservatives, Liberal Democrats and Labour. No party can claim that they are not tainted by this abuse. The Prime Minister has made it clear that he demands the highest standards from Labour MPs and he has demonstrated that he will take tough action against those who fall short of these standards.

I hope that this has clarified matters and I ask for some understanding of the need to balance work and family life. As many thousands of my constituents who cases I have dealt with will know I have worked hard over the last 12 years to serve them and the people of Watford.

Claire Ward

May 20th 2009

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