North MPs expenses not probed but elsewhere ministers resign

May 22 2009 by William Green, The Journal

NO Labour MPs in the North East are currently being investigated by the party over their expenses claims, the Government’s chief whip last night revealed.

But in an exclusive interview, Nick Brown, who is also minister for the region, stressed it did not mean there were not "things to worry about" and apologised for the failure to overhaul MPs’ expenses earlier.

His comments came after several North East MPs were caught up in the row over expenses and following a meeting of Labour’s ruling National Executive Committee (NEC) this week.

"I am not investigating any MPs in the North East, but that doesn’t mean there aren’t things to worry about," said Mr Brown, who as Chief Whip has responsibility for maintaining party discipline.

Referring to the NEC meeting, he added: "We had a really constructive meeting between the Parliamentary committee of the Labour party and the officers of the national executive of the Labour party, which is on the same side to find a way through this.

"We understand the case for fundamental reform, support the initiative that the Prime Minister has taken. The system for the future has got to be externally driven, clearly independent."

Mr Brown added the new steps taken were a "good fit" with the process now being led by Sir Christopher Kelly into finding a new system of MPs’ expenses that is due to report within months.

And he urged Labour MPs to release their expense claims to their local newspapers, leaving "everything in" apart, for example, from the names of shop assistants that might have served them to stop them being bothered by journalists.

"I used to believe that clear rules and regular audit were a sufficient precaution for the public purse. I now realise that is not the case and that the real protection is in the transparency of the arrangements. I was wrong about this. I apologise," said Mr Brown, MP for Newcastle East and Wallsend.

Yesterday Prime Minister Gordon Brown was forced to come to the defence of two more Cabinet ministers, insisting there was "no problem" with financial arrangements which meant Geoff Hoon and James Purnell did not pay capital gains tax (CGT) on second homes.

His comments stood in stark contrast to his condemnation of Communities Secretary Hazel Blears’ failure to pay CGT on her second home as "totally unacceptable".

She has now repaid more than £13,000 and apologised.

But the PM said the cases of Mr Hoon and Mr Purnell were different, as the tax man considered the properties involved to be their main residences, even though they had been designated second homes in order to claim Commons expenses.

Downing Street insisted Transport Secretary Mr Hoon and Work and Pensions Secretary Mr Purnell had stuck to the "letter of the law and the spirit of the rules".

The Prime Minister also lashed out at the "appalling" practices that were being uncovered at Westminster and expressed "surprise" at some of the MPs who had been taking part in them.