Freeloaders

The release of MPs expenses has engendered much publicity and I will be covering this in more detail soon, but one example caught my eye. This example is that of Health minister Ann Keen, 59, and her husband Alan, 70; MPs for Brentford & Isleworth and neighbouring Feltham & Heston respectively. They are husband and wife so they already get double expenses as they share a property. Not content with that, they decide that Brentford is too far to commute to Westminster from; it's an hour by car, less by train to do that journey. So they have used £175,000 of taxpayers’ money to help buy a flat near Parliament .

The Daily Mail report that:

"The couple bought the flat in May 2002 after spending six months in a London hotel.

In a letter to the Commons’ Fees Office informing officials of their changed circumstances, the Keens wrote: ‘Despite some advantages of hotel accommodation, overall we found it unsatisfactory and have borrowed…to purchase a flat within walking distance of Westminster.’

In an unusual arrangement, they used two mortgages. One loan was for £350,000 from HSBC. The other £170,000 was raised by re-mortgaging their property in Brentford, also through HSBC.

The couple argued that because the second home loan was used to raise equity for the central London flat it should be permissible on expenses.

This was apparently nodded through by officials. The property would almost certainly now be worth at £800,000, according to experts.

As well as the interest payments on their mortgage, the couple claimed £867.57 a month for ‘compulsory’ life insurance premiums attached to the home loans - a practice which has since been banned.

According to the documents, they never submitted a single receipt. Instead, they
sent two sheets of A4 to the expenses department every month, claiming £1,643.50 each month throughout 2002-03 and £1,699 each throughout 2003-04 - almost the maximum payable.

In the five years since they bought the apartment, Mrs Keen has claimed £87,325 under the second homes allowance and Mr Keen has received £87,803 - a total of £175,128.

In the last year for which figures are available, the pair claimed a total of £38,515 under the ACA, which covers mortgage interest, service charges, utility and food.

If they had each separately taken the £38 taxi ride from Westminster to Brentford on every Commons ‘sitting day’ that year, the bill would have only come to £11,000 - £27,000 less.

There is no suggestion the couple broke the rules. However, their case will intensify pressure for reforms of the way MPs pay themselves expenses.

Critics claim they lived so near to the Commons they should only be able to claim the London supplement of £2,700.

The housing allowances system is now under review.

A Department of Health spokesman stressed the Keens’ claims were within the rules.

But Matthew Elliott, of the Taxpayers’ Alliance campaign group, said they were ‘unacceptable’.

‘The allowance should help MPs represent their constituencies, not pay the costs of life insurance or enable them to build up a lucrative property portfolio.’"

Will the Labour freeloaders be handing over the capital appreciation in their part-taxpayer paid for properties? Somehow I doubt it.



UPDATE:
Unsurprisingly, Devils Kitchen has a more robust outlook on the Keen's. He also has the presence of mind and love of history to have quoted part of Oliver Cromwell's speech dismissing the Rump Parliament:

"It is high time for me to put an end to your sitting in this place, which you have dishonored by your contempt of all virtue, and defiled by your practice of every vice; ye are a factious crew, and enemies to all good government; ye are a pack of mercenary wretches, and would like Esau sell your country for a mess of pottage, and like Judas betray your God for a few pieces of money.

"Is there a single virtue now remaining amongst you? Is there one vice you do not possess? Ye have no more religion than my horse; gold is your God; which of you have not barter'd your conscience for bribes? Is there a man amongst you that has the least care for the good of the Commonwealth?

"Ye sordid prostitutes have you not defil'd this sacred place, and turn'd the Lord's temple into a den of thieves, by your immoral principles and wicked practices? Ye are grown intolerably odious to the whole nation; you were deputed here by the people to get grievances redress'd, are yourselves gone!

"So! Take away that shining bauble there, and lock up the doors. In the name of God, go!"