Paul Goggins - Allowances - 19/05/2009 |
 On Monday 18 May I invited the Manchester Evening News to look at all my claims and receipts for the 4 years from 2004 to 2008. Given the partial report that appeared on 19 May I think it is important that I offer an explanation to my constituents.
I don’t regret opening the books because I think the first step to rebuilding trust between MPs and voters is straightforward honesty.
People are very angry. I understand that and do not seek to justify a rotten system that has brought politics into deep disrepute.
Every MP has to find a way of combining family life with work in London. Some stay in hotels, others rent or buy.
My family home is in Manchester. I have lived in the same house since 1988. I bought a house in London after my election in 1997. Both are modest terraced houses.
All my claims for furniture, fittings and decoration have simply paid for replacements for items that were broken or worn out. Almost half the total claimed over 4 years was for a replacement kitchen in my London home. It is a standard B&Q kitchen. I do not have an extravagant lifestyle but, like most of my constituents I do have reasonable standards. Of course, any expense in relation to my main home comes out of my own pocket.
One accusation in the MEN article that I object to strongly is the reference to “flipping”. As people have come to understand this term it implies that I switched the designation of my main home and second home in order to sell and make a profit.
From 1997 my London home was classed as my second home. When I became a minister in 2003 I was instructed to change the arrangement on the basis that ministers had to live in London. It was, of course, a complete nonsense that my family home was described as my second home and eventually the rule was redrawn and I was able to change back. I have never sought to sell either of my houses and my main home for allowances remains – and will remain – my main home for tax purposes.
Politics and Parliament are in a very bad place. We have to find a way of moving forward. MPs need to be able to live and work in London but everyone needs to have confidence in the system that makes it possible.
I will work in parliament for reform. I will work in my constituency, as I have for the last 12 years, to enhance the opportunities for local families and the wider community.
Update 26/05/2009
Further to my statement on 19th May, information was published in the Daily Telegraph on 23rd May which I need to clarify.
Since 1997 I have shared a house when I am in London with Chris Bain, a family friend for over 30 years. Between 1997-2003 we were joint owners; in 2003 I took over the whole mortgage – at that point Chris retained a 25% share in the value of the property. Between 2003-2006, as already confirmed above, London was classed as my main home, so the fact that Chris lived at the property had no impact on my claims for allowances.
Chris has his own home outside London and increasingly spends time there. He does, however, continue to stay at the house during the week when he is working in London. It is wrong to say he has lived there rent free as he has a 25% share in the property. Chris covers all his living costs, including food and other personal expenses. He has maintained the property and paid for decoration, minor repairs and various items of household equipment. We have agreed to reassess our respective share of the costs of running the house between 2006-2008 and to repay any shortfall incurred.
The article also mentioned that work was done at the property by Don Bain, Chris’s brother. After a long drawn out effort to find a contractor to do the work, Don agreed to install the B&Q kitchen referred to above, for payment that was equal to the lowest quote we had received. This was all undertaken and paid for properly, in accordance with Parliamentary rules.
Finally, my role as Charities Minister in 2005-2006 and the level of Government grant for CAFOD were completely unconnected. CAFOD is a charity dealing with international development, and so decisions regarding funding for CAFOD were taken by the Secretary of State for International Development and not by the Home Office where I was based.
Update 19/06/2009 - Statement Regarding Repayments To Fees Office
I have now reviewed my ACA claims for 2006-08 to take account of the fact that for part of that Chris Bain was also living at my London address.
Between January 1998 and April 2003, Chris and I were joint owners of the property. In April 2003 I took over the whole of the mortgage and Chris retained a 25% share in the value of the property.
Following my appointment as a minister in May 2003, in line with the rules at that time, my London home was designated my main home. This remained the case until April 2006 and no claims were made in relation to my London home during that three year period.
Given that he is the part owner, Chris has every right to live at the property, and usually stays there 3 nights a week. He contributes to costs not claimed for but we have decided that he should have made a greater contribution to housing and other costs against which I claimed during 2006-08.
I have repaid £11,680 – representing half the costs of mortgage interest, council tax and utilities bills as well as a contribution to other claims made. Chris is now paying half of all the housing costs and so we have agreed that his share of the property will return to 50%.
Quite separately and prior to all the recent publicity about expenses, I repaid in full a rebate I received from my electricity supplier for overpayments during 2004-2008. The amount was £1,995.95 which I passed on to the Fees Office.
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