End nigh for MSP housing subsidy By Paul Hutcheon A BODY set up to overhaul MSPs' expenses will this month back the abolition of the scheme that allows Holyrood politicians to bill the public for mortgage payments in Edinburgh.
The Allowances Review Panel, which could issue its report as early as this week, will recommend that no mortgage claims should be paid for any MSP after the current parliament comes to an end in 2011.
MSPs will be restricted to renting or staying in hotels when they need overnight accommodation at Holyrood. However, they will receive more public money for hiring staff.
The proposal is a victory for the Sunday Herald after we campaigned against the Edinburgh Accommodation Allowance (EAA), which permits MSPs to charge the taxpayer for up to £9446 a year in mortgage costs on a property in the capital. They can also claim for council tax, a television licence and utility bills.
Well-publicised abuses of the scheme prompted the parliament last year to order a review of the entire MSPs' allowances system.
The key recommendation of the review group, which is headed by Dundee University principal Sir Alan Langlands, is for mortgage interest payments to stop in 2011, at the end of the current parliament.
Phased-out abolition of the scheme, which will need to be approved by parliament, will anger the 30 or so MSPs who currently claim up to £1000 a month in mortgage costs.
These MSPs, who include SNP finance minister John Swinney and LibDem leader Nicol Stephen, will no longer be able to claim for properties they have been buying with public money.
Ending the scheme is also likely to put pressure on Westminster to follow
suit. A number of MPs believe the Westminster equivalent of the EAA, the
Additional Costs Allowance (ACA), should also be abolished.
The EAA has helped around 55 MSPs since 1999 buy property in Edinburgh worth
£5.8 million, of which £1.2m was recouped in mortgage interest payments.
The top complaint among the public is of MSPs making huge profits on the sale of their properties while in office. Alex Johnstone, the Tory member for the North East of Scotland, made £60,000 on a flat that public money helped buy.
Jim Wallace, the former LibDem leader, made £69,000 on his taxpayer-funded property dealings, while his colleague Mike Rumbles made post-sale gains of almost £40,000 through the sale of two flats bought partly by the state.
Another creative use of the scheme was MSPs using the perk to trade up on their properties. Tavish Scott, the LibDem MSP for Shetland, used the £36,000 gain made on one taxpayer-funded flat to help buy a £380,000 family home in Morningside. Scott's claim on the public purse increased from £500 to nearly £979 a month as a result.
Another practice was MSPs rearranging their decades-old property holdings in such a way as to allow them to pocket the allowance. Stewart Stevenson, the wealthy SNP transport minister, could not claim for his residence in Linlithgow because he had bought it before he was an MSP.
He then sold the 30-year-old family home for a profit of £267,000, used the money to buy a property close to his old residence, and then claimed mortgage interest on his new place.
Deputy Tory leader Murdo Fraser's use of the allowance also raised eyebrows.
The MSP bills the public for a second home in Edinburgh's Brunton Terrace, but owns another property just around the corner, which he rents out.
A Scottish parliament spokesman said: "We would not comment on the review's report, or any possible recommendations, until after it is published. The report is on schedule to be released in March as planned."
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Posted by: Rab The Ranter, Ayrshire on 11:49am Sun 2 Mar 08
A devalued parliament by devalued elections with devalued politicians. Everyone of them with noses in the trough. VERMIN.
A devalued parliament by devalued elections with devalued politicians. Everyone of them with noses in the trough. VERMIN.
Posted by: Duns Scotus, The Borders on 12:00pm Sun 2 Mar 08
Cue fire sale of second and third homes in the capital.
Cue fire sale of second and third homes in the capital.
Posted by: Strathturret, Montrose on 12:03pm Sun 2 Mar 08
Yes Rab but they haven't declared any illegal wars. Shift your attention to the real dodgy politicians with their no questions asked expenses system;Westminster.
This Alan Langlands will be the Labour supporter and donor. How much is he being paid for this onerous task?
Yes Rab but they haven't declared any illegal wars. Shift your attention to the real dodgy politicians with their no questions asked expenses system;Westminster.
This Alan Langlands will be the Labour supporter and donor. How much is he being paid for this onerous task?
Posted by: politics of envy on 12:21pm Sun 2 Mar 08
For the MSPs who have already bought a property this is the best news going
Simply rent out the pad that the economic illiterates at the parliament refuse to pay a mortgage for, or sell it at a big profit. Then go and rent a swankier pad up the road.
Result: more cosy comfy living for fatcat MSPs and greater expense to public purse,, utter genius Mr H
For the MSPs who have already bought a property this is the best news going
Simply rent out the pad that the economic illiterates at the parliament refuse to pay a mortgage for, or sell it at a big profit. Then go and rent a swankier pad up the road.
Result: more cosy comfy living for fatcat MSPs and greater expense to public purse,, utter genius Mr H
Posted by: politics of stupidity on 12:32pm Sun 2 Mar 08
[quote][bold]politics of envy[/bold] wrote:
For the MSPs who have already bought a property this is the best news going Simply rent out the pad that the economic illiterates at the parliament refuse to pay a mortgage for, or sell it at a big profit. Then go and rent a swankier pad up the road. Result: more cosy comfy living for fatcat MSPs and greater expense to public purse,, utter genius Mr H [/quote] Your argument seems to be that our corrupt politicians rip us off at the moment and if we try to limit what they are up to they will find another way to rip us off because finding ways round the rules is what they spend their time doing. You may be right.
politics of envy wrote:
For the MSPs who have already bought a property this is the best news going Simply rent out the pad that the economic illiterates at the parliament refuse to pay a mortgage for, or sell it at a big profit. Then go and rent a swankier pad up the road. Result: more cosy comfy living for fatcat MSPs and greater expense to public purse,, utter genius Mr H
Your argument seems to be that our corrupt politicians rip us off at the moment and if we try to limit what they are up to they will find another way to rip us off because finding ways round the rules is what they spend their time doing. You may be right.
Posted by: subrosa on 12:44pm Sun 2 Mar 08
Good on the Scottish government for asking this panel to look into this matter. Of course this policy was made by the labour party. Enough said.
Good on the Scottish government for asking this panel to look into this matter. Of course this policy was made by the labour party. Enough said.
Posted by: Wallace, Perth on 12:44pm Sun 2 Mar 08
There's an article in today's Sunday Mail about a LibDem MSP Jamie Stone, who represents a constituency in the far north, I think it's Caithness, Sutherland and Easter Ross. Apparently this is yet another in the mould of Tavish Scott and others, because he is rushing to buy a flat in Edinburgh in order to cash in on the mortgage-claim scam, whereby he'll be able to sell the property in the future and pocket the profit. If he did the honourable thing and waited for the new tightening up rules to come into force in a few months time, he wouldn't be able to fill his bank account from the public purse, as these new rules will probably not be retrospective. Yet another example of a greedy politician in it for what he can get out of it, rather than to "serve" his constituents and "make a difference". I wonder if Nicol's nose detects the smell of sleaze here? I doubt it.
There's an article in today's Sunday Mail about a LibDem MSP Jamie Stone, who represents a constituency in the far north, I think it's Caithness, Sutherland and Easter Ross. Apparently this is yet another in the mould of Tavish Scott and others, because he is rushing to buy a flat in Edinburgh in order to cash in on the mortgage-claim scam, whereby he'll be able to sell the property in the future and pocket the profit. If he did the honourable thing and waited for the new tightening up rules to come into force in a few months time, he wouldn't be able to fill his bank account from the public purse, as these new rules will probably not be retrospective. Yet another example of a greedy politician in it for what he can get out of it, rather than to "serve" his constituents and "make a difference". I wonder if Nicol's nose detects the smell of sleaze here? I doubt it.
Posted by: Duns Scotus, The Borders on 12:55pm Sun 2 Mar 08
Wallace @ 12:44pm
re my earlier post ... cue mad rush to buy Edinburgh houses before the gates close!
Wallace @ 12:44pm
re my earlier post ... cue mad rush to buy Edinburgh houses before the gates close!
Posted by: Robbie, London on 12:58pm Sun 2 Mar 08
Am I the only perdon who thinks its a good idea for our representatives to have an allowance to purchase a property in the capital?
Frankly, we already pay our representatives a pittance for their 70-80 hour week (I'm 25 and I already more then an MSP - had to leave Scotland to get it, mind). Removing the EAA not only reduces their compensation, it also makes their job that much more unpleasant(I speak as a consultant whose job involves a lot of travel). There is nothing less satisfying than a career that requires you to be away from home 4-5 days a week in hotels; at least owning a home in Edinburgh allows them to partially settle in.
So lets bin the prurience about MSP expenses, pay them a decent wage, and acknowledge that their jobs are often unpleasant and difficult.
Am I the only perdon who thinks its a good idea for our representatives to have an allowance to purchase a property in the capital?
Frankly, we already pay our representatives a pittance for their 70-80 hour week (I'm 25 and I already more then an MSP - had to leave Scotland to get it, mind). Removing the EAA not only reduces their compensation, it also makes their job that much more unpleasant(I speak as a consultant whose job involves a lot of travel). There is nothing less satisfying than a career that requires you to be away from home 4-5 days a week in hotels; at least owning a home in Edinburgh allows them to partially settle in.
So lets bin the prurience about MSP expenses, pay them a decent wage, and acknowledge that their jobs are often unpleasant and difficult.
Posted by: Wallace, Perth on 1:13pm Sun 2 Mar 08
Robbie, London, I agree on one aspect of your point about paying our MP's and MSP's an above average salary and covering their expenses, as doing that should cut out any need for our representatives to indulge in corruption in order to maintain an acceptable standard of living. However, what is disgusting everyone is how our current representatives, who are not poorly renumerated, are bending their self made rules in order to enrich themselves from the public purse. No-one, myself included, begrudges them the going rate for the job they do, rather it's the fact of their apparent greed and snouts-in-the-trough attitude, selling on properties purchased from public funds, for huge profits a few years later, etc. That can't be justified, and it's not envy that prompts the disapproval of voters like myself, it's anger and disgust.
Robbie, London, I agree on one aspect of your point about paying our MP's and MSP's an above average salary and covering their expenses, as doing that should cut out any need for our representatives to indulge in corruption in order to maintain an acceptable standard of living. However, what is disgusting everyone is how our current representatives, who are not poorly renumerated, are bending their self made rules in order to enrich themselves from the public purse. No-one, myself included, begrudges them the going rate for the job they do, rather it's the fact of their apparent greed and snouts-in-the-trough attitude, selling on properties purchased from public funds, for huge profits a few years later, etc. That can't be justified, and it's not envy that prompts the disapproval of voters like myself, it's anger and disgust.
Posted by: Frank O'Donnell on 1:24pm Sun 2 Mar 08
[quote][bold]subrosa[/bold] wrote:
Good on the Scottish government for asking this panel to look into this matter. Of course this policy was made by the labour party. Enough said.[/quote] And, as shown by the article, willingly (ab)used by members of the SNP Cabinet. Enough said.
subrosa wrote:
Good on the Scottish government for asking this panel to look into this matter. Of course this policy was made by the labour party. Enough said.
And, as shown by the article, willingly (ab)used by members of the SNP Cabinet. Enough said.
Posted by: Observer on 2:05pm Sun 2 Mar 08
Yes Frank the system is open to abuse by anyone, that is why it should be changed. Rob if you think a job is ''unpleasant and difficult'' because you have to be away from home 4-5 days a week than you can't have a lot of life experience, although you've obviously got lots of money. Thanks for sharing that with us.
Yes Frank the system is open to abuse by anyone, that is why it should be changed. Rob if you think a job is ''unpleasant and difficult'' because you have to be away from home 4-5 days a week than you can't have a lot of life experience, although you've obviously got lots of money. Thanks for sharing that with us.
Posted by: Buy to Lettter, Edinburgh on 3:47pm Sun 2 Mar 08
duns scotus 12.00pm, no fire sale in the Capital, our house prices are still on the up unlike many other scottish towns and cities i could mention!!!
duns scotus 12.00pm, no fire sale in the Capital, our house prices are still on the up unlike many other scottish towns and cities i could mention!!!
Posted by: sam, greenock on 4:42pm Sun 2 Mar 08
[quote][bold]Buy to Lettter[/bold] wrote:
duns scotus 12.00pm, no fire sale in the Capital, our house prices are still on the up unlike many other scottish towns and cities i could mention!!![/quote] Buy to Lettter,
Greenock's property prices are on the up too, and it's only our MSPs and MP who are erses, unlike Embra which is full of them(erses that is)
Buy to Lettter wrote:
duns scotus 12.00pm, no fire sale in the Capital, our house prices are still on the up unlike many other scottish towns and cities i could mention!!!
Buy to Lettter,
Greenock's property prices are on the up too, and it's only our MSPs and MP who are erses, unlike Embra which is full of them(erses that is)
Posted by: emma, glasgow on 8:25pm Sun 2 Mar 08
Cushy number, what other job lets you bill your mortgage for the entire length of time you have your job, then to top it up vote yourself wage rises brilliant!
Cushy number, what other job lets you bill your mortgage for the entire length of time you have your job, then to top it up vote yourself wage rises brilliant!
Posted by: subrosa on 9:52pm Sun 2 Mar 08
Posted by: Frank O'Donnell on 1:24pm today
At least the cabinet are doing something to halt it rather than let it continue for another 8 years.
Posted by: Frank O'Donnell on 1:24pm today
At least the cabinet are doing something to halt it rather than let it continue for another 8 years.
Posted by: Wallace, Perth on 10:37pm Sun 2 Mar 08
I have just read a story in the Sunday Express that the Westminster lot are considering awarding themselves a £160 per day attendance allowance, if they are forced to give up their current open-to-abuse allowances. And these are the same people who vote to keep public sector workers to a 2% limit on wage settlements. Unbelievable the greed and self-serving arrogance of these pigs, led by Speaker Martin!
I have just read a story in the Sunday Express that the Westminster lot are considering awarding themselves a £160 per day attendance allowance, if they are forced to give up their current open-to-abuse allowances. And these are the same people who vote to keep public sector workers to a 2% limit on wage settlements. Unbelievable the greed and self-serving arrogance of these pigs, led by Speaker Martin!
Posted by: Never believe a politician, Another planet on 10:32pm Sat 8 Mar 08
[bold]End nigh for MSP housing subsidy[/bold]...........Aye right!!!
End nigh for MSP housing subsidy...........Aye right!!!
Posted by: dave, highlands on 7:55pm Wed 21 May 08
Jamie Stone is a waste of time in that he said he was going to look at the price of fuel up here but we are still amongst the highest pump prices. He even claimed for a small carton of milk for his office.I hope he did not make a claim for the personised number plate for his car we have help run. He claims for food when out and about as if he did not have to pay for that if he had a proper job.He says he needs the flat so that his wife can stay with him in Edinburgh, well we did not elect Mrs Stone nor did we need to pay for a two bed flat he rented when hsi daughter was in Edinburgh.
Jamie Stone is a waste of time in that he said he was going to look at the price of fuel up here but we are still amongst the highest pump prices. He even claimed for a small carton of milk for his office.I hope he did not make a claim for the personised number plate for his car we have help run. He claims for food when out and about as if he did not have to pay for that if he had a proper job.He says he needs the flat so that his wife can stay with him in Edinburgh, well we did not elect Mrs Stone nor did we need to pay for a two bed flat he rented when hsi daughter was in Edinburgh.
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