Rt Hon John Key

Prime Minister

7 December 2010

Media Statement

PM welcomes review of Civil List Act

Prime Minister John Key today welcomed the tabling of the Law Commission’s review of the Civil List Act 1979.

“I acknowledge that Ministers’ and MPs’ expenses are a matter of public interest – hence the moves made during this parliamentary term to provide more transparency on their expenditure.

“It is important that the regime for setting Ministers’ and MPs’ expenses has the public’s confidence,” says Mr Key.

“The Government accepts the Law Commission’s recommendation that having Ministers’ and MPs’ expenses determined by an independent body will better ensure public confidence. Accordingly, it is the Government’s intention to accept the broad thrust of the recommendation to move decision-making regarding remaining MP and Ministerial expenses to an enhanced Remuneration Authority.”

Mr Key says prior to introducing legislation to Parliament, the Government will consult with the Speaker and other parliamentary parties on the detail of the Law Commission’s recommendation, such as the make-up of the enhanced Remuneration Authority and the specific matters to be handed over.

“In making this change, it will be important to ensure that the needs of Ministers and MPs to carry out their responsibilities continue to be met,” says Mr Key.

“Cabinet will consider the timing of the new legislation early in the new year, but it is my intention that it will be passed before the end of 2011.

“With respect to the other recommendations set out in the review, the Government will consider them in greater detail over the coming months and respond to Parliament in due course.”

ENDS

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