Noses, Troughs and Norwich North
A by–election is taking place today in the constituency of Norwich North – the first of its kind since the MPs’ expenses scandal.
In fact, the election is being held precisely because of the expenses scandal – because the sitting MP, Ian Gibson, resigned his seat.
He did so after being told by the Labour Party’s Star Chamber (which is investigating alleged wrongdoers) that he would not be allowed to stand for Labour at the next general election.
The incredible thing is that the Ian Gibson did the right thing by resigning – but he did so for the wrong reason – because he is adamant that he did nothing wrong.
What he did was to buy a flat in 1999 for £195,000 – and paid for the upkeep and maintenance costs out of his MP’s accommodation allowance – over four years he claimed £80,000 in mortgage interest and bills.
Nothing wrong with that in itself – because MPs should not be out of pocket for having to live in London when Parliament is sitting – commuting is not an option for most, so the only answer is to rent or buy a property or stay in a hotel.
But Mr Gibson’s case illustrates well – what’s wrong with the present system.
Firstly, he allowed his daughter and her partner to stay in the property – he was there himself only 3 days a week - so he must have bought a property that was much larger than his own needs.
Mr Gibson also allowed his daughter and her partner to live there rent free – so in effect the tax payer handed a sizeable rent free gift to the MP and/or member of his immediate family.
But the real scandal is that Mr Gibson went on to sell the property to his daughter at a knock down price of £162,000 – £33,000 less than he paid for it – and much less than the property was actually worth – £325,000 or thereabouts according to the Daily Telegraph and other media reports.
So, the MP made a huge personal profit of around £130,000 (£325,000 - £195,000) which he gave generously his daughter – but, of course, this generous gift was effectively being made out of public funds.
But what Ian Gibson is angry about is that he’s not alone – many other MPs’ have done the same – but most of them have held on to the capital gain for themselves - instead of passing it on to a family member.
So, Mr Gibson’s charge is that the Labour Party is being hypocritical in singling him out for special treatment – when so many of his colleagues are guilty of exactly the same charge.
And on that narrow point he’s absolutely right – until all the political parties prevent MP’s from benefiting so handsomely out of their ‘expenses’ – nothing will change.
In fact, the election is being held precisely because of the expenses scandal – because the sitting MP, Ian Gibson, resigned his seat.
He did so after being told by the Labour Party’s Star Chamber (which is investigating alleged wrongdoers) that he would not be allowed to stand for Labour at the next general election.
The incredible thing is that the Ian Gibson did the right thing by resigning – but he did so for the wrong reason – because he is adamant that he did nothing wrong.
What he did was to buy a flat in 1999 for £195,000 – and paid for the upkeep and maintenance costs out of his MP’s accommodation allowance – over four years he claimed £80,000 in mortgage interest and bills.
Nothing wrong with that in itself – because MPs should not be out of pocket for having to live in London when Parliament is sitting – commuting is not an option for most, so the only answer is to rent or buy a property or stay in a hotel.
But Mr Gibson’s case illustrates well – what’s wrong with the present system.
Firstly, he allowed his daughter and her partner to stay in the property – he was there himself only 3 days a week - so he must have bought a property that was much larger than his own needs.
Mr Gibson also allowed his daughter and her partner to live there rent free – so in effect the tax payer handed a sizeable rent free gift to the MP and/or member of his immediate family.
But the real scandal is that Mr Gibson went on to sell the property to his daughter at a knock down price of £162,000 – £33,000 less than he paid for it – and much less than the property was actually worth – £325,000 or thereabouts according to the Daily Telegraph and other media reports.
So, the MP made a huge personal profit of around £130,000 (£325,000 - £195,000) which he gave generously his daughter – but, of course, this generous gift was effectively being made out of public funds.
But what Ian Gibson is angry about is that he’s not alone – many other MPs’ have done the same – but most of them have held on to the capital gain for themselves - instead of passing it on to a family member.
So, Mr Gibson’s charge is that the Labour Party is being hypocritical in singling him out for special treatment – when so many of his colleagues are guilty of exactly the same charge.
And on that narrow point he’s absolutely right – until all the political parties prevent MP’s from benefiting so handsomely out of their ‘expenses’ – nothing will change.
