Second homes allowance will be scrapped

AN allowance which lets AMs buy second homes and kit them out at the taxpayers' expense is to be scrapped, it has been confirmed.

It is understood that the Assembly's authorities have accepted all the recommendations of an independent inquiry into a new pay and expenses regime.

Published on Monday, it cuts the number of AMs entitled to a second home from 51 to 25 and prevents them from claiming for mortgage payments after the next election in 2011.

It said AMs should instead get a furnished flat within five miles of the Senedd. Those buying their own property or renting from non-approved agents would only be allowed to claim for their utility bills and council tax.

In a Senedd statement, Presiding Officer Lord Elis-Thomas said: "I am pleased that we are making these changes in the year that we mark 10 years of devolution.

"We are signalling a clear break, once and for all, with the traditions and practices of some parliamentary bodies of the United Kingdom and providing a lead for those who are serious about democratic reform."

He said work would start immediately on shaking up AMs' salaries so they can be set every four years and a link with MPs' pay is broken.

He thanked the independent panel that produced the review, which contains 108 recommendations.

The Presiding Officer said a proposal to stop AMs paying bonuses to their staff from their expenses would be up for discussion. There was no intention to reduce conditions for staff, he said.

Accepting the report will mean banning AMs from hiring relatives, although it said those already employing family members should be allowed to continue to do so.

There was broad support for the reforms across the chamber from the four parties.

Plaid Cymru's Dai Lloyd said AMs needed to "regain the trust of the people, and the report before us is a clear and firm response".

This was a "substantial and significant first step towards rebuilding our relationship with the public", he said.

Tory AM Paul Davies said: "Transparency is essential in order to ensure that the people of Wales are confident about the way in which their politicians are spending public money."

Welsh Liberal Democrat leader Kirsty Williams said it was essential that AMs get appropriate resources needed to carry out their duties.

"Those resources should be no more and no less than what we need to get the job done," she said.

Expenses claims for last year were published online last week, showing almost £6,500 of taxpayers' money was spent on furniture and electrical goods for AMs' second homes.

They claimed more than £230,000 for mortgages and rent, nearly £50,000 for meals and subsistence, and £4,500 for air travel.