Michael's Expenses

22^nd May 2009

MPs’ Pay and Expenses- A ‘Not For Profit’ Organisation

When I became MP for Hastings and Rye on the 1^st May 1997 it was for me the best job in the world. It still is. To be able to represent my friends, my family and my neighbours in Parliament- I’d have done it for free if that was possible.

I am perhaps more distressed than my constituents that some colleagues appear to have behaved so badly. I still hope and believe that most of my colleagues are indeed honourable Members but all I can say is what I have been up to and to explain perhaps a little more about the ‘income and expenditure’ of MPs, which may not always be obvious.

It’s my belief that with so many wonderful folk in Hastings and Rye offering their services as volunteers MPs should also be ‘not for profit’ organisations and I hope this will explain where I stand.

MPs’ pay

I know for sure that as an MP I earn a great deal less than many headteachers, senior police officers, senior civil servants and indeed the senior partners of solicitors- the job I was in before my present role. My £693 a week pick up pay however is fine by me; it pays the mortgage, it gives me a good standard of living and I am always mindful that it is two or three times the average income of my constituents.

In the current climate I have followed Gordon Brown’s lead (together with other colleagues) and I have forgone this year’s pay rise directing that it be paid to the Charity Aid Foundation.

MPs’ Expenses

I do need some expenses to do my job, and that’s the issue of the day, so let me explain just what those expenses are and what I spend in doing the job. Apart from my pay I receive reimbursement towards:

a) My travel

b) My staff and office costs

c) Communication expenditure

d) Additional Cost Allowance (better known as the second home payment)

A. Travel costs

I am reimbursed my travel costs when I travel by rail or by car. By rail, although permitted to travel first class I never do. I use my travel card and as with everything ensure that I secure for the public purse the lowest possible cost, as if it were my own money. I receive 40p per mile for using my car, which more or less covers my cost. In 1997 it was up to 74.1p a mile! A rate introduced by the former Tory Government but changed immediately by Tony Blair when we came to office. We must of course purchase, insure and run our own motor vehicles, recovering only the cost of the mileage we do.

B. Staff and office costs

I am justly proud of the service we offer constituents- unmatched around here in the past or the present. I maintain three offices- (a) in Westminster, (b) in Bohemia Road and (c) at my home.

The constituency office is open to the public from 9.30am to 4.00pm each day with a human voice to answer every query. I employ six full and part time staff (and often an intern too) who I believe offer the best possible service of any MP office in the land. It’s important but it costs. Shortly the accounts for the years 2004/05, 2005/06, 2006/07 and 2007/08 will be published, but I can tell you now that my expenditure incurred and expenses recovered in those years was as follows:

	Expenditure incurred and agreed with Inland Revenue	Expenses recovered from Department of Resources	Unrecovered expenditure met by Michael Foster
2004/05	£96,084	£89,661	£6,423
2005/06	£107,352	£104,080	£3,272
2006/07	£110,023	£107,716	£2,307
2007/08	£113,223	£111,844	£1,379

I would not normally make the point but in those years my total expenditure exceeded the monies recovered in respect of staff and office costs in each year, and amounted to £13,381 in total. That I have paid from my own pocket. But I’m not complaining

The above overspends included additional staff costs and costs such as attending the Hastings Sierra Leone twinning in Sierra Leone (£500) as Hastings MP, together with other office expenditure.

NB The full accounts for these periods will be published in July by the Parliamentary authorities, but copies are available in paper form now for inspection in my office.

C. Communications Allowance

In 2007/08- the first year of this allowance- I spent a little over £10,000 in sending out Annual Reports and other communications to keep my constituents informed. The total costs expended were entirely on printing and distribution. I recovered most of what I spent.

D. Additional Cost Allowance (second home)

MPs have a special job in that they do not simply ‘travel to work in London’. Their work is based in two places; London and the constituency (in my case Hastings and Rye). Because I have always lived in Hastings my constituency home is my main home. I’ve lived there for more than 30 years and I would not see that changing. I do not claim any Parliamentary expenses for my main home in St Leonards-on-Sea. Although in part it is used as a third Parliamentary office I do not claim ‘rent’ as some MPs have done. Neither do I have my Wisteria removed from my chimney at the public’s expense!

It is possible to return to Hastings on some occasions after the Parliamentary day but generally on at least two nights per week Parliament doesn’t adjourn until at least 10.30pm and last week on one occasion it was 1.30am. It is not practicable on those occasions to be back in Parliament at 9.30am the next morning if returning to the constituency in the meantime.

When I decided that it was necessary to have a base in London I looked to see how this could be achieved at the least possible cost and found that I could purchase a long lease of a studio flat in the Elephant and Castle, the mortgage interest on which would be less than the rental of the same property, so I purchased the long lease accordingly.

Because I am aware that there is concern about MP’s use of the second homes allowance I am attaching to this note my claims for the four years in question- 2004/05, 2005/06, 2006/07 and 2007/08, in advance of the publication by the Parliamentary Authorities in July. I will explain how the figures work out.

Over the four years I have incurred costs of less than two thirds of the maximum allowed, but as this is a reimbursement of necessary costs I do not see the need to spend public monies beyond the minimum that is required to do my work.

It will be seen from the ACA accounts (accessible at the bottom of this page) that there are three types of expenditure (a) mortgage interest and maintenance costs, (b) the purchase of necessary furniture and furnishings, (c) miscellaneous costs including food and other incidental expenditure of ‘living in London’.

a) Mortgage interest and maintenance costs

Over the four year period I expended on mortgage interest, service charges, maintenance and cleaning an average of £10,605 per annum or £883 a month. Bank/Building Society statements were provided to cover every part of this claim for reimbursement.

b) Furniture and furnishings

The initial furniture in the flat was purchased by me without contribution from Parliamentary funds when the lease was taken on. Only modest replacement items have since been claimed for over the four year period, as follows:

Digi-box for Parliamentary channel: £44.99

Jug kettle: £12.98

Foot rail for bed: £22.00

Light fitments: £115.20

Additional light fitment: £8.49

Washing machine: £279.95

Delivery/fit washing machine: £35.00

TV/DVD (19 inch) and aerial: £269.96

Total: £788.57 (£197 per year)

c) ‘Living in London’ costs

Living in London cost covers subsistence and other miscellaneous items including household goods, cleaning materials, toilet and kitchen rolls and small items of furnishings (less than £25). The Commons authorities do not require and discourage receipts for items under £25. A sum of up to £4,800 per year (£400 a month) is claimable for food.

Typically Members of Parliament ‘eat out’ in the House of Commons or nearby and during the 35 weeks each year that Parliament is sitting would expend weekly approximately the following on their own food.

1 meal in Members dining room with colleagues £15.00

1 meal in Dining room with guests £23.00

Five meals (lunch/dinner) in ‘canteen’, at £4.50 £22.50

10/15 coffees or teas £15.00

Tesco ‘shop’ £18.00

Total: £93.50

Additionally the following approximate expenditure is incurred with the Refreshment Department (HOC) but for which I do not claim.

i)	Refreshments (coffees, snacks etc) for staff, constituents, and other visitors including schools attending Parliament. Over a year	£350
ii)	Entertainment (dinners, meals etc) for invited constituents, prize winners (including Tea on the Terrace winners) and sponsorship of events such as Methodist Fellowship, other group events etc, amounting each year to	£900
iii)	Purchases of whiskeys, wines, chocolates and other Parliamentary memorabilia for raffles and other fundraising events requested by constituent organisations over a year	£750+.
iv)	Own subsistence during recess when in London	Infrequent

Total: £2,000

Although these very substantial costs arise from Parliamentary life in London the rules say it is only the MP’s personal expenditure that can be reimbursed.

In order that I should not ‘over-claim’ I have limited my claims to £80 or £85 a week for the Parliamentary session only- nothing in the recess- as a contribution to food costs and the household items referred to above. I restrict my claim as I would be ‘eating’ if at home but not ‘eating out’ all the time as is the norm in Westminster.

Other (unrecoverable) costs of Office

Labour Members of Parliament are also required to pay from net salary £1,300 per annum for the Parliamentary Labour Party organisation as well as voluntary political contributions.

Finally I am also happy to contribute to local organisations who approach me in my capacity as MP for financial contributions and to cover any cost of events attended. It is somewhat embarrassing to raise this point but in the past year charitable giving (over and beyond that which I would give by way of personal contribution) has amounted to approximately £1,750.

Second jobs as well as second homes- the issue

To the extent that I do any other work as a consultant solicitor for my former firm (‘keeping my hand in’) I donate any profit to the Charity Aid Foundation so as to ensure that I live entirely on an MP’s income (any other income I receive from speeches (occasionally), surveys etc is paid directly to local voluntary organisations. I do not receive anything beyond my net salary as an MP).

I very much welcome Parliament’s decision as from 1^st July that anyone who has a second job declares what it is, how long they spend and how much they earn. Being an MP is a full time job and leaves little room for much else.

Conclusion

I am not wearing a ‘hair shirt’ and it is somewhat embarrassing to be ‘baring one’s soul’ on such issues as money but I want to be unambiguous in making clear that I do not seek, and never will seek, to profit from my role as a Member of Parliament. That is a privilege and reward enough. Service to the community, not self service, matters.

MICHAEL FOSTER DL MP

HOUSE OF COMMONS

LONDON

SW1A 0AA 22^nd May 2009

Notes

1) My wife Rosemary is a valued member of my staff working part time as my Diary Manager/Administrator. I do not disclose the salaries of any member of my staff but can confirm that I expend c£91,000 on staff salaries for six full and part time members of staff and that Rosemary is paid less than three and more than two of the other staff.

2) The additional costs of Office not recoverable in expenses over the four years of the accounts is c£28,000 in addition to the £5,000 political contribution to the PLP.

3) Copy of the letters sent to constituents who have enquired and a copy of the letter sent to the Hastings Observer to correct errors in their story of 22^nd May are below

Constituent letter:

Observer letter:

Full Accounts: