Lockwood Smith

Wellington, June 3 NZPA - A special cross-party committee of MPs is expected to meet before the end of the week to discuss the transparency around the reporting of parliamentary expenses.

Speaker Lockwood Smith announced last night he was setting up the committee, just hours after Prime Minister John Key called for it.

The inquiry has been prompted by the scandal surrounding the House of Commons, where some MPs have been forced to resign because of their extravagant claims.

Party leaders here say the system is different and isn't open to the same sort of abuse, but they agree the level of transparency should be looked at.

The Greens had a share in provoking the move when they said the expenses of their nine MPs from January 1 to April 30 would be revealed and promised to release details every year.

ACT leader Rodney Hide said he was happy to have his expenses made public and appointing a committee was a "kicking for touch" delaying tactic.

"That's what the last government always used to do -- send things to a committee," Mr Hide said.

Labour leader Phil Goff said he didn't have a problem with the committee being established, although the circumstances were very different to those in Britain.

"I can't claim for a moat or any of the other things that, extraordinarily, British MPs have claimed for," Mr Goff said.

"That is simply not possible in New Zealand."