Phil Heatley

Wellington, Feb 25 NZPA - An emotional Phil Heatley resigned as minister this morning over misspending the taxpayers' money.

He has now given all his accounts to the Office of the Auditor General to investigate.

Mr Heatley, who was Minister of Housing and of Fisheries, today revealed that he put in a claim for two bottles of wine saying it was for food and beverages.

The incorrect claim came after he had already bee caught out using his ministerial credit card to pay for a family trip and other personal transactions.

"I've had to pay back things that have been charged and I need to do that and I will do that," he told a media conference.

"The difference here is I have represented, signed a document, that is not accurate and that's a step too far. It's just a step too far.

"It tipped it over the edge for me."

Mr Heatley said it had been a privilege to serve as a cabinet minister and he had failed to live up to his own standards.

"...And for that I am embarrassed and immensely sorry".

The latest error was discovered when he rechecked his accounts following the earlier controversy.

"I have absolutely no desire to become the focus of a distraction for this Government, which has much to do to grow the economy, invest in jobs and help Kiwis get ahead."

Mr Heatley was not surprised Prime Minister John Key accepted the resignation, which he tendered this morning.

"I wanted him to accept it because I meant it. I want to resign, I haven't lived up to my own standards."

He would remain in Parliament as MP for Whangarei which he has represented since 1999.

"I think I need to spend a long time on the backbenches."

Mr Heatley this week paid back over $1000 worth of illegitimate spending, the bulk of which involved a taxpayer-funded family trip to the South Island where he visited Kaikoura's Whale Watch and attended a conference in Christchurch.

He made a public apology after the spending discrepancies, including wine and food he bought at a National Party conference last year, was outlined in The Dominion Post.

Mr Heatley has also been under fire in the past for his accommodation allowances.

Energy Minister Gerry Brownlee also apologised this week and repaid $151.90 spent outside the rules in September for a lunch with his electorate staff.

He is the second government minister to resign after Richard Worth resigned following the election over inappropriate behaviour.