(Pix avail ex nzpa images.co.nz)

By Maggie Tait of NZPA

Wellington, Feb 25 NZPA - Phil Heatley resigned his ministerial roles after Prime Minister John Key asked him about a claim for bottles of wine.

An emotional Mr Heatley resigned as Housing and Fisheries 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 Key said officials had been talking to the auditor-general's office already over the expenses issue. An investigation would start this afternoon to check the appropriateness of the expenses claimed by Mr Heatley.

"It came to my attention yesterday that the documentation used to support Mr Heatley's expenses claim for $70 in Christchurch last year was incorrect," Mr Key said.

The expenses claim said the spending was listed as minister and spouse: dinner.

The actual credit card receipt was notated by him as minister and spouse for food and beverage. The credit card was used for two bottles of wine for his and his wife's table at the National Party Conference.

"I have asked Mr Heatley to explain the inconsistency and he has indicated to me that this was an unintentional error on his part, and he had not sought to mislead Ministerial Services in the characterisation of his claim.

"However, he feels that he has not lived up to the high standards required of a minister and has resigned his portfolios."

Mr Key said he expected high standards from ministers but said they also made human mistakes.

"I have no reason at this stage to believe that Mr Heatley has been dishonest. However, it is important that the auditor-general investigates this issue to ensure that public money is spent appropriately."

He had asked Ministerial Services to work with the auditor-general to look at systems and processes for dealing with ministerial expenses.

Maurice Williamson and David Carter would act in the Housing and Fisheries portfolios respectively for now.

Mr Heatley's latest incorrect claim came after he had already been 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".

"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 Mr 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.

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