Phil Heatley

Wellington, Feb 26 NZPA - Whangarei MP Phil Heatley's resignation from the Cabinet has puzzled his constituents and his electorate chairman says the reason appears to have been no more than a technical issue.

A distraught Mr Heatley yesterday resigned his housing and fisheries portfolios because he had wrongly spent money on his ministerial credit card and signed a claim for a dinner when in fact the $70 was the charge for bottles of wine.

He has paid the money back and has explained he didn't properly study the rules covering ministerial credit cards.

It was the claim for dinner that caused him to decide to resign his portfolios.

"The difference here is I have represented, signed a document, that is not accurate and that's a step too far. It tipped it over the edge for me," he said at a press conference.

"I want to resign. I haven't lived up to my own standards."

TV One interviewed people in the streets of Whangarei last night and they all had similar reactions -- they didn't think he had done anything that warranted a resignation and didn't seem to be sure about why he had felt he had to do it.

National's Whangarei electorate chairman, Murray Broadbelt, told NZPA Mr Heatley was a popular and hard working MP.

"It's very disappointing and sad that Phil has decided to resign his cabinet portfolios over what appears to be a technical issue over how he reported an expense," Mr Broaldbelt said.

"I think the people of Whangarei accepted his apology earlier in the week but then he's decided off his own bat last night to offer his resignation."

Mr Heatley has given his accounts to Auditor-General Lyn Provost to go over them.

Prime Minister John Key hasn't ruled out having him back in the Cabinet and says he would have preferred Mr Heatley to stand down while the Auditor-General carried out her examination of his credit card accounts.

He said Mr Heatley's actions were untidy and careless but he didn't think there had been any intentional wrongdoing.

"His interpretation of the rules were that as a minister outside of Wellington or his electorate he was able to use his credit card for food or beverage," Mr Key said.

"That's actually incorrect...but that's what he understood and in that regard his motivations were I think genuine and honest."

Earlier, this week Mr Heatley paid back just over $1000, most of which was spent on a family trip to the South Island where he attended a conference.

Maurice Williamson has taken over Mr Heatley's housing portfolio and David Carter fisheries. Both are temporary appointments.