Bill English

Wellington, Sept 29 NZPA - Finance Minister Bill English may have paid back his all his ministerial housing allowance and ended any future payments, but Labour says that is not the end of the issue.

Mr English moved yesterday to try to end the controversy around his ministerial housing allowances, saying it was distracting the Government and there were more important issues to deal with.

Mr English believed he had broken no rules and had just tried to keep his family together.

Labour MP Pete Hodgson said the pressure had forced Mr English to do the right thing.

"But we believe other issues around his housing allowance still need to be cleared up -- in particular his actions late last year and early this year when he was trying to qualify for the larger allowance," he said.

"For example, we still don't know why Mr English changed his trust deed and why John Key accepted this."

"Whatever the technicalities, its clear that Mr English has not lived in Dipton for some time and it's regrettable that it has taken pressure from the media and the opposition for him to finally admit this."

Mr English's move to try to end the issue came as a TV One poll showed that voters felt the issue was denting his credibility.

Asked if the issue had damaged his credibility, 62 percent said yes and 27 percent no; asked if Mr English had acted with integrity, 54 percent said no and 30 percent yes.

Mr English has been embroiled in a row over housing allowances after it was revealed he was claiming a much higher allowance for living in the same house as a minister than he lived in as an Opposition MP.

Despite him paying back all $32,000 difference, Labour may now question why he was receiving any housing allowance as an MP, as his family has been resident in Wellington for many years.

Mr English's family home is in Dipton, Southland, where he has been an electorate MP since 1990.

More questions have been raised over why he declared no pecuniary interest in his family home while applying for the allowance.

To try to put an end to the doubts, Mr English also said he had a legal opinion from Stephen Kos, QC, that changes to his family trust arrangements did not affect his eligibility for the allowance.

The Auditor-General's office was due to have an informal meeting with Mr English last night to consider whether to hold a formal inquiry into the allowance.

Progressive Party leader Jim Anderton had written to Auditor-General Lyn Provost asking for an inquiry into whether Mr English met the criteria for being an out-of-town MP.

Mr English said his family home in Dipton was where he was raised with 11 siblings, it was located on English Road and his family had been there for 120 years.

"It is not really up to anyone else to decide just whether it is home."

Mr English would not expand on why he changed the arrangements of his trust deed, saying it was for family and personal reasons.

He had been following advice and the rules about how to declare his interests both as an MP and a minister.

Previous Speakers had signed off his family arrangements when he was receiving an MPs' housing allowance.

Asked about the poll, Mr English said the fact there was a poll on the issue showed how out of proportion it had become.