By Maggie Tait of NZPA

Wellington, Feb 26 NZPA - Ministerial Services warned former minister Phil Heatley about his work credit card use.

Mr Heatley resigned yesterday as minister for housing and fisheries because he had inappropriately spent money on his ministerial credit card and signed a claim for a dinner when he actually spent $70 spent on two bottles of wine.

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

It was the claim for dinner that led to his decision to resign his portfolios despite earlier controversy over his spending which included taking his family on a trip to the South Island.

A Department of Internal Affairs letter dated September 8 told Mr Heatley he had not provided all receipts required.

It adds: "Due to the scrutiny that credit cards attract we would like to remind you that all records are open to review and should comply with the five expenditure principles in clause 3.1 of the Ministerial Office Handbook."

Cards are only meant to be used for ministerial purposes and have to be properly documented.

The Ministerial Services manager then suggested Mr Heatley call her if he needed anything clarified.

The spending on Mr Heatley's card markedly dropped off after that letter. Previously he used it to pay for personal expenses and then paid them back, but that was against the rules.

On March 11 one of Mr Heatley's staff wrote to Ministerial Services to explain the reason family tickets on the ferry to the South Island were put on the card. The staff member said the card was used to secure cheap fares because the Interislander's computer was down and because of Mr Heatley's travel warrant.

Mr Heatley took his family on a work trip and paid for fares and meals on the card. He paid back the $1000 spent this week.

Yesterday Prime Minister John Key questioned why Mr Heatley's bad spending habits were not picked up by Ministerial Services, but now it appears they were.

Mr Heatley's spending habits markedly improved after the sletter with only a $69.95 wallet included with legitimate spending on luggage in November. He paid that back.

Labour has questioned why Mr Heatley resigned when Mr Key was happy with a stand down period.

Mr Heatley will remain on the backbench as MP for Whangarei.

Labour leader Annette King yesterday said it was strange that Mr Heatley resigned when Mr Key would have been comfortable with a stand-down.

"Is there more to it? It just seems strange and a mystery as to why a minister would stand down when his prime minister said he didn't need to." Mr Key left the door to Mr Heatley returning to Cabinet open saying it would depend on an audit office report.

Mr Heatley said he resigned because he had not met his own standards. Mr Key said Mr Heatley's actions were untidy and careless but he didn't think there had been any intentional wrongdoing.

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

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

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