MSPs' mortgage allowance to be reviewed

George Reid, the Scottish Parliament's Presiding Officer, announced that officials would investigate the system and suggest possible reforms.

But he stressed nothing would be done before the election and any changes would have to be discussed by the new parliament elected next May.

MSPs can claim the Edinburgh Housing Allowance to cover interest-only mortgages on properties in the capital if they live too far away to commute to Edinburgh. They can also claim back the cost of utility bills and council tax on these properties.

The system has come in for intense criticism, particularly because some MSPs have bought properties using the scheme then sold them later for substantial profits which they have been able to keep for themselves.

The scheme came under the spotlight again earlier this week when it emerged that Tavish Scott, the transport minister and MSP for Shetland, has been claiming 979 a month from the taxpayer to cover the costs of a mortgage and other bills on a big house in the city's Morningside area.

Tommy Sheridan, the Solidarity MSP, has been a vociferous critic of the scheme and has called for it to be scrapped as soon as possible.

Jack McConnell has also expressed his reservations about the scheme and has called on the Scottish Parliament's Corporate Body (SPCB) to review it.

Yesterday the corporate body met and decided the scheme should be reviewed - but not until after the election.

Mr Reid said: "The current system of allowances was brought in by unanimous vote of parliament in June 2001. The Corporate Body has no authority to alter that system. It can be changed only after further debate and vote of parliament.

"We acknowledge that there are issues to be addressed, but they are complex and have to be addressed in total."

And he added: "It is the SPCB's intention to have all the arguments delineated by March 2007 for determination by our successors after the elections in May."

The review of the Edinburgh Accommodation Allowance will be part of a broader investigation into the allowances system for MSPs.

Officials will be asked to find out whether there is any realistic alternative, either for the parliament to purchase a block of flats for MSPs or to put them all up in hotels, or whether there is any way of preventing the MSPs from making a profit, while keeping the system broadly the same as it is now.

Other parts of the system have come in for criticism, particularly as all MSPs get access to the same resources, whether or not they are constituency MSPs with constituency workloads, or regional list MSPs with a much broader remit.

Other changes which could come about as a result of the review are:

• Changes to the pay and conditions of MSPs' staff. At the moment researchers and secretaries are paid out of each individual MSP's allowance, but this could be changed to make them direct employees of the parliament.

• Changes to the office system, setting down different requirements for constituency and regional list MSPs.

Mr Sheridan said last night the review was "long overdue" but "welcome none the less". He said: "The Edinburgh accommodation scheme is not only discredited, it's unacceptable. No individual MSP should be allowed to personally profit from an accommodation scheme in the future and any changes must take effect immediately

"In addition, MSPs' salaries should be reduced to reflect the average wage of skilled workers in Scotland and all parliamentary staff should become proper paid employees with trade union rights and conditions instead of being employed directly by individual MSPs," he added.

Taxpayer picks up the property tab

TAVISH SCOTT

TAVISH Scott is the latest MSP to become embroiled in controversy over the Edinburgh accommodation allowance after it emerged earlier this week that he was charging the taxpayer nearly 1,000 a month to cover his costs for a 380,000 house in Edinburgh.

Mr Scott, the transport minister and MSP for Shetland, is claiming 979 a month to pay a mortgage and other bills on a home in the Morningside area.

Mr Scott has already made 36,000 on an Edinburgh flat he bought with the public purse and traded up to the bigger property with the help of the allowance.

The allowance is supposed to provide MSPs with accommodation for the days they stay in Edinburgh. Most have invested in small city-centre flats, but Mr Scott is the only one to have used the scheme to buy a big, family house.

Mr Scott has not broken any rules, but his use of the allowance to purchase such a big property fuelled demands for change.

JOHN HOME ROBERTSON

THE Labour MSP John Home Robertson was criticised after it was revealed last month he was claiming 7,000 a year of taxpayers' money to live in his son's Edinburgh flat.

He charges Holyrood 600 a month to rent a property bought in the name of his son Patrick days before the first elections to the Scottish Parliament in 1999.

Mr Home Robertson, the MSP for East Lothian, was able to make the claim as his home in the Borders is classed as beyond daily commuting distance.