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PM’s Presser – Phil’s Folly

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Prime Minister John Key has accepted Housing and Fisheries Minister Phil Heatley’s resignation but says he has not lost confidence in him.

Key responded to Heatley’s shock resignation today, saying the Auditor-General had been informed of a further error in Heatley’s declaration of ministerial expenses and would be opening an investigation.

The minister made a public apology earlier this week for around $1200 in illegitimate expense claims, including fast food, luggage and a family trip to the movies.

But Heatley said this morning he had also used his ministerial credit card to buy two bottles of wine at last year’s National party conference.

The expense had been itemised as “minister and spouse: dinner” but no food had been bought.

Heatley said he had unintentionally signed a false statement, but “rather than arguing semantics” would step down from his portfolios.

Key said Heatley had incorrectly believed the credit card could be used for any food or beverages outside of Wellington or his electorate.

Heatley’s bookkeeping had been “untidy and careless” but Key said he felt Heatley might be being too harsh on himself.

“This is a minister that operated wrongfully with the wrong impression – in other words, he didn’t understand the rules properly.

Key said he had not lost confidence in Heatley and would consider reinstating him as a minister if the Auditor-General’s review cleared him.

Construction Minister Maurice Williamson would take on Heatley’s Housing portfolio, while Agriculture Minister David Carter would take on Fisheries.

The Auditor-General’s review would be completed within the next few weeks.

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