The meals-for-mortgages scam

Tim Naumetz, of the Ottawa Citizen, called me a day or two ago and asked if I’d heard about the extra money that MPs were going to get. I assumed he meant the $4,000-a-year increase in annual travel and accommodation expenses which is intended to help pay for commuting back and forth to Ottawa or for defraying the cost of an apartment near Parliament.

Yeah, I said. Heard about it. And I said I didn’t much like it, because the $20,000 we already get is enough. The reason I’m not happy with this increase is because I read about it in the newspaper, without being asked if I wanted it, or given an opportunity to vote on it. The geniuses who sit on the Board of Internal Economy (ironic name, isn’t it?) just passed it into being one day and now I have to defend money I didn’t ask for.

Hey, no, Naumetz said, this is the money you can spend on a mortgage instead of meals. And that’s when the little hairs on the back of my neck cringed. Could he be right? Had the Board also approved an increase in per diem meal expenses for MPs and then said that money could be used to pay a mortgage instead?

Well, here is the story. And it’s one sad day for taxpayers.

Karen Redman Apparently, according to the Liberal whip, Karen Redman, who is on the Board, MPs can now claim $75 a day for meals while they are away from home, in addition to $25 a day for accommodation if they own a house or condo in Ottawa.

“You just apply for your per diem for every day you’re in Ottawa and you receive an expense cheque,” Ms. Redman said. “You make a choice; either you’re using it for your meals or you’re applying it to your mortgage.”

This means MPs in Ottawa four days a week during the time the House of Commons sits can get more than $17,000 a year in the form of meal money to use to pay their mortgages. And it is absolutely, unquestionably and inarguably wrong.

If a person gets elected to go to Ottawa they already have access to expense money to help pay the cost of a second residence, so long as it is a rental. Of course, renting makes a lot of sense, since the average MP lasts less than five years in office before being turfed by the voters.

So if an MP decides to move to Ottawa after being elected, buy a house, truck in all the furnishings and establish a principal residence complete with spouse and kids and dog, then he or she should damn well know it is a risky action. Not only that, but by moving house, the MP is also reducing or shutting down normal living expenses in the riding he or she represents. So by taking a mortgage subsidy as Karen Redman is urging, the MP is getting the taxpayers of Canada to pay for a home loan that is totally undeserved.

After all, what the hell do we get paid $150,000 a year for? Surely we can make our own mortgage payments, especially if we get a subsidy to help pay the Ottawa rental.

So, this is wrong. It should be reversed. When I was first elected I 1988 I bought a house in Ottawa, and sold it again in 1993 (a year of real estate recession). Lost money – lots of it, and realize now what a dumb move it was. But I did not take a dime in subsidy, and didn’t even think of it. Buying was my choice, and I could just have easily rented – and received some help in doing so.

The point is this: (a) Taxpayers should not be helping an MP build real estate equity at the same time he or she is getting a wage three times higher than the national average, and (b) it is indefensible to take mortgage subsidy money when all our constituents are paying their loans with after-tax dollars, and (c) how the heck are MPs ever going to understand the need for tax relief and the pressures placed on family finances today when they are insulated from the real world?

Personally, I am very disappointed at the events of the last week and a half on Parliament Hill. The $4,000 in extra expense money should have been put to a vote, or MPs who disagree should have been given a way to opt-out. The meals-for-mortgage money scheme should never have been shoved through in a botched attempt at secrecy. If MPs want to start subsidizing their mortgages, then the taxpayers should be told about it straight up, with all the consequences that might entail.

This is not what Conservative accountability is all about.

Disclosure:
I have a batchelor condo that I rent in Ottawa close by Parliament Hill. I use all of my $20,000 in annual travel and housing money to pay for part of that rent, which means weekly travel back and forth from Halton is at my own cost. In addition, I chose a place in an expensive location, so when the expense money runs out later in the year, I will pay the bulk of the cost myself. I do not claim per diem meal expenses, and buy my own groceries. I realize I am better off financially than many MPs, because of my business and investment background.

32 comments ↓

#1 K2 on 07.04.06 at 12:56 am

So aside from the Liberal whip who else is on this super secret committee that we can thank for this?

#2 Robert McClelland on 07.04.06 at 1:03 am

Two questions.

Is there any way to find out how the members of the Board voted on this?

Do you know if anyone has ever looked into the cost effectiveness of the government buying a batch of residences (perhaps even building a highrise condo building) in Ottawa for use by out of town MPs rather than shelling out rent money every year?

#3 Don S on 07.04.06 at 7:06 am

I like your straight talk.I don’t have a problem with meal money increase,but to lay it off on a mortgage payment is disgusting.
Your comments hit the bulleye

#4 Friendly Fire on 07.04.06 at 7:24 am

Garth, I know you’re making a statement and it’s pretty much a given that this really stinks. However this isn’t the first time government has done something questionable when thinking about being accountable to the people of Canada. This is definately not a good start to a supposed Election for the fall. (Whatever truth there is to that)

#5 ALW on 07.04.06 at 8:17 am

Plus Ca Change, Plus C’est La Meme Chose.

#6 Gary V on 07.04.06 at 8:17 am

Good job Garth, thank you for respecting the peoples money. The voters will not forget on election day.

#7 Catherine on 07.04.06 at 9:45 am

But, the real question is – will Garth take the extra $4,000? or, will Garth decline this extra $4,000?

#8 Steve Heath on 07.04.06 at 9:45 am

Robert – that’s a good idea, and they should get land close to where they work so the MP’s can walk back and forth, or maybe have a shuttle/tunnel, think of all the limo money that would be saved, plus that could be the environmental policy for the CPC :)

#9 pawel on 07.04.06 at 9:47 am

Thanks for taking a taxpayers’ side. I wish there were more MP’s who think like you and more importantly act like you, but it seems the minute someone gets elected it’s as if their mindset becomes of a 3-year old child …mine …it’s mine…can I have this toy too?….sad ):

#10 Robert McClelland on 07.04.06 at 9:57 am

So aside from the Liberal whip who else is on this super secret committee that we can thank for this?

These people.

#11 Kevin on 07.04.06 at 10:19 am

Garth

Thank you for taking the taxpayers side.
It is so nice to hear an elected official NOT defending the stupid actions of there party! Someone needs to ring Mr Harpers bell! If this keeps up how are we going to tell the difference between a liberal and the CPC!!

#12 Allan Stone on 07.04.06 at 11:15 am

If only there were more politicians today with your integrity Garth…Thanks for bringing this issue to light and offering your insights.

#13 K2 on 07.04.06 at 11:52 am

Thanks for the link Robert.

Maybe you should take a look at who is on that committee, Kevin, before immediately assuming it’s the CPC who is to blame here… With the opposition parties’ members outnumbering the CPC on this committee there’s more than enough mud to sling around before hitting a Conservative.

And no, I’m not saying the CPC members of the committee shouldn’t be smacked upside the head for this along with the rest of them… but I do think you should take the time to get the facts straight before you start making accusations.

#14 Note on 07.04.06 at 1:08 pm

Garth, just a little note:

$150,000 a year isn’t three times the average Canadian income. It is three times the average Canadian HOUSEHOLD income.

#15 John G on 07.04.06 at 2:53 pm

Good job Garth…kudos for the transparency……seems like a great opportunity for the CPC to raise the issue with Canadians….the optics would be great with an election not far off ! This is the type of feeding from the trough we have come to expect and dispise from the Liberals.

It also speaks to the real issue of the quality of many MP’s…..who view politcs as the only avenue to a good salary, great pension, all for working 4-5 months a year….that is who is attracted to politics not the brightest and best who have already made their money…

#16 John G on 07.04.06 at 2:59 pm

BTW……Garth maybe you could address this yourself in the media with the same zeal you had for Emerson etc etc…now that is TRULY why you should be in Ottawa!

#17 Friendly Fire on 07.04.06 at 3:10 pm

Catherine raises a good point. Garth are you going to take the $4000 or dismiss it? If you’re going to take it, you might as well flush this latest post down the toilet.

#18 Catherine on 07.04.06 at 4:37 pm

Thanks Robert, I am surprised that Libby Davis voted for this raise. Me thinks that Libby talks out of both sides of her mouth!

Still Garth is not quite correct – the MPs don’t make Ottawa their primary residence even after buying real estate. I believe the rules are that MPs still need to maintain a primary residence in the riding.

BTW: Garth hasn’t answer whether he’s keeping or declining the $4000 raise?

Sorry Catherine – I did not know your personage demanded an instant response. Of course I have no plans to take money I did not ask for.

And you are wrong about MPs living in Ottawa in principal residences. All they require in the riding is an address. — Garth

#19 Marc on 07.04.06 at 5:52 pm

Hi Garth, All an MP requires is an address. Does this mean that a post office box counts? That would be amazing if the MP didn’t even live in the riding.

#20 Catherine on 07.04.06 at 5:59 pm

Garth, thanks for responding, but your response didn’t quite answer my question.

By your response “Of course I have no plans to take money I did not ask for.” , did you mean that you will not expense more than the old $20,000 allowance limit?

Grow up Catherine. I said I would not take it. — Garth

#21 Paul R on 07.04.06 at 6:35 pm

Shame on the committee members that voted for this. They give all MPs a bad name. Its bad enough they have generous salaries, expense accounts and a pension that cannot be matched by any other Canadian. They are a bunch of selfish greedy pigs that continue to gobble at the trough serving their wants (not needs) first instead of putting priority with taxpayers first. I am very glad Mr. Turner has chosen the ethical stand on this. This should be explosive with the political media.

#22 Glen on 07.04.06 at 6:43 pm

SICK SICK SICK.

I am actually sickened by this. I wonder how the average income earner( 40,000 I think) in Canada can effectievley voice their opposition?

Can I email one of the clowns who voted this one through?

Thanks Garth!

#23 Catherine on 07.04.06 at 7:21 pm

Garth, why I asked you that clarifying question is that we often hear from our MPs and their spin meisters, fuzzy type “answers” which that can be interrupted many different ways. I’m sure you are very familiar with these type of “answers”, given that you were part of the media at one point.

As a taxpayer, who funds these perks, I do expect direct clear answers. Don’t get me wrong, as a reasonable person, if there is a real requirement for increases, I am quite willing to accept them. BUT, I do not want to be snowed and taken as a chump! So your belittling doesn’t bother me in the least!

#24 Dan Baril on 07.05.06 at 10:27 am

Catherine, with all due respect, your claim to “reasonability” is called into question.

At last count there were 308 MPs with only 1 taking the kind of very public stance against this issue the way Garth is doing, and you are finding fault by splitting hairs with the [only] one who is actually taking a stand against this issue but seemingly not with the other 307 who appear quite content to remain silent.

Tell us again what part of your tirade is “reasonable.”

I understand yours and other Canadian’s warranted and general level of political cynicism, but for goodness sake at least aim it in the right direction.

#25 Kevin on 07.05.06 at 4:44 pm

K2
Committees make alot of decisions about alot of things, regardless of who is governing. But the decisions that ARE made reflect on the Government of the day. It is the responsibility of the government or opposition to bring those things to the floor of the commons. That has not been done! No one but Garth said “BOO” !

#26 Catherine on 07.05.06 at 5:41 pm

Dan, huh? a tirade?

I’m not splitting hairs….. You must recall Preston’s stance on Stornaway and MP pensions… This man was very public about not accepting these “perks”. Yet, months later, he used his slight of tongue to get out of very public stance. A reasonable person would have accepted that MPs should get some pension enumeration…. but, probably not the 4 to 1 formula they currently receive.

So if this committee has a solid case in increasing the allowance from 20,000 to 24,000, then, I’m willing to at least listen. BTW, comparing an average salary of the working class (40,000) is like comparing apples to oranges. There are alot of people in Canada earning 60,000 or more building cars, plumbing, wiring, etc. A good MP, in my opinion, is worth the 150,000 they earn! The good ones do put in more than the 37.5 hour a week most of us put in.

#27 Glen on 07.05.06 at 7:29 pm

Catherine,

Yikes. Apples to oranges? Are you suggesting that someone making 40,000 per year does not work as hard?

Be careful.

And I do figure an honest MP is well worth a good salary. But truth is, most canadians would trust a used car salesman over a politician.

What is that telling you?

#28 Judy on 07.05.06 at 10:16 pm

Dan, I understand Catherine’s point. It is fine for an M.P. to publicly denounce an automatic increase in perks. But will that same M.P. return the perk or refuse to apply for the perk via receipts even if he/she exceeds their previous allowance? B.T.W:
Can someone tell me what happens to all these Ottawa ‘rentals’ during the 3 months when M.P.’s are NOT in Ottawa? ARe they subletted? Are they left empty?

Judy, what is your point? I do not take per diems. I do not have a house in Ottawa that taxpayers finance. I said I would stick with the rental allowance I was given when elected. I have not filed a claim for anything that went down my throat. — Garth

#29 Tracy on 07.09.06 at 1:01 pm

I caught your comments today on the CBC news and was appalled at yet another increase in MP’s salaries/perks despite the financial issues that a large number of Canadians face today. I have no issue with MP’s being paid for doing their jobs or having some recompense for expenses that most of us do not face (ie: alternative housing, travel etc). However, giving out extra money in the amount of $4000 for accomodations yearly got my temper up and then to find out that MPs can use their meal allowance to pay for their mortgages simply disgusted me.
I have a family that we are trying to raise and we get taxed half to death on the little that we do earn. We are not lazy people nor are we on welfare, we are awaiting surgery so my spouse can return to work which has strained our finances considerably since benefits have run out. I work 3 casual jobs trying to pay the bills and am failing miserably since there are no jobs available in the area we live in (rural Saskatchewan). Hearing that MPs (our representatives) get this kind of “helping handout” really makes me angry. Where is the Canadian government or programs to help those whose benefits hve run out and are still awaiting surgery? Where is a program that will help us to get a new water well drilled on our property so we have access to proper hygiene and drinking water? In Saskatchewan, we could go into a government subsidized program to help us put new siding on our mobile home since the wind took the old stuff off, but nothing to help us drill a new well so that we can bathe or have fresh water to drink. Where are the programs to keep young people in the communities that they were raised instead of having them migrate elswhere for more pay? The incentives to stay and work in this province stink and people are fed up. An $17 000/year to help fund mortgages for MPs or even for meals is ridiculous and unwarranted! Many people (rural areas)can raise families off of the travel and accomodation expenses that MPs are paid and the government has the audacity to increase it more? Every year that passes, Canada becomes more and more for a select group of people and alienates the masses more than ever. I am proud to be Canadian, but I am saddened at the direction the federal government feels the need to aim for.
I applaud you for bringing this issue to the forefront of discussion. I wish you the best of luck in both your family life and your political career and encourage you to keep on with the integrity you’ve displayed. The common masses are where the majority of interest should lay and we definately are in need of a strong voice.

#30 Mike on 07.09.06 at 2:09 pm

Well all I can say is that David Anderson (the MP in my riding Cypress Hills/Grasslands)Has lost my vote in any upcoming elections. What I see here is an alternative party is needed (such as The Rhino’s in days of old) to show our disgust of our federal government.
Good luck in your riding (future elections as well)and I’m very pleased to see an MP trying to actually serve the public. After all, we hired you (by voting) to be one of our public servants.
Now if more politicians looked at it as a job that they can be fired from we may be in business.

#31 Canadian Capitalist » Feeding Your MP’s Mortgage on 07.10.06 at 12:33 am

[...] Related Links: Hats off to Tory MP Garth Turner for highlighting this issue on his blog (here, here and here). Outrage from the Canadian Taxpayers Federation.
[...]

#32 Stroover on 07.10.06 at 10:27 pm

Maybe this will get Canadians to wake-up and realize we live in a totalitarianist government disguised as a democracy! Maybe we shouldn’t send our troops to places like Afghanistan to whipe out this kind of government: we have it right HERE! Maybe what this country needs is a good ‘ol coup d’etat!