Big Don’s Westminster Windfall – an update

Article republished and updated from July 2008 in the light of ‘Profligate.’

No wonder devo-sceptic and arch-nationalistophobe Don Touhig and his Labour MP chums aren’t keen to cut the knot with Westminster. They’ve so much to lose.

Not only are they members of one of the UK’s smartest, richest and most exclusive clubs – hobnobbing with the ‘great and good’ the likes of Gordon Brown, Darling, Milliband, Straw, Balls, Blears and a whole host of other sparkling and significant characters – but it’s good for the bank balance as well.

The Daily Telegraph has revealed that the Islwyn MP and former junior Defence Minister made a windfall of almost £200,000 last year from selling a flat ‘which could possibly have been funded by his taxpayer-funded expenses.’

Robert Winnett, Deputy Political Editor of the Daily Telegraph has disclosed that the Islwyn MP ‘made the windfall profit on his Westminster flat which was bought in 1998 and sold for more than double the amount in 2007.’ Touhig sold the flat last year for £305,000. Records do not show how much he paid for the property which he is understood to have claimed as his “second home”‘, however similar flats in the same block cost less than £130,000 in 1998. This ‘second home’ status means that Touhig was eligible to claim more than £20,000 a year for the property,’ the report continued. ‘Official records show that he has received more than £120,000 since 2001 to cover the costs of a second home. It is not known if the allowances were claimed for the property although there is no evidence of Mr Touhig owning other properties in London.’

The report continued ‘It is also not known whether Mr Touhig… was liable for or paid capital-gains tax on the sale. There is no suggestion that Mr Touhig has broken any rules but if he used his allowance for the property (which he allegedly has done in a scam known as flipping) the case highlights the generosity of the system as it stands.’

Mr Touhig’s submissions to the fees office also disclose that he claimed a total of £1,325 on food at his second home when MPs were on holiday. Mr Touhig also claimed £600 for food in August/September 2005, £600 for food in August/September 2006 and £150 in September 2007.

Mr Touhig’s expenses claims under the additional costs allowance scheme show that he spent more than £2,500 on refurbishing his home in Gwent. He claimed £525 for painting and decorating the hallway, landing and stairway in November 2006 and another £715 on remedial work to the house, including waterproofing the joists.

Mr Touhig also claimed for eight leylandii bushes, with compost and bark, worth £240 in 2006. He sought another £40 for someone to plant the trees. However, the claim was turned down in the same month.

Perhaps it will come as no surprise, therefore, that the chief spokesperson for those opposing reform of the current flaky system of Parliamentary expenses – riddled with loopholes and inconsistencies – was none other than Don Touhig, who mounted ‘a vigorous defence of the current system’ in the Westminster debate on the issue. Another leading opponent of reform was fellow Labour MP (Torfaen) and Welsh Secretary (water too hot) Paul Murphy, who voted against along with a number of cabinet colleagues.

Touhig, Neil Kinnock’s replacement as MP for Islwyn served as parliamentary private secretary to Gordon Brown and was a junior minister at the Ministry of Defence until 2006. He is a noted devo-sceptic and opponent of further law-making powers for Wales an issue which, he claimed in March this year, was not important to his constituents. Pretty standard stuff for a ‘Welsh’ Labour MP, but the latest revelations might go some way to explaining why Don and his mates are very unkeen indeed to break the links with London. It’s going to cost them dear in a number of ways, proving that there’s far more to Labour’s Unionist agenda than meets the nose.

One wonders how many of those Islwyn constituents to whom law-making powers are so unimportant, are as fortunate as Don and his butties with their reserved seats on the London gravy train.

It’s wey-hey-hey all the way for top-of-the-heap Don!