19 November 2006

Scraping the bottom of the barrel

The Sunday Herald is making a bit of a meal of the MSPs' Edinburgh Accommodation Allowance:
THE deputy first minister is facing serious questions over a £9000-a-year allowance he receives from the taxpayer to meet interest payments on a £190,000 house he owns with his wife.
Holyrood rules state that MSPs cannot claim the controversial Edinburgh Accommodation Allowance (EAA) unless theirs is the only name on the mortgage for the property in question.
Nicol Stephen, who is also leader of the Scottish Liberal Democrats, has been claiming interest payments for a house he bought in Edinburgh in February 2002.
Both Stephen and his wife are named as debtors in the standard security agreed with mortgage providers. That means if the mortgage is not paid, both are legally responsible.
Yet the Holyrood Allowances Office says it has another document – which it has refused to identify – which lists Stephen as the only name on the loan. There is no clear legal ruling on which document constitutes the mortgage.

Yes, the Allowance is excessively generous, and the system should be changed. But a £190,000 house in Edinburgh is hardly a palace. And does it really matter whether or not Mrs Nicol's name is on the mortgage?

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