Pigs in the trough

Finance Secretary John Swinney, whose main home is in his North Tayside constituency, bought the four-bedroom apartment on one of the capital’s most desirable streets for £355,000 in December 2003 while SNP leader. At the time, the two-storey terraced property was the most expensive second home ever bought by an MSP. Mr Swinney, who earns £100,000 a year, used parliamentary allowances to pay the interest on his RBS mortgage, ultimately claiming more than £60,000 from the public purse. He also claimed around £10,000 to pay council tax for the Band G property on Morningside’s Hermitage Terrace. (Only former Scottish Liberal Democrat leader Tavish Scott used Holyrood expenses to maintain a more expensive second home after buying a £380,000 house in 2005.)

The sales prospectus praised its “magnificent” 23-foot drawing room, private front garden, “delightful leafy outlook” over Blackford Hill to the rear and it was sold for £430,000 was made to Registers of Scotland on August 1. After capital gains tax, Mr Swinney made a profit of around £57,000. Mr Swinney’s gain on the property is one of the largest ever recorded by an MSP.

The largest was made by fellow SNP minister Alex Neil, who made £105,505 before tax when he sold up last year, after billing taxpayers for more than £87,000 for mortgage interest, security, utilities, council tax, factoring and insurance on a two-bedroom flat over a decade. Mr Neil’s ministerial responsibilities at the time included affordable housing and homelessness. He and his wife had stumped up just £4720 for a deposit on the property.

Swinney and Neil’s claims were made under the Scottish Parliament’s discredited Edinburgh Accommodation Allowance, which paid for MSPs to stay overnight in the capital.
Some stayed in hotels or rented flats, but some bought homes, reclaimed mortgage interest, and sold at a profit. Past beneficiaries of EAA who sold for a profit include former LibDem deputy first minister Jim Wallace, who made £69,400 before tax; Tory MSP Alex Johnstone (£60,000); SNP MSP Gil Paterson (£50,000); and former SNP homelessness minister Stewart Maxwell (£34,500). After an outcry over MSPs cashing in, since May they have only been able to claim for rent or hotel costs. The change is prompting some MSPs to sell.

Announcing a Treasury-imposed £1.3 billion cut in public spending in February, the Scottish Cabinet Minister Swinney said “Hard choices must be made.” Now he has made one of those "hard"choices, making a lot of unearned money while he’s currently freezing public-sector salaries and squeezing public services.

http://www.heraldscotland.com/news/politics/swinney-makes-75k-out-of-home-sell-off-1.1117785