ACT leader Richard Prebble says the government must adopt the review committee's report on MPs' pay and allowances.

"I successfully moved at the Parliamentary Services Commission meeting today that the report be referred to the Prime Minister and Cabinet," Mr Prebble said.

"For the report's recommendations to be adopted, the government will have to introduce legislation into Parliament urgently because the recommendations require a law change.

"I said to the MPs on the Commission that there is no way the government and Parliament can refuse to adopt these recommendations.

"As the ACT Party and Rodney Hide have been pointing out for five years, the way MPs are paid allowances is not defensible. Now, we have an Auditor-General's opinion that the non-taxable allowances are probably not lawful.

"Although I haven't studied the report in depth, I'm confident the government will be forced to act.

"I also say there's no doubt that these changes are the result of representations by ACT over the past five years, and Rodney Hide in particular.

"The changes show what a plain-speaking, fearless party in Parliament can achieve. No one believes the two old parties would have changed the cosy arrangements," Mr Prebble said.

ENDS

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