In the wake of the events in Egypt, the government raised heating oil allowances for public sector workers after an earlier plan to withdraw subsidies that drain the national budget.

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Big cuts in public-sector pay and allowances have been pushed through in Ireland, Spain and Greece.

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"This risks bringing the House into further disrepute, especially if the Member concerned is then able to claim further attendance allowances from the public purse".

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Reform-minded upper-house LDP politicians like Mr Hayashi say they would be prepared to support the DPJ on issues such as the consumption tax if it scraps some of its more reckless public-spending proposals, such as universal child allowances.

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In February this year, Parliament's Committee on Standards in Public Life decided against launching an inquiry into MPs' allowances.

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The Prime Minister has asked Sir Christopher Kelly and the Committee on Standards in Public Life to look at all of the relevant issues involved in MPs' allowances as speedily as possible.

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However, the IPSA, which was was set up following a public outcry over MPs' expenses, will now be in charge of overseeing all allowances.

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"It is not just the clawing greed of painstaking claims for such minor items as tampons, barbecue sets and bathrobes, but also the egregious way some have transferred allowances from one second property to another - enabling them to refurbish homes at public expense, then sell them for profit, " Lord Carey added.

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