Prime Minister John Key has accepted the resignation of Pansy Wong as a minister.

In a press release just out Mr Key said:

“I was informed today that Mrs Wong had used her Parliamentary travel entitlement to pay for parts of her husband’s travel in China in late 2008, where he conducted private business,” Mr Key says.

Mr Key said he was extremely disappointed to “lose a Minister who has been an effective and hard-working representative for the ethnic community and New Zealand”.

However, he said Ms Wong had taken the appropriate step by resigning.

“It is important that MPs and ministers treat taxpayer money with the utmost respect” he said.

Mr Key told reporters in Japan Ms Wong may have to pay back thousands of dollars that may have been misspent as part of her ministerial travel perk.

"On the face of it, this is a breach of travel entitlement rules and Mrs Wong has been unable to assure me it is a one-off breach."

The Speaker Of The House has commissioned an investigation by Parliamentary Service into the Ms Wong’s travel claims.

It was revealed this morning that Ms Wong used her travel perk to accompany her husband, Sammy, on a failed business trip.

Ms Wong has released a statement saying she had not lived up to self-imposed high standards.

“It is beyond my wildest dreams that a baby girl born in Shanghai, China, grew up in a Hong Kong apartment where eight families shared a single kitchen and bathroom to be New Zealand’s first List MP, first constituent MP of Botany and first Cabinet Minister of Chinese and Asian ethnicity.

“That dream is not mine alone and it comes with expectation, responsibility and hope. I have tried every single day to keep that dream alive and nothing should happen to dash that dream.

“That dream can only be kept alive by living up to the high standard set by the Prime Minister and myself. Therefore I have given my resignation as a Cabinet Minister to the Prime Minister.”

Documents show Ms Wong signed as a witness to her husband’s deal between Pacific Hovercraft NZ and China-based Lianyungang Supreme Hovercraft. The agreement is also signed by Ms Wong’s husband, Sammy, who is named as a co-director of Lianyungang Supreme Hovercraft.

The business deal collapsed with Lianyungang Supreme Hovercraft being pursued for $800,000 in royalties.

Ms Wong has admitted using the travel perk to pay for her tickets.

The perk, which gives MPs heavily discounted air fares, is only for private use.

Last night Ms Wong’s office said the trip to China was a holiday.

Prime Minister John Key will make a statement about Ms Wong’s decision from Japan, where he is attending the Apec summit.

3 News political editor Duncan Garner is in Japan with Mr Key and says the Prime Minister will stand down Ms Wong shortly. He is currently speaking to her on the phone.

Ms Wong is the current Minister for Ethnic Affairs and Minister of Women’s Affairs.

Georgina te Heuheu will be the Acting Minister for the Ethnic Affairs and Women’s Affairs portfolios.

(Source 3 News)