FEDERAL MPs and public servants could be stripped of their frequent flyer points if Finance Minister Lindsay Tanner has his way and curbs access to the taxpayer-funded perks.

But Mr Tanner, who heads the Rudd Government's budget razor gang, yesterday stopped short of ordering politicians to go to the back of the plane. Speaking in Canberra, Mr Tanner said the Government was busy reforming the way MPs and staff travelled and would soon open up tenders for air travel, car hire and accommodation. He said he hoped to save at least $26 million in the first year.

``We don't use online buying enough, we do accommodation deals at the wrong time, we don't use cheaper restricted airfares enough, and we don't exercise our buying power effectively,'' he said. Mr Tanner said he also intended to pursue frequent flyer points for MPs and public servants.

``The taxpayer indirectly pays the cost, but the individual gets a benefit that is often not used for work purposes,'' he said. ``Some agencies have done deals with airlines that exclude frequent flyer points. The airlines don't like it because they have to separate government points from private points for each individual. I think they should be excluded across the board.''

Last year from January to June 2008, Senator Russell Trood was the only Queenslander to redeem $807.60 worth of frequent flyer points for businessrelated travel during a time when there was a standing order to use points for work trips. Victorian MP Bill Shorten redeemed $9064 worth of travel, and Senator John Faulkner followed his own orders and saved $2023.

Federal MPs have unlimited business class air travel.

Asked if MPs should fly economy especially during the financial crunch, Mr Tanner said the Government had taken significant steps to reduce government spending.

``I think there is always going to be scope for rethinking these things and reexamining them, but in a proper way,'' he said.

Independent MP for Kennedy, Bob Katter -- who commutes eight hours from Charters Towers to Canberra via Townsville and Brisbane for parliamentary sittings -- said he had been flying economy for 33 years and estimated he had saved taxpayers about $700,000 a year.

``We're supposed to be one with Australians and then you want to go and sit in first class.''

The comments came as the Westpac-Melbourne Institute Index of Consumer Sentiment decreased slightly by 0.2 per cent in March from 85.8 in February.

Source: Courier Mail