Bronwyn Bishop resigns as Speaker, Tony Abbott announces

Bronwyn Bishop tendered her resignation as Speaker of the House to governor general Peter Cosgrove, following weeks of expenses scandals that had threatened to derail the government.

The prime minister, Tony Abbott, made the announcement on Sunday afternoon.

“Regrettably, not withstanding rules that this government put in place ... there are still too many situations where members of parliament can do things that are inside entitlement, but outside public expectations,” he told reporters.

Abbott was keen to take the focus off Bishop, saying the system was broken.

“I believe that in the vast majority of cases, for the vast majority of the time, that is exactly what the public has got. They have got people in the parliament who are serving them to the best of their ability,” the prime minister said.

“Nevertheless, it has become apparent over the last few weeks, particularly in recent days, that the system does need fundamental reform. That’s exactly what there will be under this government because the public deserves it.”

He announced a whole-scale review of the entitlements system – to be led by former head of the Department of Finance, David Tune, and the head of the Remuneration Tribunal, John Conde – which will aim to give “the public confidence”.

Abbott said it will not be a “quickie” review, but rather a “root and branch” audit of the system in its entirety.

The review will report back to the government in the first half of 2016.

Bishop issued a statement on Sunday explaining her decision.

“I have not taken this decision lightly, however it is because of my love and respect for the institution of the parliament and the Australian people that I have resigned as Speaker,” she said.

“I look forward to continuing to serve the people of Mackellar as their local member, the job that has always been my first responsibly despite other positions I have held within the parliament.”

The opposition leader, Bill Shorten, who had been calling on Bishop to resign for days, was unconvinced by Sunday’s announcement.

“The resignation of Mrs Bishop from the position of Speaker, like her apology, was overdue and unrepentant,” he said.

“Unfortunately Tony Abbott still won’t accept that Bronwyn Bishop has done anything wrong. Mr Abbott has blamed the system, but it was Mrs Bishop’s addiction to privilege that was the real culprit. Mrs Bishop hasn’t resigned because it was the right thing to do, it was because she and Mr Abbott realised they had no other choice.”

He said Labor “is up for a review of the entitlements system to ensure it is consistent with community expectations”.

Bishop had been under pressure since July, when it emerged that she used more than $5,000 of public money to charter a helicopter from Melbourne to Geelong to attend a Liberal party fundraiser.

On Thursday Bishop apologised for misusing public money to charter the helicopter, but she refused to resign.

“I want to apologise to the Australian people for my error of judgment and to say sorry,” Bishop said. “You know, that helicopter, yes, I was short of time. But it is no excuse, and it was an error of judgment. And really, as I said, I want to apologise to the Australian people, becauseI feel I’ve let them down.”

Bishop dug in on the use of public money to attend the weddings of two colleagues, Sophie Mirabella and Teresa Gambaro, insisting they were “within the guidelines”, but offered to repay the money because she acknowledged it was not “a good look”.

She said she had official committee business in the form of off-the-record meetings with unnamed sources around the time of each of the weddings.

Guardian Australia revealed 15 other instances in which Bishop claimed flights for her work as chair of the standing committee on families and human services to places and times in which no public hearings are listed for that committee.

Independent MP Andrew Wilkie, who had been planning to move a no-confidence motion against Bishop, on Sunday welcomed her resignation.

“Watching this saga unfold was worse than getting your wisdom teeth out,” he said.

He continued to push for a probe into Bishop’s use of entitlements.

“Bronwyn Bishop’s resignation is overdue and must not be the end of action taken against her in particular,” Wilkie said.

“The member for Mackellar’s misuse of entitlements is of remarkable proportions and must be investigated by the Australian federal police to find out if criminal fraud has occurred.”