WELLINGTON, Feb 25 A New Zealand cabinet minister resigned on Thursday after becoming embroiled in an expenses scandal that turned on his purchase of two bottles of wine.

Housing Minister Phil Heatley apologised earlier this week and repaid about 1,000 dollars (694 US) after a newspaper revealed he had incorrectly claimed some expenses on his government credit card.

Today it was revealed he had incorrectly claimed for two bottles of wine at the conference of the governing National Party by describing them as a meal for him and his wife.

“The difference here is I have represented, signed a document, that is not accurate and that's a step too far. It tipped it over the edge for me,” Heatley told reporters.

“I have absolutely no desire to become the focus of a distraction for this government,” he said.

The government auditor will go over Heatley's expenses and it was possible Heatley could return to the cabinet if he is exonerated for what Prime Minister John Key described as an unintentional error.

“I have no reason at this stage to believe that Mr Heatley has been dishonest. However, it is important that the auditor-general investigates this issue to ensure that public money is spent appropriately,” Key said.—AFP