Expense claims from NDP MPs who have yet to repay millions in alleged improper satellite office spending will be denied by House of Commons administration, CTV News has learned.

Sources say that following a failed attempt by the party to negotiate payment, the House will begin to collect funds from NDP MPs July 1. Administrators will collect the money by refusing to cover future expense claims.

The NDP’s offer -- 10 per cent of what was owed -- was too low, so it was rejected, sources say.

The House will start collecting the funds from individual MPs, who were ordered to repay a combined $2.75 million in taxpayer money following a ruling by the Board of Internal Economy.

Earlier this year, the all-party committee found that the MPs broke parliamentary rules by using public funds to pay for partisan mailings and satellite party office staffers.

All expenses claimed by any of the 68 MPs will now be denied, including kilometre charges, per diems, accommodations, hospitality and travel.

For those MPs not seeking re-election, or those who are not re-elected, the House will collect from their severance pay, sources tell CTV.

“It’s important the NDP pay back the millions of dollars they owe taxpayers,” Conservative MP Paul Calandra said during question period on Tuesday. “Do it now and avoid the sad spectacle of court.”

But the New Democrats have refused, and taken the ruling to federal court.

The court case has been in limbo while negotiations are underway, but now the talks have broken down.

CTV News has been told the House of Commons lawyer will try to get the case thrown out, which would force the NDP to settle up.

With a report by CTV’s Ottawa Deputy Bureau Chief Laurie Graham