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16/03/2006
Blair denies link between cash and peerages
Prime Minister Tony Blair has denied any links between nominations for peerages and cash loans made to the Labour party.
Speaking after it emerged that three men who had given large loans to the Labour party had been nominated for peerages, Mr Blair admitted that he had known that the men had given money to the party, but insisted that he was "completely satisfied" that no rules had been broken.
Speaking at his monthly press conference, the Prime Minister said: "It shouldn't be one in exchange for the other and it wasn't."
Mr Blair said that he took "full responsibility" for the situation and said that he was considering introducing changes to the honours system which would take "the politics out".
These changes would include the removal of the Prime Minister's right to nominate people for honours, passing the role to the Cabinet Secretary instead.
However, Mr Blair said that the changes needed to apply to everyone, not just the Labour party.
The Prime Minister's comments came day after Labour treasurer Jack Dromey launched an internal investigation into the loans, after saying that he had been "kept in the dark" about them.
Mr Blair said that Mr Dromey should have known about the loans.
Earlier today, constitutional affairs minister Harriet Harman asked to be relieved of her duties of overseeing electoral reform in order to avoid any conflict of interest.
The three Labour party donors involved in the row - property tycoon Sir David Garrard, Priory clinic owner Chai Patel and stockbroker Barry Townsley have all now requested that their names be removed from the honours shortlist.
(KMcA/GB)
Speaking after it emerged that three men who had given large loans to the Labour party had been nominated for peerages, Mr Blair admitted that he had known that the men had given money to the party, but insisted that he was "completely satisfied" that no rules had been broken.
Speaking at his monthly press conference, the Prime Minister said: "It shouldn't be one in exchange for the other and it wasn't."
Mr Blair said that he took "full responsibility" for the situation and said that he was considering introducing changes to the honours system which would take "the politics out".
These changes would include the removal of the Prime Minister's right to nominate people for honours, passing the role to the Cabinet Secretary instead.
However, Mr Blair said that the changes needed to apply to everyone, not just the Labour party.
The Prime Minister's comments came day after Labour treasurer Jack Dromey launched an internal investigation into the loans, after saying that he had been "kept in the dark" about them.
Mr Blair said that Mr Dromey should have known about the loans.
Earlier today, constitutional affairs minister Harriet Harman asked to be relieved of her duties of overseeing electoral reform in order to avoid any conflict of interest.
The three Labour party donors involved in the row - property tycoon Sir David Garrard, Priory clinic owner Chai Patel and stockbroker Barry Townsley have all now requested that their names be removed from the honours shortlist.
(KMcA/GB)
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