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Crime PaysAs did Lloyd George, Blair secured his political objectives via patronage. Charles I lost his head following his mischievous support of Lord Buckingham – I wonder if we are also witnessing the beginning of the end of ‘UK government’ which was.Expensive route to the ermine list Police check 'loans for peerages' paper trail See also (Filed: 27/03/2006)
Financial backers who have been nominated for peerages by Tony Blair after acts of generosity to the Labour Party have shelled out an average of £2.6 million. Research conducted by the Bow Group, a Right-wing think-tank, suggests other contributions have earned knighthoods for £748,000, CBEs for £611,000 and OBE's for £552,500. The analysis was conducted among 40 donors to Labour who have given at least £50,000 since 2001. It includes the recent loans that have caused the "cash for peerages" row. The practice of selling honours was made illegal in 1925 after they were touted by Lloyd George's "honours broker" Maundy Gregory. Gregory was jailed after the Honours (Preventions of Abuses) Act of 1925 came into effect to demonstrate that such abuse of patronage would not be tolerated. The maximum penalty for breaking the law is two years in jail. Scotland Yard is demanding to see confidential Downing Street e-mails and letters as part of its investigation into the Labour "loans for peerages" scandal. A police inquiry headed by John Yates, a deputy assistant commissioner, is homing in on the No 10 "paper and e-mail trail" to establish whether seats in the House of Lords may have been offered in return for financial support. Two senior civil servants in the Cabinet Office have been served with letters asking them to give all assistance possible by submitting relevant information. Details of the police involvement emerged as John Prescott rebutted allegations that he had backed planning decisions in favour of two of Labour's biggest donors. The Deputy Prime Minister told BBC1's Politics Show yesterday that he did not even know the two businessmen - Sir David Garrard and Andrew Rosenfeld - who won planning approvals for a City of London skyscraper in 2003 and a £600 million shopping mall in Croydon last year. Sir David was recommended for a peerage by Mr Blair after making a £2.3 million loan to Labour last year. But after the nomination was blocked by an appointments watchdog he has since asked the Prime Minister to remove his name from the list of nominees. Mr Rosenfeld made a loan of £1 million to Labour last year but has not been recommended for a seat in the Lords. Mr Prescott, who is standing in for Mr Blair while he is abroad, confirmed that he had received the planning applications, but said he felt the decisions should be made locally. "I passed it over to Croydon and City of London Corporation," he said. "They made the decision, not me." Asked if he had ever met Sir David or Mr Rosenfeld, he replied: "I don't think I have ever met them. I am not a great one for circulating among businessmen. I just do my damn job and therefore I resent it when these implications are made. My reputation is important to me." He went on: "I have not made any money from politics, for God's sake. But I am here doing what I can best in public service. It is understood that the demands for documentation issued by Scotland Yard will be extended to the Labour Party and, possibly, to the Tories who are under growing pressure to reveal the full list of donors who bankrolled the party before the last election. Lord Levy, Mr Blair's chief fundraiser, who is already facing a televised appearance before the House of Commons Public Administration committee over the loans affair, is also likely to be asked to give evidence by Scotland Yard. Others who could be questioned by officers include Matt Carter, the Labour General Secretary who managed the flow of money into party coffers before the election. MPs on the Public Administration committee are expected to meet tonight to consider a request from Scotland Yard to postpone a hearing, scheduled for tomorrow with Chai Patel, the head of Priory health care group. Mr Patel is one of four businessmen who loaned money to Labour before last May's election and was offered peerages by Mr Blair soon after. Their nominations have all been blocked by the independent House of Lords Appointments Commission which has to satisfy itself that there is no link between financial help given to political parties and subsequent offers of peerages. Scotland Yard is understood to believe that evidence given in public by lenders such as Mr Patel may hinder its own inquiry, which is expected to last several months, into the legality of Labour's funding and patronage system. Toby
Helm
See also Reforming the Lords Lord Levy - schmoozing Labour into trouble Sleaze and political corruption Arthur Maundy Gregory Berlusconi & Blair Bankrolling New Labour David Mills |
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