Labour MPs suspended in cash-for-access scandal

LONDON - Three former Cabinet ministers were suspended from the Labour Party yesterday over accusations they were ready to use their position to influence Government policy in return for money.

Stephen Byers, Patricia Hewitt and Geoff Hoon had the parliamentary whip removed from them by party chiefs after being caught on camera by an undercover television investigation into lobbying by politicians.

The "cash for access" storm, which has overshadowed Labour's election preparations, took a dramatic turn after the programme was broadcast yesterday.

The Labour Chief Whip, Nick Brown, and the party's general secretary, Ray Collins, ordered their suspension pending a full investigation into the claims. Margaret Moran, the MP for Luton South, who featured in the programme, was also suspended by the party.

Byers, a former Transport Secretary, was filmed boasting that he had influenced government policy affecting three departments.

He described himself as a "sort of a cab for hire" at rates of up to £5000 ($10,600) a day and claimed he had reached secret deals with Lord Adonis, the Transport Secretary, over a rail franchise contract, and with Lord Mandelson, the Business Secretary, over food labelling regulation.

He later withdrew the claims, saying he had "exaggerated" his influence. Hewitt and Hoon suggested they would charge £3000 a day for their services.

Hewitt, a former Health Secretary, gave five ways of meeting a minister, while Hoon said he wanted to use his knowledge and contacts in a way that "makes money".

Both have denied any wrongdoing and stressed they were discussing work that might arise after they stepped down as MPs.

The disclosures in Channel 4's Dispatches programme have been a severe setback to Labour hopes of building momentum ahead of the election due in just over six weeks' time.

Backbench MPs demanded action against the former ministers at yesterday's weekly meeting of the Parliamentary Labour Party.

The Prime Minister, Gordon Brown and senior colleagues denied there had been any "impropriety" by Mandelson or Adonis.

Byers referred himself to the Parliamentary Standards Commissioner, John Lyon, and said he was confident he would be cleared.

But the Prime Minister rejected a demand from David Cameron, the Conservative leader, for an investigation by Cabinet Secretary Sir Gus O'Donnell into Byers' claim he influenced policy.

His spokesman said he had accepted assurances from the permanent secretaries of three departments that there had been "no improper influence" on Government decisions.

Cameron said: "These ministers, Hewitt and Byers, were claiming they changed government policy, they got people appointed, they cost the taxpayer money. They are making these claims and that goes to the heart of the issue of the integrity of the Government."

Eric Pickles, the Tory chairman, added: "This looks increasingly like a cover-up at the heart of government."

Adonis told the Lords yesterday he had a "brief conversation" with Byers over the rail franchise, but said there was "no truth whatsoever" in suggestions that he changed his policy as a result.

Mandelson said he had "no recollection" of speaking to Byers about food labelling.

- INDEPENDENT