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Labour Party Donations. 

 

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The £1 million donation from Bernie Ecclestone (16th November 1997). [top]
Mr Blair said he had been "hurt and upset" by suggestions that the Government had behaved improperly or had been influenced to water down its proposed ban on tobacco sponsorship because of the £1 million given to Labour by Bernie Ecclestone, the Formula One chief.

However, he accepted that Labour had mishandled the row, and apologised for the way information had "dribbled out" which made it look as if the Government had something to hide. "For that I take full responsibility and I apologise for that," he said. "I suppose what I would say is that perhaps I didn't focus on this and the seriousness of it in the way that I should, as I was focusing on other issues.

Mr Ecclestone met Mr Blair four weeks ago to lobby against a tobacco sponsorship ban with Max Mosley, president of the Federation International de l'Automobile, the sport's governing body.

At the weekend Labour acknowledged that Mr Mosley was a member of the Thousand Club of supporters who contribute at least £1,000 a year to party funds, but refused to confirm whether Mr Ecclestone was also a donor.

Earlier yesterday, Gordon Brown, the Chancellor, maintained that he did not know whether Mr Ecclestone had contributed to the party, while officials insisted that Labour would stick to its rules under which major donors were identified only in the annual accounts. Within hours, however, it was announced that Mr Ecclestone was a donor, though it was stressed that he made one payment, in January.

See Policy U-turns for more information on this scandal.

This is the timetable of Labour's worst week in 1997(16th November 1997): [top]

Saturday Nov 8: Tony Blair under pressure to disclose if Labour had taken money from Bernie Ecclestone after The Telegraph claimed that the Formula One chief had switched his allegiance from the Tories.

Sunday 9: Labour officials confirm that Max Mosley, head of FIA, the sports governing body, is a member of the Thousand Club who has given at least £1,000 to party funds. Any suggestion of a link between Government decisions and contributions to Labour funds is "utterly unacceptable".

Monday 10, 8am Gordon Brown, the Chancellor, on BBC Radio, refuses to confirm that Mr Ecclestone is a donor.

Noon: Tom Sawyer, Labour's General Secretary, receives response from Sir Patrick Neill, chairman of the committee on standards in public life, to his letter seeking advice on the Ecclestone donation.

5pm: Senior Labour spokesman briefs journalists that Mr Ecclestone gave more than £5,000 before the election and Sir Patrick recommended returning it.

Midnight: Newspaper claims that the donation was as much as £1.5 million dismissed as "wild speculation" by officials.

Tuesday 11, 4pm: The Prime Minister's office confirms that the donation in January was worth £1 million. Officials admit that Mr Blair knew about it before his meeting with Mr Ecclestone and Mr Mosley, but insist that it had no effect on the decision to exempt Formula One.

Wednesday 12, 3pm: During a gruelling Commons Question Time Mr Blair announces that the Neill committee will undertake a review of party financing. Maintains that no decision was taken at the Oct 16 meeting with the Formula One representatives.

4pm: Prime Minister's office discloses that proposal to exempt Formula One came from Frank Dobson, Health Secretary, two days before the Downing Street meeting.

10pm: Labour forced to admit that Mr Ecclestone had offered a second donation since the general election and wanted clearance for it from Sir Patrick.

Thursday 13, 4pm: Prime Minister's office admits that Mr Blair knew that Labour officials were negotiating with Mr Ecclestone over further donations when he met him at No 10.

6pm: Labour publishes exchange of letters between Sir Patrick and Mr Sawyer which make clear that the former's advice was primarily sought on the second donation, though Sir Patrick recommended that the first be returned as well.

10pm: Mr Ecclestone gave interview to the Mirror, denying that he offered a second donation, and wrote to The Times saying he would ask Sir Patrick to reverse his advice.

Friday 14: Labour officials acknowledge that they initiated post-election contacts with Mr Ecclestone's advisers over a further donation.

 

Donations for Peerage? (31st August 1998). [top]

Tony Blair was embroiled in a fresh row over cronyism yesterday after Labour acknowledged that many of its key financial supporters had benefited from the party's year in Government.

An official list of almost 100 donors who gave more than £5,000 to the party in the general election year included a substantial proportion who had received peerages, ministerial positions or an advisory role in Whitehall.

The list containing several of Labour's prominent financial backers including Melvyn Bragg, the arts broadcaster, Waheed Alli, the Asian television entrepreneur, and Chris Haskins, the chairman of Northern Foods all becoming life peers. The biggest individual pledge is thought to have come from Lord Sainsbury of Turville, who was appointed industry minister in the reshuffle earlier this year and is said to have invested a total of £3 million of his personal fortune in the party.  

The full list of 27 new life peers approved by the Queen was less than half the size of last year's batch, amid signs that the Prime Minister is increasingly sensitive to the Tory charge of flooding the Upper House with his "cronies".

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