14 Jan, 2008
York - 14-Jan-2008
Prime Minister Gordon Brown has pledged his support for Work and
Pensions Secretary Peter Hain over the latest donar scandal but
says this may not be enough to save Hain's job.
Brown said he would not sack Hain over his failure to declare
£103,000 of donations to his campaign for the Labour deputy
leadership and said he was "doing a great job".
But Brown hinted that the decision was ultimately in the hands of
the Electoral Commission which is investigating Hain's failure
to register the donations.
The Conservatives have also come under fire as it emerged that
Shadow Chancellor George Osborne accepted £487,000 in
donations last year without full declarations.
Tory leader David Cameron gave his backing to Osborne saying the
situation was "completely different" to Hain's
failure to declare because Osborne had sought advice on whether he
had to declare these donations and had been led to believe he did
Last week it emerged that Hain received a £5,000 donation
from Welsh financial services company Picture Financial which
caused a storm of criticism from the opposition because Hain
endorses the company which was accused of being a sub-prime lender.
Conservative MP Bob Spink asked Brown if it was acceptable for
"the secretary of state with responsibility for the poor to
endorse a sub-prime lender and then accept a £5,000 donation
from that lender".
Hain is quoted on Picture Financial's website saying the
company is "exactly the kind of young energetic company we
Picture Financial says it is not a sub-prime lender but a credit
card debt consolidator.
Reports suggest Hain's own constituency Neath Labour Party is
holding an emergency executive meeting on Wednesday to discuss the