Cronyism storm over South Bank

A prominent supporter of the Government will today be appointed chairman of the South Bank - sparking a new row about New Labour cronyism.

Multi-millionaire media mogul Lord Hollick, 56, will be put in charge of kick-starting long-delayed plans to redevelop the dilapidated riverside arts complex.

The Conservatives yesterday attacked Labour's "old boy's network" for securing the job to one of its longest-standing allies. Senior Tory Michael Portillo and the former Tate chairman Dennis Stevenson are believed to have been candidates for the job who were eliminated at an earlier stage.

Lord Hollick's wife, Sue, is chair of the London Arts Board, the agency responsible for distributing funding to the capital's arts community, and critics have claimed this will pose a conflict of interest once he takes over at the South Bank. However, the centre is funded centrally, and does not receive any cash from the LA.

Shadow Culture Secretary Tim Yeo said Lord Hollick's Labour connections make his appointment indicative of the arrogance at the heart of government. He said: "There is no longer any regard for the proprieties about what conflict of interest there may be or what candidates have been overtly public supporters of Labour.

"While these should not be discriminated against, a much greater effort should be made to find people who are clearly neutral - and that is not being critical of Lord Hollick's qualities as an individual."

But a spokesman for the Department of Culture, Media and Sport said Lord Hollick's appointment was whiter than white.

Once he was chosen for the role by Culture Secretary Tessa Jowell, an independent assessor was consulted to advise on his qualifications for the job - and any disadvantages he might bring. But the assessor found Lord Hollick clearly above the line for this appointment, the spokesman said.

Clive Hollick owns the media conglomerate United Media. After Labour's 1997 election victory he was made special adviser to Margaret Beckett at the Department of Trade and Industry.

Over more than a decade some five plans to redevelop the crumbling infrastructure of the South Bank Centre have been taken up - and then dropped as impracticable. Now Lord Hollick will be under intense pressure to re-start the stalled process.

The first task in his unpaid new role will be to appoint a new chief executive, and after this, it emerged last night, Ms Jowell has set the peer a three-month deadline to formulate a plan of action of how to raise the millions needed for the revitalisation.