Hodge still under pressure

A child-abuse victim labelled "extremely disturbed" by Children's Minister Margaret Hodge today said he was "absolutely delighted" to have forced her to make a public apology.

But Demetrius Panton claimed that Mrs Hodge's climbdown had left her as a "downgraded minister" - adding to a belief at Westminster that her position is still in doubt.

Mrs Hodge's solicitor will read out an apology to Mr Panton in the High Court tomorrow. She will donate £10,000 to a charity of his choice, and pay his legal costs of at least a further £10,000. And she will send him a private letter by a deadline of this afternoon explaining why she attacked him.

Mr Panton told the Evening Standard that he had been "devastated" by the minister's remark about him, made in a letter to the BBC.

He said: "I am absolutely delighted by the outcome. If you saw me three weeks ago, you would not believe that I would get a minister to apologise. It's quite an achievement, I can tell you.

"I've done everything I can do get the libel withdrawn, to clear my name and reputation. She has libelled me and she has had to apologise. And now I will try to live my life and hope to put this week behind me.

"I was devastated by what she said. The biggest devastation was that my life had changed so significantly after that. I am glad that I've won my battle against her, but it will still hurt." The climbdown by Mrs Hodge saved her career in the short-term, because she could not have continued as a minister while defending a libel action.

But the nature of the deal struck last night between her lawyers and Mr Panton's representatives put a questionmark over her future. The Tories have called for her to resign but Tony Blair has stood by her so far.

In a further blast, Mr Panton said: "The last days have not added anything to Mrs Hodge's standing.

"Young people face a very tough time in our society They need someone who champions their cause and is respected. They don't need a downgraded minister."

Mr Panton was abused while in care in Islington in the 1970s, where Mrs Hodge was council leader for 10 years from 1982. He is now 35 and an adviser to John Prescott's department.

Mrs Hodge made the comment about him in a letter to BBC chairman Gavyn Davies after learning that Radio 4's Today programme was looking into Mr Panton's claim he had contacted her in 1985 to tell her of the abuse he had suffered a few years earlier. Mrs Hodge said she was not told of his allegations.

The BBC responded by reading out that section of the letter on air. Mr Panton took legal advice and decided to sue for libel.

Mrs Hodge wrote a letter of apology last Friday but Mr Panton decided not to drop the suit until she had gone further.

In a statement last night announcing the deal, Mrs Hodge said: "I can now confirm that we have agreed the following. One, a statement in court will be made shortly reiterating the apology made on 14 November.

"Two, I will make a donation of £10,000 to Nacro. Three, I have agreed to pay Mr Panton's legal costs."

Her parliamentary private secretary, the Labour MP Michael Foster, brushed aside questions about calls for her resignation. He said: "Her position hasn't changed. She remains committed to the work that she is doing on the government's agenda for children."

Asked whether she would continue with her public duties this week, he said: "She will be carrying on with whatever arrangements she can, bearing in mind that Government business over the next few days is quite heavy."

In September, Mrs Hodge published the Children's Green Paper which paved the way for a radical shake-up of children's health and social services .

Much of it was written in response to the recommendations of the Laming Inquiry into the death of Victoria Climbie. Opponents claim its publication was postponed from June because of the row over the Islington childabuse scandal, amid claims by former council social workers that she had ignored warnings.

Mrs Hodge insisted the delay was to enable the Prime Minister to be personally associated with the launch of the most radical child protection reforms for years.