Straw is dragged into peers for hire mire

JUSTICE Secretary Jack Straw was today dragged into the Lords-for-hire scandal.

Evening Standard can reveal that he has received payments through the peer at the heart of the damaging sleaze row.

One was a personal gift from Lord Taylor of Blackburn, who has boasted he can earn £100,000 a go as a paid lobbyist.

The other was a £3,000 donation, solicited by the peer from a firm which is paying him as an adviser as it seeks to open a new gas storage centre.

Evening Standard can reveal that Lord Taylor has had to apologise in Parliament for failing to declare an interest in this company when intervening in a debate on energy. Details of the close financial links between Mr Straw and Lord Taylor will raise fresh questions over the relationship between lobbyists, big business and politicians.

The Cabinet minister has been rapped by the Commons watchdog for failing to register a £3,000 donation from Canatxx Energy Ventures in 2004 which has been seeking to overcome local opposition in order to build a gas storage plant in the Wyre estuary, close to the MP's constituency.

Lord Taylor is an adviser to Canatxx Energy Ventures which made the gift for a party at Blackburn Rovers' stadium to celebrate Mr Straw's 25th anniversary as an MP.

During questions on 22 October last year on winter energy supplies, Lord Taylor intervened. He said: "My Lords, does my noble friend agree that planning officers should be more aware of the national need for gas storage and that they should not take into account certain objections brought forward by certain residents in certain areas?" Six days later, however, the peer was forced to apologise. He said: "On 22 October...I asked a supplementary question about gas storage.

"On reflection, I should have declared an interest, which appears in the register of non-parliamentary interests, in a company called Canatxx Energy Ventures Limited. I humbly apologise to the House."

Mr Straw has admitted in correspondence with the parliamentary sleaze watchdog that it was Lord Taylor who "approached" Canatxx and invited them to the dinner.

The peer has also financially supported the Cabinet minister through donating to the Blackburn Labour Party's election expenses for his parliamentary candidature. Lord Taylor denies any wrongdoing in his business dealings. Liberal Democrat leader Nick Clegg today stepped up the pressure on the Government by demanding new legislation to allow peers to be expelled from Parliament.

Mr Clegg said: "This case exposes the extraordinary protection enjoyed by the political classOne rule for lawmakers and another for everyone else. The most the accused peers will have to do if the Lords investigation finds them guilty is to apologise. That is why I am also now calling on the Government to introduce urgent new legislation to change the rules so that peers found guilty of wrongdoing are expelled from Parliament."

Yesterday, Lord Taylor told the Upper Chamber: "If I have done anything that brought this House into disrepute, I humbly apologise." He added: "Within my own conscience I have followed the rules".

The donation from Canatxx was paid into a "petty cash" account and the local Labour party treasurer was unaware of it. Mr Straw denies seeking to influence any decision in favour of the firm. The company also rejects allegations that it is seeking to get planning permission through lobbying of politicians.

The other Labour peers involved in the furore are Lord Snape, former defence minister Lord Moonie and former energy minister Lord Truscott. All deny any wrongdoing.

Labour backbencher Bob Marshall-Andrews told Radio 4's Today programme: "If it is true, it is making a secret profit out of public office, which seems to me to tick those necessary boxes for corruption. I would have thought there is sufficient, if it is true, to put this up to the new Director [of Public Prosecutions]."