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Brown 'right to wait over Hain' No more resignations, says Browne
(1 day later)
Gordon Brown has said he was right not to decide on Peter Hain's future before the Electoral Commission reported its findings on donations. There will be no further resignations of prominent Labour politicians over the donations row, Defence Secretary Des Browne has predicted.
Mr Hain resigned after the organisation asked police to investigate the late declaration of £103,000 given to his Labour deputy leadership campaign. Mr Browne, who is also Scottish Secretary, added that he does not expect any more colleagues will be reported to the police over the issue.
The prime minister said it had been "the right thing to do" not to sack him as work and pensions secretary. His comments come after Peter Hain quit his cabinet posts over the row.
But the Conservatives have accused Mr Brown of "dithering". Scottish Labour chief Wendy Alexander also faces a probe over donations to her party leadership campaign.
'Facts' Mr Hain resigned as work and pensions secretary and Wales secretary after the Electoral Commission, which is investigating more than £100,000 of undeclared donations to his deputy Labour leadership campaign, passed the case to police.
Mr Hain, who has been replaced as work and pensions secretary by James Purnell, came sixth in the race to be Labour's deputy leader. 'Acted honestly'
He resigned on Thursday, promising to clear his name. He insists the donations were an innocent mistake and has pledged to clear his name.
Mr Brown, speaking at the world economic forum in Davos, said: "I always said, and I think this is the right thing to do, that we wait until the Electoral Commission itself reported. A question mark hangs over Ms Alexander's political future as she faces an Electoral Commission probe into apparently illegal donations.
I am absolutely satisfied that he will be able to clear his name in relation to this Defence Secretary Des Browne
A Jersey-based businessman donated £950 after an approach from her campaign team, in an apparent breach of the law requiring donations to be from UK voters or companies.
But Mr Browne, in an interview for BBC Scotland's Politics Show, being broadcast on Sunday, said he believed those involved in the donations row had "acted honestly", adding: "I am not anticipating that anyone else will be reported to the police."
'Dithering'
Hailing Mr Hain as "a good man, very good politician, and valued colleague", he continued: "I am absolutely satisfied that he will be able to clear his name in relation to this, when he is given the space and time to do it, and that's why he's resigned from the government.
"I don't expect that any of the rest of my colleagues will need to resign from any positions that they are in."
CABINET RESHUFFLE Work and Pensions Secretary: James PurnellCulture Secretary: Andy BurnhamChief Secretary to the Treasury: Yvette CooperHousing Minister: Caroline FlintSecretary of State for Wales: Paul Murphy Profile: James PurnellProfile: Andy BurnhamCABINET RESHUFFLE Work and Pensions Secretary: James PurnellCulture Secretary: Andy BurnhamChief Secretary to the Treasury: Yvette CooperHousing Minister: Caroline FlintSecretary of State for Wales: Paul Murphy Profile: James PurnellProfile: Andy Burnham
"They have the facts, they were looking at them, they made the judgement and now we get on with the business. Prime Minister Gordon Brown has insisted he was right not to decide Mr Hain's future before the Electoral Commission move - despite Tory accusations of "dithering".
"And the most important thing that people should know is that we're getting on with the business of government." In a pre-recorded interview for BBC1's The Politics Show, being broadcast on Sunday, he refused to "speculate" on whether Mr Hain has a future in government if cleared.
Mr Purnell, in a BBC interview, was asked whether the Hain funding row and other controversies involving donations had left a "bit of a taint around the question of Labour's relationship with money" But SNP MSP Roseanna Cunningham said Labour was clearly desperate to avoid any "domino effect" from Mr Hain's resignation.
He replied: "No. I don't think so." "Des Browne and the Labour party must have an inside track to the Electoral Commission, otherwise his pronouncements may be premature," she said.
Mr Purnell added : "I do think what is right to do is to move forward on Sir Hayden Phillips' recommendations and that's what we are committed to doing... David Cameron should do the same thing." "If Wendy Alexander and her campaign team are going to get away with what they admit was breaking the law, the Electoral Commission should be open about it."
The Conservatives also say they want to reform party funding - and have called for a cap on donations. Mr Hain, MP for Neath, is the first cabinet member to quit under Mr Brown's premiership.
Talks He was replaced at work and pensions by former culture secretary James Purnell and as Welsh secretary by Paul Murphy.
But they have said the funding scandals to have hit Labour have been caused by ministers failing to follow the existing rules, which were brought in by Labour.
Shadow Cabinet Office minister Francis Maude said: "We have always said we will restart talks as soon as Gordon Brown accepts the need for an across-the-board cap on donations.
"The talks broke down last October because Labour were unwilling to consider any meaningful reform of the trade unions' control of Labour's finances."
Mr Hain, the MP for Neath, is the first cabinet member to quit under Gordon Brown's premiership. His other post - Welsh secretary - goes to Paul Murphy.
In the reshuffle, Mr Purnell is replaced as culture secretary by Andy Burnham. Yvette Cooper replaces Mr Burnham as chief secretary to the treasury, and Caroline Flint becomes housing minister.