Donor business park probe urged

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The Conservatives are demanding a full inquiry into the granting of planning permission to a firm controlled by covert Labour donor David Abrahams.

Communities Secretary Hazel Blears has said the government will look into the decisions surrounding the proposed County Durham business park.

But Eric Pickles, for the Tories, called on her to go further.

Lib Dem deputy leadership contender Chris Huhne is calling for an investigation by Durham police.

Durham Police said officers would be contacting the Lib Dem MP in the "near future" to discuss his concerns.

The Durham Green development has been backed by Lib Dem-controlled Durham City Council.

'Material benefit'

A council spokesman stressed that decisions were made at officer level and that no politicians were involved.

But Mr Huhne said it was important to make sure that there had been no conflict of interest after the Highways Agency lifted its objection to the plan.

Suggestions that donors to the Labour Party may have influenced any government decision are extremely damaging to public life Eric Pickles, Shadow communities secretary

"This is an example of a decision taken by a government agency - the Highways Agency - to lift an objection which is of material benefit to an apparent donor to the Labour Party.

"Now there's a conflict of interest there, potentially, which needs to be got to the bottom of so that we can be reassured that there was no question of any ministerial involvement or pressure on the Highways Agency."

The Tories are demanding the release of all planning documents relating to the Durham Green development.

'Extremely damaging'

Mr Pickles, the party's communities spokesman, has written to Ms Blears demanding a full cross-departmental inquiry, including the Highways Agency, the Department for Transport and the government office of the North East.

He also asks whether Ms Blears has had any contact with Mr Abrahams during her time as a minister - and to release all supporting documents relating to the case.

"I am sure you will agree that suggestions that donors to the Labour Party may have influenced any government decision are extremely damaging to public life, and it is essential that you take steps to prove conclusively that this was not the case," writes Mr Pickles.

The company behind the development, Durham Green Developments, has only two directors - Ray Ruddick and Janet Kidd - the two employees of Mr Abrahams through whom he made donations of nearly £400,000 to Labour.

Mr Abrahams is not a director of the company, but it is registered at his home address in Gosforth, Newcastle.

And although Mr Abrahams was using the name David Martin in correspondence, Durham City Council said it was obvious from an early stage he was the main figure behind it.

'Appropriate conditions'

Last year, Lib Dem-controlled Durham City Council awarded the 540-acre business park outline planning permission, despite initially being blocked by the Highways Agency.

A similar outline application covering 64 acres was withdrawn in November 2005 after the Highways Agency imposed an Article 14 Direction ordering the council not to approve the plan because there were concerns about the amount of extra traffic using the nearby junction 61 of the motorway.

But the Highways Agency withdrew the objection for the latest plan, provided "appropriate planning conditions" were attached to the scheme.

It was one of the first schemes to get past a block on development from the Highways Agency because of over-capacity on the A1(M).

Police have launched an investigation into a series of donations totalling more than £650,000 made to the Labour Party by Mr Abrahams through proxies.