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MPs' watchdog launches Hain probe MPs' watchdog launches Hain probe
(about 2 hours later)
The Parliamentary Commissioner for Standards, John Lyon, has confirmed he is to launch an investigation into the funding row surrounding Peter Hain.The Parliamentary Commissioner for Standards, John Lyon, has confirmed he is to launch an investigation into the funding row surrounding Peter Hain.
Officials at the commissioner's office say Mr Lyon believes there are grounds for an inquiry, following a complaint by Tory MP David Davies.Officials at the commissioner's office say Mr Lyon believes there are grounds for an inquiry, following a complaint by Tory MP David Davies.
Mr Hain could face suspension from the Commons if he is found to have flouted the rules on members' interests.Mr Hain could face suspension from the Commons if he is found to have flouted the rules on members' interests.
Gordon Brown has given his backing to the work and pensions secretary.Gordon Brown has given his backing to the work and pensions secretary.
But he said the Work and Pensions, and Welsh Secretary's fate was out of his hands. But he said Mr Hain's fate was out of his hands.
'Poor administration''Poor administration'
Speaking to The Sun newspaper, the prime minister said Mr Hain was doing a "great job" and it would be a "great loss" if he had to leave the Cabinet. Speaking to The Sun newspaper, the prime minister said the minister was doing a "great job" and it would be a "great loss" if he had to leave the Cabinet.
But Mr Brown said the fate of Mr Hain would be decided by officials investigating his actions. But Mr Brown said the fate of Mr Hain would be decided by the Electoral Commission and the Parliamentary Commissioner for Standards.
He took his eye off the ball and he has apologised - the matter must rest with the authorities, who will look at these matters Gordon Brown Osborne defends donations actionsHe took his eye off the ball and he has apologised - the matter must rest with the authorities, who will look at these matters Gordon Brown Osborne defends donations actions
Mr Hain blamed poor administration for his failure to declare donations totalling £103,000 towards his unsuccessful bid to become deputy Labour leader last year, saying it was "absurd" to suggest he attempted to hide anything.Mr Hain blamed poor administration for his failure to declare donations totalling £103,000 towards his unsuccessful bid to become deputy Labour leader last year, saying it was "absurd" to suggest he attempted to hide anything.
He told the BBC: "A complaint has been made and I will co-operate fully with the relevant authorities to answer these complaints, of course I will.He told the BBC: "A complaint has been made and I will co-operate fully with the relevant authorities to answer these complaints, of course I will.
"I've been open and clear about this from the beginning when I discovered these donations had been made late."I've been open and clear about this from the beginning when I discovered these donations had been made late.
"I told the public, I told you in the media, I told the relevant authorities - the Parliamentary Commissioner for Standards and also the Electoral Commission."I told the public, I told you in the media, I told the relevant authorities - the Parliamentary Commissioner for Standards and also the Electoral Commission.
"I'll continue to cooperate with everybody.""I'll continue to cooperate with everybody."
Speculation
But Mr Hain faces questions over the role of a think-tank, the Progressive Policies Forum (PPF), in channelling donations.But Mr Hain faces questions over the role of a think-tank, the Progressive Policies Forum (PPF), in channelling donations.
The think-tank employs no staff and has not published any research since it was set up in December 2006.The think-tank employs no staff and has not published any research since it was set up in December 2006.
Commission report Tory shadow work and pensions secretary Chris Grayling has written to Mr Hain asking a number of detailed questions, particularly about the status of the PPF.
He said it was in the interests of all involved that the minister gave "immediate, clear and public answers" to put an end to the speculation.
Mr Brown told the Sun that he expected Mr Hain to carry on in government.Mr Brown told the Sun that he expected Mr Hain to carry on in government.
But he said ultimately it was up to the Electoral Commission and the Parliamentary Commissioner for Standards to decide. Commission report
"He took his eye off the ball and he has apologised. The matter must rest with the authorities, who will look at these matters," Mr Brown said. However, he added: "He took his eye off the ball and he has apologised. The matter must rest with the authorities, who will look at these matters."
He has a choice: he can get out there and explain himself or I think he will have to leave the cabinet David Cameron on Peter Hain Send us your commentsHe has a choice: he can get out there and explain himself or I think he will have to leave the cabinet David Cameron on Peter Hain Send us your comments
In a separate development, the Electoral Commission is expected to produce its initial report into the funding row by the end of the week. The Electoral Commission is expected to produce its initial report into the funding row by the end of the week.
This initial report will focus on the donors who gave money to Mr Hain and whether they were eligible to hand over the cash. A full report is expected later. This report will focus on the donors who gave money to Mr Hain and whether they were eligible to hand over the cash. A full report is expected later.
Labour MP Ian Gibson told BBC Radio 4's World At One programme he was surprised Mr Hain had allowed himself to get into "messes like this" and said he would resign in the minister's position. Chancellor Alistair Darling said: "The prime minister has made it clear that he values the work Peter Hain is doing at the Department of Work and Pensions. Clearly there is an inquiry and Peter has said that he will co-operate with that fully as everybody would expect."
But Labour MP Ian Gibson told BBC Radio 4's World At One programme he was surprised Mr Hain had allowed himself to get into "messes like this" and said he would resign in the minister's position.
"I think I would feel ashamed I had let the side down," he said."I think I would feel ashamed I had let the side down," he said.
'Nothing sinister''Nothing sinister'
He also questioned the use of the PPF to channel money to Mr Hain's campaign, adding: "It gives think-tanks a bad name."He also questioned the use of the PPF to channel money to Mr Hain's campaign, adding: "It gives think-tanks a bad name."
But fellow Labour MP Paul Flynn said "innuendos" about the PPF were wrong and there was "nothing sinister" about it - as it had been set up specifically to support Mr Hain and his policies.But fellow Labour MP Paul Flynn said "innuendos" about the PPF were wrong and there was "nothing sinister" about it - as it had been set up specifically to support Mr Hain and his policies.
George Osborne is a close friend of Tory leader David CameronGeorge Osborne is a close friend of Tory leader David Cameron
He said a "rap across the knuckles" was more appropriate than asking Mr Hain to abandon his career, saying that would be a "terrible shame".He said a "rap across the knuckles" was more appropriate than asking Mr Hain to abandon his career, saying that would be a "terrible shame".
The Tories have themselves comes under fire after it was reported that shadow chancellor George Osborne did not declare £487,000 of donations to the Register of Members' Interests.The Tories have themselves comes under fire after it was reported that shadow chancellor George Osborne did not declare £487,000 of donations to the Register of Members' Interests.
Earlier, Conservative leader David Cameron said the two cases were "completely different" because Mr Osborne's donations had been registered with the Electoral Commission.Earlier, Conservative leader David Cameron said the two cases were "completely different" because Mr Osborne's donations had been registered with the Electoral Commission.
Of Mr Hain, he said: "He has a choice: he can get out there and explain himself or I think he will have to leave the cabinet.Of Mr Hain, he said: "He has a choice: he can get out there and explain himself or I think he will have to leave the cabinet.
"It is quite a contrast: George Osborne on the Today programme this morning answering all the questions about the funding of his office - Peter Hain nowhere to be seen, and I do not think that is acceptable.""It is quite a contrast: George Osborne on the Today programme this morning answering all the questions about the funding of his office - Peter Hain nowhere to be seen, and I do not think that is acceptable."