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David Cameron has 'full confidence' in Liam Fox David Cameron has 'full confidence' in Liam Fox
(about 1 hour later)
  
David Cameron "has full confidence" in his defence secretary after questions about Liam Fox's working relationship with Adam Werritty, No 10 has said.David Cameron "has full confidence" in his defence secretary after questions about Liam Fox's working relationship with Adam Werritty, No 10 has said.
Mr Fox denied wrongdoing over dealings with his friend, but admitted making mistakes and apologised to the PM.Mr Fox denied wrongdoing over dealings with his friend, but admitted making mistakes and apologised to the PM.
Mr Werritty, who has no government role or national security clearance, sat in on several meetings with Mr Fox.Mr Werritty, who has no government role or national security clearance, sat in on several meetings with Mr Fox.
Mr Fox set up a Ministry of Defence inquiry into his conduct, and will answer questions from MPs at 2.30pm.Mr Fox set up a Ministry of Defence inquiry into his conduct, and will answer questions from MPs at 2.30pm.
In the regular briefing of lobby reporters on Monday, the prime minister's official spokesman said Mr Fox was doing an "excellent job".In the regular briefing of lobby reporters on Monday, the prime minister's official spokesman said Mr Fox was doing an "excellent job".
The spokesman said the PM would not see the interim report from the MoD about Mr Fox's conduct until after he delivers a speech on immigration.The spokesman said the PM would not see the interim report from the MoD about Mr Fox's conduct until after he delivers a speech on immigration.
The BBC has been told the prime minister will consider the interim report but will not make a final decision on Mr Fox's future until he sees the full report due on 21 October.The BBC has been told the prime minister will consider the interim report but will not make a final decision on Mr Fox's future until he sees the full report due on 21 October.
Mr Werritty, 34, was Mr Fox's best man in 2005 and a former flatmate and also used to carry cards describing himself as an adviser to "the Rt Hon Liam Fox MP".Mr Werritty, 34, was Mr Fox's best man in 2005 and a former flatmate and also used to carry cards describing himself as an adviser to "the Rt Hon Liam Fox MP".
In his statement, Mr Fox admitted it had been "a mistake to allow distinctions to be blurred between my professional responsibilities and my personal loyalties to a friend".In his statement, Mr Fox admitted it had been "a mistake to allow distinctions to be blurred between my professional responsibilities and my personal loyalties to a friend".
By acknowledging he has made mistakes, Liam Fox clearly hopes to draw a line under this row.By acknowledging he has made mistakes, Liam Fox clearly hopes to draw a line under this row.
But his apology may make little difference to whether or not he survives in his post.But his apology may make little difference to whether or not he survives in his post.
What will determine his fate is not the extent of his apology, or indeed whether he has breached the ministerial code - it will be determined by whether the prime minister believes Mr Fox can carry on as defence secretary.What will determine his fate is not the extent of his apology, or indeed whether he has breached the ministerial code - it will be determined by whether the prime minister believes Mr Fox can carry on as defence secretary.
If Mr Cameron takes the view that Mr Fox is now too damaged, or unlikely to be able to focus fully on his job, or there are further allegations to emerge, he may decide he has to go.If Mr Cameron takes the view that Mr Fox is now too damaged, or unlikely to be able to focus fully on his job, or there are further allegations to emerge, he may decide he has to go.
Central to that decision will be the interim report on Mr Fox, which is due to be handed to the prime minister on Monday, and the nature of the media coverage.Central to that decision will be the interim report on Mr Fox, which is due to be handed to the prime minister on Monday, and the nature of the media coverage.
In short, Mr Fox's fate still hangs in the balance.In short, Mr Fox's fate still hangs in the balance.
Mr Fox said that at no stage had he or his department provided classified information or briefings to Mr Werritty, who visited him a number of times at the MoD, or assisted with his commercial work in the defence industry - "let alone benefit personally from this work".Mr Fox said that at no stage had he or his department provided classified information or briefings to Mr Werritty, who visited him a number of times at the MoD, or assisted with his commercial work in the defence industry - "let alone benefit personally from this work".
"Nevertheless, I do accept that given Mr Werritty's defence-related business interests, my frequent contacts with him may have given an impression of wrongdoing, and may also have given third parties the misleading impression that Mr Werritty was an official adviser rather than simply a friend," he said."Nevertheless, I do accept that given Mr Werritty's defence-related business interests, my frequent contacts with him may have given an impression of wrongdoing, and may also have given third parties the misleading impression that Mr Werritty was an official adviser rather than simply a friend," he said.
The BBC's political editor Nick Robinson said: "This may not, after all, be D-Day for Liam Fox. The prime minister's verdict is likely, I am told, to prove to be 'interim' as well.The BBC's political editor Nick Robinson said: "This may not, after all, be D-Day for Liam Fox. The prime minister's verdict is likely, I am told, to prove to be 'interim' as well.
"Downing St speeded up the process, persuaded Liam Fox to apologise and to throw himself at the mercy of MPs in the Commons. They hope he will come through."Downing St speeded up the process, persuaded Liam Fox to apologise and to throw himself at the mercy of MPs in the Commons. They hope he will come through.
"However the prime minister is being given the wriggle room that if the facts change between now and the 21 October so too can his verdict.""However the prime minister is being given the wriggle room that if the facts change between now and the 21 October so too can his verdict."
He added that a main source of information in this story had been involved in a complex and bitter legal case in the US courts, and it would have been impossible for the government to analyse all the information available over the weekend.He added that a main source of information in this story had been involved in a complex and bitter legal case in the US courts, and it would have been impossible for the government to analyse all the information available over the weekend.
Earlier, Shadow Defence Secretary Jim Murphy said a weekend inquiry into years of allegations was not good enough.Earlier, Shadow Defence Secretary Jim Murphy said a weekend inquiry into years of allegations was not good enough.
"If David Cameron tries to clear his cabinet colleague today then it's obvious that someone at number 10 has spent the weekend down at B&Q and buying enough paint to organise a whitewash.""If David Cameron tries to clear his cabinet colleague today then it's obvious that someone at number 10 has spent the weekend down at B&Q and buying enough paint to organise a whitewash."
He said Liam Fox's "partial apology" had been a "tacit admission" that he had broken the ministerial code.He said Liam Fox's "partial apology" had been a "tacit admission" that he had broken the ministerial code.
Conservative MP Greg Hands said Mr Fox had made a "very full and frank admission of things that did go wrong", which should be taken "at face value".Conservative MP Greg Hands said Mr Fox had made a "very full and frank admission of things that did go wrong", which should be taken "at face value".
He said nothing illegal had happened and there had been no breaches of national security.He said nothing illegal had happened and there had been no breaches of national security.
He added: "There's a lot of background to this case in the United States between a major corporation and a private equity firm and there is actually quite a bad smell about some of the briefing against Liam Fox that's been going on."He added: "There's a lot of background to this case in the United States between a major corporation and a private equity firm and there is actually quite a bad smell about some of the briefing against Liam Fox that's been going on."
Another Tory MP, Patrick Mercer, said he was concerned the affair would not go away quickly at a time when the armed forces needed a "capable and undistracted" defence secretary.Another Tory MP, Patrick Mercer, said he was concerned the affair would not go away quickly at a time when the armed forces needed a "capable and undistracted" defence secretary.
A series of newspaper revelations over the weekend increased the pressure on Mr Fox since he set up the inquiry on Friday:A series of newspaper revelations over the weekend increased the pressure on Mr Fox since he set up the inquiry on Friday:
  • A video from a Sri Lankan TV broadcast emerged that showed Mr Werritty at a meeting the Sri Lankan president had with the defence secretary in London last year, although the MoD said Mr Fox had attended the meeting with Mahinda Rajapaksa in a private capacity
  • Email correspondence published by the Guardian called into question Mr Fox's claim that a meeting with defence industry businessmen in Dubai had been impromptu - suggesting, rather, that Mr Werritty had been involved in planning the discussions for some time.
  • A video from a Sri Lankan TV broadcast emerged that showed Mr Werritty at a meeting the Sri Lankan president had with the defence secretary in London last year, although the MoD said Mr Fox had attended the meeting with Mahinda Rajapaksa in a private capacity
  • Email correspondence published by the Guardian called into question Mr Fox's claim that a meeting with defence industry businessmen in Dubai had been impromptu - suggesting, rather, that Mr Werritty had been involved in planning the discussions for some time.
On the Dubai meeting, which was said to have been brokered by Mr Werritty, the defence secretary said it had been "wrong to meet with a commercial supplier without the presence of an official".On the Dubai meeting, which was said to have been brokered by Mr Werritty, the defence secretary said it had been "wrong to meet with a commercial supplier without the presence of an official".
"I have apologised to the prime minister and agreed with my permanent secretary to put in place new procedures to ensure that this does not happen again," he said."I have apologised to the prime minister and agreed with my permanent secretary to put in place new procedures to ensure that this does not happen again," he said.
He pledged to answer "all questions" in the House of Commons.He pledged to answer "all questions" in the House of Commons.