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Scottish Labour defend Tory donor as Alex Salmond calls for rethink Scottish Labour defend Tory donor as Alex Salmond calls for rethink
(about 2 hours later)
Labour is trying to resist intense pressure over a controversial donation by the Tory supporter and oil trader Ian Taylor to the anti-independence Better Together campaign after Alex Salmond said it ought to be returned.Labour is trying to resist intense pressure over a controversial donation by the Tory supporter and oil trader Ian Taylor to the anti-independence Better Together campaign after Alex Salmond said it ought to be returned.
Johann Lamont, the Scottish Labour leader, insisted Taylor's £500,000 gift to the Better Together – the largest of a number of private donations it received - was an "appropriate donation" after the first minister added to calls for a rethink.Johann Lamont, the Scottish Labour leader, insisted Taylor's £500,000 gift to the Better Together – the largest of a number of private donations it received - was an "appropriate donation" after the first minister added to calls for a rethink.
The deal was brokered by the former Labour Chancellor and chairman of Better Together, Alistair Darling, last year. The pro-UK campaign, an umbrella group for Labour, the Lib Dems and Tories, insist it was a "valid donation" given in a private capacity.The deal was brokered by the former Labour Chancellor and chairman of Better Together, Alistair Darling, last year. The pro-UK campaign, an umbrella group for Labour, the Lib Dems and Tories, insist it was a "valid donation" given in a private capacity.
On Thursday, Salmond put his name behind efforts by the Scottish National party and pro-independence campaigners to embarrass Better Together after it emerged Taylor's company Vitol, the world's largest oil trader, had had a series of controversial deals with Saddam Hussein's Iraq, an Iranian oil shipment, the Serbian warlord Arkan and Libyan rebels.On Thursday, Salmond put his name behind efforts by the Scottish National party and pro-independence campaigners to embarrass Better Together after it emerged Taylor's company Vitol, the world's largest oil trader, had had a series of controversial deals with Saddam Hussein's Iraq, an Iranian oil shipment, the Serbian warlord Arkan and Libyan rebels.
After the Iraq deal, Vitol was one of a number of oil firms fined for breaching UN sanctions: it was accused by a New York court of paying $13m in kickbacks to the Iraqi state oil company and fined $17.5m. Vitol said the "surcharges" were demanded by the firm as a condition of doing business.After the Iraq deal, Vitol was one of a number of oil firms fined for breaching UN sanctions: it was accused by a New York court of paying $13m in kickbacks to the Iraqi state oil company and fined $17.5m. Vitol said the "surcharges" were demanded by the firm as a condition of doing business.
Labour MPs, including Douglas Alexander, have raised questions over Vitol's links to Alan Duncan, the Tory minister who worked for the firm before the 2010 general election. Vitol has denied allegations Duncan brokered its own deals with the Libyan rebels, insisting it was arranged through Qatar, and with Foreign Office knowledge.Labour MPs, including Douglas Alexander, have raised questions over Vitol's links to Alan Duncan, the Tory minister who worked for the firm before the 2010 general election. Vitol has denied allegations Duncan brokered its own deals with the Libyan rebels, insisting it was arranged through Qatar, and with Foreign Office knowledge.
The controversy blew into life last week, the day after Better Together published its first set of donors names, when Vitol's lawyers sent threatening letters to the pro-independence National Collective website, which first highlighted Vitol's past, to at least one other nationalist blogger, Wings over Scotland, and to the Herald newspaper.

On Thursday, National Collective relaunched its website – which had originally been taken down entirelyon advice from its lawyer, Aamer Anwar, as a precaution – with a heavily revised version of its original blog. It refused to apologise for the original post, and insisted it was "fair comment" and based on information already in the public domain.
The controversy blew into life last week, the day after Better Together published its first set of donors names, when Vitol's lawyers sent threatening letters to the pro-independence National Collective website, which first highlighted Vitol's past, to at least one other nationalist blogger, Wings over Scotland, and to the Herald newspaper.

On Thursday, National Collective relaunched its website – which had originally been taken down entirelyon advice from its lawyer, Aamer Anwar, as a precaution – with a heavily revised version of its original blog. It refused to apologise for the original post, and insisted it was "fair comment" and based on information already in the public domain.
Now entitled "Dirty Money?' The Tory Millionaire Bankrolling Better Together", it included Vitol's denials, with the preview statement:Now entitled "Dirty Money?' The Tory Millionaire Bankrolling Better Together", it included Vitol's denials, with the preview statement:
This article now includes a right of reply from Ian Taylor and Vitol, which was not included in the original publication of the 7th of April, 2013. This reply is now incorporated into this article which is republished once more in full on our website.This article now includes a right of reply from Ian Taylor and Vitol, which was not included in the original publication of the 7th of April, 2013. This reply is now incorporated into this article which is republished once more in full on our website.
The SNP leader told BBC Scotland on Thursday:The SNP leader told BBC Scotland on Thursday:
The problem is the range of activities which is suggested that the company have been involved in.The problem is the range of activities which is suggested that the company have been involved in.
I think the Better Together campaign should examine this and return the money in the same way as the Labour Party argued that the Conservatives should return the money when a donation was made to them.I think the Better Together campaign should examine this and return the money in the same way as the Labour Party argued that the Conservatives should return the money when a donation was made to them.
Now being pressed hard over the controversy as it prepared for its annual Scottish conference, Labour insists Taylor's critics are guilty of double-standards: he has made a significant multi-million pound gift to reopen the Shawbost tweed mill which has been pivotal to the revival of the Harris tweed industry, but no-one was questioning that gift. Now being pressed hard over the controversy as it prepared for its annual Scottish conference, Labour insists Taylor's critics are guilty of double-standards: he has put in "well in excess of £1m" to help reopen the Shawbost tweed mill which has been pivotal to the revival of the Harris tweed industry (he has a £750,000 shareholding the Harris Tweed firm), but no-one was questioning that investment.
Willie Rennie, the Scottish Lib Dem leader, agreed, stating:Willie Rennie, the Scottish Lib Dem leader, agreed, stating:
If it's good enough for Harris tweed, it should be good enough for Better Together.If it's good enough for Harris tweed, it should be good enough for Better Together.
Speaking on BBC Radio Scotland on Friday, Lamont first acknowledged she had not been consulted about the donation, but said she trusted Darling and was content with Better Together's handling of all its donations:Speaking on BBC Radio Scotland on Friday, Lamont first acknowledged she had not been consulted about the donation, but said she trusted Darling and was content with Better Together's handling of all its donations:
Across Scotland, people recognise the probity of Alistair Darling, everything that he has done, he has been charged with the responsibility and I have every confidence in his probity...Across Scotland, people recognise the probity of Alistair Darling, everything that he has done, he has been charged with the responsibility and I have every confidence in his probity...
[In] my view it is an appropriate donation and I think it is important that at every stage we test for probity and transparency and I have every confidence that my friends in Better Together are doing that.[In] my view it is an appropriate donation and I think it is important that at every stage we test for probity and transparency and I have every confidence that my friends in Better Together are doing that.
Now being feted in pro-independence circles, National Collective was defiant. Its director, Ross Colquhoun, said:Now being feted in pro-independence circles, National Collective was defiant. Its director, Ross Colquhoun, said:
Such corporate bully boy tactics are an attack on freedom of speech. We will not be silenced or bullied by legal intimidation.Such corporate bully boy tactics are an attack on freedom of speech. We will not be silenced or bullied by legal intimidation.
Better Together and Yes Scotland, the pro-independence campaign, are locked in a wider battle over their funding. Better Together insists it has had more individual donations than Yes Scotland, which it says is heavily reliant on SNP supporters, including the EuroMillions winners Colin and Chris Weir.Better Together and Yes Scotland, the pro-independence campaign, are locked in a wider battle over their funding. Better Together insists it has had more individual donations than Yes Scotland, which it says is heavily reliant on SNP supporters, including the EuroMillions winners Colin and Chris Weir.
While insisting factual inaccuracies remained in National Collective's revised blog, Vitol appears to have accepted the compromise - it told the BBC it was happy the new version had appeared.While insisting factual inaccuracies remained in National Collective's revised blog, Vitol appears to have accepted the compromise - it told the BBC it was happy the new version had appeared.
The Taylor affair, however, has bloodied and bruised Better Together: its supporters fear the row has undermined its attractiveness to other donors and damaged its wider credibility.The Taylor affair, however, has bloodied and bruised Better Together: its supporters fear the row has undermined its attractiveness to other donors and damaged its wider credibility.
• This article has been amended to clarify Taylor's financial involvement in Harris Tweed