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Party funding row 'a sorry tale' Party funding row 'a sorry tale'
(about 2 hours later)
The row over hidden donations to Labour is a "sorry tale of lawbreaking at the highest levels", the Tories have said.The row over hidden donations to Labour is a "sorry tale of lawbreaking at the highest levels", the Tories have said.
Shadow Cabinet Office minister Francis Maude called on the government to push for "long-term comprehensive reform".Shadow Cabinet Office minister Francis Maude called on the government to push for "long-term comprehensive reform".
The Tories called a Commons debate on the issue, after it emerged a property developer donated more than £650,000 to Labour under other people's names. The Tories called a Commons debate on the issue after it emerged a property developer donated more than £650,000 to Labour under other people's names.
Justice Secretary Jack Straw told MPs that a White Paper on funding reform would be brought forward soon.Justice Secretary Jack Straw told MPs that a White Paper on funding reform would be brought forward soon.
Mr Maude said that "the longer this saga goes on, the more unanswered questions arise".Mr Maude said that "the longer this saga goes on, the more unanswered questions arise".
'Unacceptable''Unacceptable'
He added: "This has been a sorry tale of lawbreaking at the highest levels by one of Britain's biggest parties."He added: "This has been a sorry tale of lawbreaking at the highest levels by one of Britain's biggest parties."
The Tories had been due to use their Parliamentary time to debate the civil service but changed topics after what they call the "succession of scandals". The Tories had been due to use their parliamentary time to debate the civil service but changed topics after the donations were revealed.
PM 'wants quick reforms'How are parties funded?PM 'wants quick reforms'How are parties funded?
Property developer David Abrahams says he donated the money using the names of four associates, because he wanted to maintain his privacy and did not realise he was doing anything wrong. Property developer David Abrahams says he donated the money under other people's names because he wanted to maintain his privacy.
Police are now investigating those donations, which Mr Brown has already described as "completely unacceptable" and has pledged to pay back. Police are now investigating those donations, which Gordon Brown has said were "completely unacceptable" and pledged to pay back. By law, anyone donating more than £5,000 must be identified and their details disclosed.
By law, anyone donating more than £5,000 must be identified and relevant details about them disclosed. In the Commons, Mr Maude said it was "literally incredible" that Labour former general secretary Peter Watt, who quit over the donations, or chief fundraiser Jon Mendelsohn had not known the practice of proxy donations was illegal.
Mr Maude said it was "literally incredible" that Labour former general secretary Peter Watt, who quit over the donations, or chief fundraiser Jon Mendelsohn had not known the practice of proxy donations was illegal. Big donor culture
He said the requirement to disclose the identity of donors was the "central feature" of the laws on party funding.He said the requirement to disclose the identity of donors was the "central feature" of the laws on party funding.
'Criminal' Mr Brown has said he wants to press ahead quickly with party funding reform - previous cross-party talks collapsed over a failure to agree on a raft recommendations in a review by Sir Hayden Philips.
Mr Maude added: "This is not some arcane technicality, some bylaw, some obscure rule. Lib Dem justice spokesman David Heath told the Commons debate that caps on donations and expenditure were needed to "get us away from the culture of big donors".
"The breach of this requirement is a criminal offence and anyone involved in political fundraising knows this." "Rich donors are nothing but trouble for the parties. That is demonstrably true," he said.
HAVE YOUR SAY However political parties are funded you will pay one way or the other Tom Bombadil, Oxfordshire Send us your commentsHAVE YOUR SAY However political parties are funded you will pay one way or the other Tom Bombadil, Oxfordshire Send us your comments
Lib Dem justice spokesman David Heath said: "Rich donors are nothing but trouble for the parties. That is demonstrably true.
"It demeans the political process that so much effort is made to woo people with large amounts of money.""It demeans the political process that so much effort is made to woo people with large amounts of money."
MPs from all sides made claim and counter claim about different sources of funding to their rivals during rowdy Commons exchanges.MPs from all sides made claim and counter claim about different sources of funding to their rivals during rowdy Commons exchanges.
Labour MPs asked questions about Tory donor Lord Ashcroft's tax status, while the Lib Dems were asked if they would be repaying a £2.4m donations from Michael Brown - who was later jailed for perjury.Labour MPs asked questions about Tory donor Lord Ashcroft's tax status, while the Lib Dems were asked if they would be repaying a £2.4m donations from Michael Brown - who was later jailed for perjury.
'Moral high ground'
Veteran Labour MP Dennis Skinner asked about donations made to the last Conservative government by fugitive tycoon Asil Nadir, demanding : "Who is on the moral high ground now?"
Mr Maude said things must be difficult for Labour when they were referring to "ancient history".
Justice Secretary Jack Straw told MPs a White Paper on funding reform was in preparation and would be published as soon as possible - to be followed by legislation soon after.Justice Secretary Jack Straw told MPs a White Paper on funding reform was in preparation and would be published as soon as possible - to be followed by legislation soon after.
He said the government hoped to achieve consensus for the future "but in any event we need legislation".He said the government hoped to achieve consensus for the future "but in any event we need legislation".
Conservative leader David Cameron pulled out of previous talks on party funding saying the trade unions had to be included in any cap on donations. He said "democracy does not come for free" and blamed the Tories for the breakdown of previous talks.
Conservative former chancellor Ken Clarke said the parties should reach an agreement along the lines recommended by Sir Hayden, but the key point was how trade union block grants to Labour should be treated.
Mr Heath said he believed consensus was possible, but said the Lib Dems would "not accept partisan legislation that deals with only one part of the problem, and not the other".
The prime minister has said there will have to be changes to the trades unions political levy so it is more "transparent".