Brown accused of 'dithering' on Hain row

Gordon Brown was today accused of “dithering” over the latest Labour funding controversy as embattled Cabinet minister Peter Hain clung to his political career.

Tory leader David Cameron said the prime minister should tell the Work and Pensions Secretary to address the issues surrounding his Labour deputy leadership campaign or face the sack.

Mr Hain is defying resignation calls after dismissing suggestions he tried to cover up donations to his failed bid as “absurd” in a statement yesterday.

But Mr Cameron insisted questions remained over the funding arrangements, suggesting that the Public Policies Forum (PPF), a mysterious think tank via which donations were channelled, could have been a “front”.

“If he goes on like yesterday I think his time will be up,” Mr Cameron said.

“It’s no good, when all these questions are being asked, just sort of come out and read a statement and scurry back indoors again.

“He has got questions he needs to answer, there are inquiries under way so I’m not jumping the gun, but he can’t go on as yesterday.”

Gordon Brown has stood by Mr Hain, with Downing Street confirming this weekend he continues to have the prime minister’s “full confidence”.

Speaking on BBC1’s The Andrew Marr Show, Mr Cameron said: “If I was in the Prime Minister’s shoes I would say to Peter Hain, ’look, you’ve got to get out there, you have got explain yourself, you’ve got to answer all these questions.

“’And if you can do that then maybe your job is safe, but if you can’t then you will have to go.’

“I think that’s where we ought to be. Instead, I sense that Gordon Brown is dithering over this issue.”

Mr Hain has been under fire over his failure to report £103,000 (€136,550) of donations to his deputy leadership campaign until this week.

In his statement, delivered to reporters outside his south Wales home, Mr Hain said all the donations to his campaign were legitimate.

“The notion that there was some attempt by me to hide anything is absurd,” he said.

“As with all candidates, money was raised by my campaign team. All those who contributed are people and organisations who are eligible and legally entitled to do so.”

He added that his Permanent Secretary had told him there was no conflict of interest between the donations and his ministerial jobs, which also include Secretary of State for Wales.

“I am more than happy for the inquiries by the Electoral Commission and the Parliamentary Commissioner for Standards to take their course and meanwhile I will get on with my Cabinet jobs,” he said in his statement.

But opposition parties said the statement raised more questions than it answered and maintained that his position was untenable.

Suspicions grew about the PPF, which provided £26,000 (€34,468) in donations and an interest-free £25,000 (€33,143) loan, as it emerged that the organisation employs no staff and has not published any work since its inception in December 2006.

MPs close to Mr Hain’s campaign have denied any knowledge of the PPF and Mr Hain said today he had not been involved in setting it up.

But he said it had been prepared to help cover considerable debts at the end of his unsuccessful bid for the deputy leadership of the Labour Party last summer.

When he belatedly declared its financial support to the Electoral Commission this week, he also provided details of the original sources of the cash.