Loans for Peerages Scandal is Blair’s Latest Headache

Tony Blair’s political career is dying the death of 1,000 cuts. Cut number 945 or so is the scandal over loans the Labour Party secured from 12 fat cats ahead of the last election. Some of them have turned up on the Honours List, and some people believe this is tantamount to selling peerages. Mr. Blair is determined, it seems, to be thrown out of office rather than leaving of his own accord.

As noted here last week, the Appointments Commission has stopped the titles, but the damage is done. Mr. Blair was elected, in part, because of the perception that the government of John Major that preceded his was, not to put too fine a point on it, sleazy. Mr. Blair is now faced with 37% approval ratings (as low as Mr. Bush’s) and almost three quarters of the people say his government is as sleazy (or worse) than Mr. Major’s.

Labour’s National Executive Committee, which has been cut out of the loop, reasserted itself yesterday, saying it would resume worrying about funding Labour. Party Treasurer Jack Dromey learned about the loans from the media, and Deputy Prime Minister John Prescott and Chancellor and future PM (if Mr. Blair keeps his word about quitting during this parliament) Gordon Brown didn’t know either.

The fact that rich people give politicians money isn’t news in Britain, or anywhere else. However, the rotting fish in this sad tale came from Dr. Chai Patel, who gave the party a £1.5m loan. Lord Levy, Mr. Blair's fundraiser, told Dr. Patel that a loan was better than a donation. The good doctor explained to the media, “I was told that [a loan] would be the preferred way to do it. And the reasons that have now been articulated are that a loan is not disclosable. It is always attractive if you want to give not always to have that necessarily disclosed.” Dr. Patel went on to say, “At no time has there been either an implicit or explicit conversation about any form of reward associated with this.” One accepts his word, but it plain looks suspicious.

This is not to say that the Tories or LibDems are any better; both of them have accepted loans. To their credit, the LibDems have named their donors. The Tories seem reluctant to do likewise. And perhaps that is the most awkward fact. The opposition parties can’t complain too much as they do the same thing

According to ex-Chancellor Denis Healey, who was Labour before Blair was born, “The first mistake was the war against Iraq, then foundation hospitals, a policy that had not been thought through, and top-up fees for university that will deter the poor from going and now the row over peerages that was unnecessary.” He concludes that Mr. Blair is making too many mistakes, and it’s time for Mr. Blair to go. He isn’t the only one.

© Copyright 2006 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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