Scotsman – News in brief – 13.07.06
Lord Levy, the Prime Minister's personal fundraiser, was yesterday arrested by
police investigating claims of cash for peerages and the tide of sleaze allegations came ever closer to Tony Blair, threatening the Labour government.The arrest of Lord Levy shocked senior members of the government and those who oppose Mr Blair predict that the affair could still bring down his premiership. Lord Levy was released on bail after being questioned at a London police station. Documents relating to millions of pounds loaned to Labour last year are believed to have been handed over. He denies all wrongdoing and has not been charged.
Urged on by Tony Blair, Lord Levy was involved in a fundraising drive in which Labour was loaned almost ¤14 million by twelve wealthy men preceding last year's general election. Four of the men were nominees for seats in the House of Lords, but the independent Lords Appointments Commission, on becoming aware of the loans, blocked these. Such was the secrecy surrounding the
loans that even the Labour Party treasurer Jack Dromey claimed he knew nothing of them. Earlier this year, in March, Mr Blair admitted at a Downing Street Press Conference, that he had known about and had approved of the loans. Sir Gulam Noon, one of the nominees is reported to have been told by Lord Levy to withhold information about his loan from the appointments commission and rewrote his nomination paper to omit his ¢250,000 loan.
Angus MacNeil, the Scottish National Party MP for the Western Isles, initiated the police inquiry into the "loans for peerages" affair when he asked Scotland Yard to investigate whether or not the Labour Party had broken a 1925 law that prohibits the sale of peerages and political honours. Scotland Yard last night disclosed that Lord Levy is also suspected of breaking the Political Parties, Elections and Referendum Act 2000. A law passed by Labour, which obligates political parties to publicly declare any major financial donations, but thanks to a loophole commercial loans need not be declared. Last night senior figures were privately in despair although neither Downing Street nor the Labour Party would comment on Lord Levy's arrest.
SNP leader, Alex Salmond, said: "The water is lapping up around the ankles of the Prime Minister. It is inconceivable, given the closeness of the relationship between Lord Levy and the Prime Minister, that Tony Blair was not aware of his fundraiser's activities. It is only a matter of time before the Prime Minister is asked serious questions."
Conservative shadow home secretary David Davis, was also predicting that Mr Blair would be drawn into the investigation: "I'm quite sure Scotland Yard will have to question Tony Blair because he is at the top of the honours process." Lord Levy's
spokesman last night issued a statement protesting his innocence and criticising the police. "Lord Levy has made it clear that he is ready at all times to co-operate with the police investigation," the statement said.
Fewer young Scots are entering higher education and numbers have dropped to the lowest point in almost a decade, giving rise to warnings that the Scottish economy could suffer unless more is done by ministers to ensure there are enough graduates to fill degree-level jobs.
Robin McAlpine, spokesman for Universities Scotland, said," Labour market projections tell us that all the new
jobs in the Scottish economy in the future are going to be graduate-level jobs. If we can't fill those jobs because students are being put off higher education, it could seriously hold back our economic development. Scotland has been too complacent about this for too long."
Assistant director of the CBI in Scotland, Alan Mitchell, said the problem could stem from the fact that in order to counteract a skills shortage, trades are currently offering high wages. He said: "If you're not producing sufficient levels of peoplhe skills required for the job, then that will have implications for the economy."
A Scottish Chambers of Commerce spokesman said it was vital that the Executive encourage enough school-leavers to go to university and ensures that courses relevant to the jobs market are chosenSNP's deputy education spokesman, Adam Ingram said student debt was to blame for the decline in school-leavers going to university. "It is no wonder young people are discouraged from studying when they look around and see a generation of graduates who are crippled by student loan debt," he said. An Executive spokesman yesterday pointed out that over the past two years the number of over-40s choosing to become mature students had increased.
Neil Coulbeck, 53, a former head of group treasury at the Royal Bank of Scotland (RBS), and a key witness in the trial of the "NatWest Three" was found dead in parkland, on the eve of their extradition to the United States today. David Bermingham, one of the NatWest Three, after hearing that his close colleague had been found dead was visibly shaken as he spoke at his mansion in Berkshire: "He was a superstar, a thoroughly decent, honest, professional guy and a very experienced banker."
Mr Bermingham, Giles Darby and Gary Mulgrew - are accused of an £11 million fraud in which their former employer was advised to sell part of a company owned by Enron, the former US energy giant, for less than it was worth.
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