Letwin defends bank directorship

Letwin: 'I've done nothing wrong'

New shadow chancellor Oliver Letwin sees no reason why he should quit his directorship with a top merchant bank.

Labour MP Kevin Brennan says a possible conflict of interest with his new post means he should leave NM Rothschild.

But Mr Letwin, who lists his position on the register of MPs' interests, says he has done nothing wrong.

"There are strict rules ... if they change, I shall obey whatever rules are next produced", he told BBC Radio 4's Today programme.

Perception

The issue was raised as Mr Brennan argued that MPs should consider setting up a code of conduct for shadow ministers along with those in government.

He said he "was very surprised" that Mr Letwin had not stepped aside from his directorship when he was appointed shadow chancellor - or at least during the time he holds that position.

I think it is actually valuable that I know something as current knowledge of how industry and the city are actually fairing under this government Oliver Letwin

"It is perception that counts in politics, and although he is not a minister of the crown, he is occupying the position of shadow chancellor, one where he is going to be dealing with matters relating to the City, relating to business and investments and so on, and criticising and formulating alternative government policy on that," said Mr Brennan.

"I would have thought that the potential for a conflict of interest here would have meant it would have been better for him to stand aside," he told Today.

"Imagine in Opposition if Gordon Brown had been a paid official of a trade union? What would the Conservative Party have said about that?"

Representative

But Mr Letwin retorted that he was following the rules as "punctiliously" as he had when he was formerly shadow chief secretary to the Treasury.

"I think Parliament has to decide about these things - if the rules change, I will change my position obviously," he told Today.

"My view is it would be a pity if Parliament were to stop people who are not ministers from having those kinds of interests because I think it is actually valuable that I know something as current knowledge of how industry and the city are actually fairing under this government.

"I don't have access to 600,000 civil servants as the chancellor does.

"I have to try to get information in other ways and I think as you watch my performance ... you will find that I am defending the interests of people very widely - people in industry, people who want to keep their jobs, people who are worried about their pensions and their mortgages.

"I doubt that anyone will be able plausibly to suggest that I am favouring any particular interest."

Low tax

Mr Letwin was switched from the home affairs brief to become shadow chancellor in new Tory leader Michael Howard's reshuffle of the top jobs.

While the Tories favour a low tax economy, there would be no quick fixes on tax, he said.

Instead, his party's priority was to engage in "serious, structural reform" of public services, which currently "lag the world", he said.

"I can't give any kind of guarantee of a particular tax cut at a particular time, partly because we absolutely have to get structural reform of the public services first and partly because we have no idea what kind of fiscal books, what kind of tax and spending Gordon Brown is going to leave us with.

"At the moment we know he has built up a considerable pile of debt, which of course is deferred tax - tax that will have to be raised later."