Fraud claim MP could be reported

Daniel Kawczynski said he had been warned about postal fraud

The issue of parliamentary privilege has been raised in the Commons after an MP said a rival had been "implicated in various fraudulent practices".

Daniel Kawczynski, Conservative MP for Shrewsbury and Atcham, accused Labour's candidate for the seat, John Tandy, during a speech on Monday.

MPs cannot be sued for libel for any statement they make in Parliament.

Leader of the Commons Jack Straw said MPs who abused privilege could be referred to parliamentary authorities.

He was responding to Tamworth's Labour MP Brian Jenkins, who said MPs who misused privilege were "cowardly".

To use... this cowardly act of privilege only goes to detract from the status of every member of this chamber Brian Jenkins MP

He told the House that parliamentary privilege was designed to protect MPs from being threatened with legal action by the rich if they raised issues in the Commons .

He added: "It cannot be right if members raise allegations against ordinary working people in this country.

"To use... this cowardly act of privilege only goes to detract from the status of every member of this chamber."

Mr Kawczynski had said Labour Party councillors who worked at Shrewsbury's sorting office were "manipulating postal votes".

Mr Tandy, who is a county councillor and works at the sorting office, denied being involved in fraudulent practices and called for the MP to resign.

Mr Straw suggested Mr Jenkins should "talk to the Clerk of the House, and through him to the Speaker, about whether this is a matter which could be referred to the committee of privileges".

Royal Mail said it had policies to ensure staff did not allow outside interests to interfere with their duties.