Byers fights cover-up claims

Mr Byers may face Commons questions over the claims

Trade and Industry Secretary Stephen Byers is threatening to sue a national newspaper over allegations that he "buried" an official report.

A new book by investigative journalist Tom Bower, serialised in the Daily Mail, claims Mr Byers suppressed a report into the business affairs of former paymaster general Geoffrey Robinson.

Stephen Byers is consulting his lawyers to see how big a cheque the Daily Mail will be paying to charity

Prime minister's official spokesman

Mr Byers is understood to regard the claim as "a gross libel" and sought permission from Downing Street before instructing his solicitors to take action against the newspaper.

The newspaper said it would stand by its story in court if necessary.

BBC political editor Andrew Marr says it is almost unheard of for a serving Cabinet minister to sue on a political matter.

The Department of Trade and Industry has already dismissed the claims as "complete rubbish", saying the case was dealt with by officials and not Mr Byers.

The Daily Mail is serialising a biography of Mr Robinson, who resigned from the government following the disclosure of his home loan to Peter Mandelson.

The author alleges that the former treasury minister misled parliament when he denied receiving £200,000 from disgraced publishing tycoon Robert Maxwell.

The book claims to be able to prove that Mr Robinson received the money and that the findings of an official investigation were deliberately concealed by Mr Byers.

Downing Street backing

Downing Street says it has told Mr Byers it would be appropriate for him to instruct solicitors.

The prime minister's official spokesman said: "Stephen Byers is consulting his lawyers to see how big a cheque the Daily Mail will be paying to charity."

In a statement, Mr Robinson said: "Today's story has failed to present any new information.

"The claim that I was paid £200,000 as chairman of Hollis Industries has been made before and was fully investigated by the DTI who have today made their position clear about the Bower story.

"My own position has been absolutely clear throughout. Neither I nor any company associated with me received this money."

The Conservatives are calling for an inquiry into the matter and Liberal Democrat MP Norman Baker said he still intended to table a question in the Commons about the claims.

New investigation

He told BBC News Online: "I will still table the question. It will give Mr Byers an opportunity to put his views across in a parliamentary capacity."

He added: "I look forward with interest to see what happens."

Shadow trade and industry secretary David Heathcoat-Amory told the BBC's Newsnight programme he had already written to the Parliamentary Standards Commissioner to demand a new investigation.

Referring to the Standards and Privileges Committee, he said: "I think they were rather gullible before - they effectively took Geoffrey Robinson's word for it.

"With these new allegations and very comprehensive new evidence they will have to look at that again."

'No foundation'

A DTI spokesman said there was "no foundation" in the allegations.

"In January 1999, the permanent secretary advised the secretary of state that neither he nor ministerial colleagues should be involved in any inquiries...and any decisions which needed to be taken, but that the matter should be delegated to officials.

Mr Robinson resigned as paymaster general in 1998

"The secretary of state accepted that advice. Later that month a wide-ranging investigation was launched.

"In December, a decision was taken by officials that no further action should be taken.

"On 21 December 1999, Mr Byers answered a parliamentary question announcing the decision of the investigation, which had been reached by officials.

"The investigation was carried out under Section 447 of the Companies Act 1985.

"The legislation specifically prohibits publication of the findings of the investigation."