Ministers face new conduct rules

Perceived interest conflict caused Mandelson's first exit

Tony Blair has set out new rules for ministers to avoid the kind of conflict of interest which saw Peter Mandelson resign over his home loan from ex-paymaster general Geoffrey Robinson.

Government officials say one of the key changes in the new ministerial code, published on Friday, is to clarify the rules on ministers declaring private interests.

We are all here to serve and must serve honestly and in the interests of those who gave us our positions of trust

Tony Blair

They point also to the strengthening of provisions on the way ministers are held to account by parliament.

That is currently a live political issue in the wake of the backbench revolt over the government's attempts to sack two key select committee chairmen.

Step-by-step guide

The new edition of the code, which is revised after every general election, outlines a series of "systematic steps" to avoid "the danger of an actual or perceived conflict of interest" which could lead to allegations of sleaze.

New ministers now have to draw up a full list of any interests - including those of their spouses, partners or children aged under-18 - that could prompt such conflict.

Blair will act as ultimate judge

And for the first time, the code means they have to discuss the list with their permanent secretary - the most senior civil servant in their department.

While ministers can get advice from those civil servants or even from the prime minister himself, in the end they must take "personal responsibility" for their arrangements.

The code says: "Ultimately, it is the responsibility of ministers individually to order their private lives in such a way as to avoid criticism, and the final decision about what action to take to achieve that is theirs."

Peter Mandelson's first resignation as a minister came in December 1998 over the £373,000 loan he took from Geoffrey Robinson to buy a house in Notting Hill.

Then trade secretary, he had kept out of his department's investigation into Mr Robinson's business affairs and he denied wrongdoing.

But his crucial mistake was seen as failing to tell his permanent secretary about the loan.

Blair the umpire

In the wake of the Hinduja passport affair, which prompted Mr Mandelson's second resignation earlier this year, a former chairman of the committee on standards in public life called for the code to be re-written.

The new code follows Lord Neill's recommendation in making Tony Blair the "ultimate judge" of the standards of behaviour expected from ministers.

Blair will act as ultimate judge

Mr Blair says in his introduction to the code he expects all ministers to keep to the "letter and spirit" of the rules.

"In issuing this code, I should like to reaffirm my strong personal commitment to the bond of trust between the British people and their government," he says.

The revised code also emphasises the need for ministers to give "accurate and truthful" information to parliament.

It says: "Ministers should be as open as possible with Parliament and the public, refusing to provide information only when disclosure would not be in the public interest."

The prime minister's official spokesman said the code brought together for the first time guidance for both ministers and special advisers.

The government also published on Friday a pay scale for special advisers.

So far, only three - communications director Alastair Campbell, Downing Street chief of staff Jonathan Powell and drugs czar Keith Hellawell - are included in the top scale of over £90,000 a year.