Former Labour minister Geoffrey Robinson's financial dealings have been given a clear bill of health following a Whitehall inquiry.

The Department of Trade and Industry on Tuesday cleared the one-time paymaster general of any wrongdoing in his business dealings.

Trade Secretary Stephen Byers said his department would take no further action following its inquiry into Hollis Industries, one of the companies closely associated with the Coventry North West MP, one of the richest men in the Commons.

In a written reply to a parliamentary question, Mr Byers said: "There have been thorough inquiries in line with the department's normal procedures in these matters.

"These inquiries have now been completed and the solicitors acting for the Honourable Member for Coventry North West have been informed that the department does not propose to take any further action."

Mr Robinson, a self-made millionaire, had been accused by the Conservatives of stripping assets from Hollis Industries just before it went into liquidation, leaving little left for the creditors.

Mr Robinson welcomed the DTI's decision, saying: "I am pleased that this thorough scrutiny has shown the allegations were unfounded."

Questions remain

But Tory treasury spokesman David Heathcoat-Amory said he was "very surprised" by the decision.

He told BBC News Online that "serious questions" remained over Mr Robinson's dealings in Hollis industries.

The shadow chief secretary to the Treasury said: "I don't accept at all that he has been exonerated."

Mr Heathcoat-Amory, who raised many of the initial questions over the minister's business dealings and provided the DTI with some of the information used in its inquiry expressed surprise that the department had not been in touch with him on the issue.

He said: "I want answers to the questions have I already raised. We need to see this report."

Memoirs awaited

A friend of the former minister reacted to the decision saying: "Geoffrey maintained from day one that the allegations were untrue, and he can now get on with writing his book."

The former treasury minister was forced to step down from office almost a year ago after it was revealed he had lent £373,000 to the Northern Ireland Secretary Peter Mandelson to help him buy a house.

Mr Mandelson - then the trade secretary - also resigned but was brought back into government in October while Mr Robinson remains a backbencher.

Since Mr Robinson announced his intention to publish his memoirs the press has speculated over what revelations it may contain about any other financial contributions he may have made to the party and new allegations that may damage Mr Mandelson.

During his time as a minister Mr Robinson was forced to apologise to MPs for the non-disclosure of interests.