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Here is the full text of Peter Hain's cabinet resignation letter and Prime Minister Gordon Brown's reply.
Dear Gordon
As we discussed this morning, in view of the Electoral Commission decision today, I have come to the conclusion that I now have no alternative but to resign from my posts as Secretary of State for Work and Pensions and Secretary of State for Wales, in order to give myself the time and opportunity to clear my name.
I have made it absolutely clear that I very much regret reporting donations to my deputy leader campaign late, and I made this public as soon as I could.
When I discovered on 29 November last year that there was a problem, I saw the Electoral Commission as soon as I could and co-operated fully, including supplying all the details they asked for. I made a mistake, but it was an innocent mistake.
I am very grateful for the support you have shown me throughout this episode and for appointing me to your Cabinet where we have worked together to take forward the goals of social justice, equal opportunities and democratic reform in which I have always believed.
It has been a real privilege to head both the Department for Work and Pensions and the Wales Office, and a privilege to serve as a Minister in our Government since 1997. You will continue to have my absolute support.
I am fortunate to have the steadfast support of my wife Elizabeth, my parents and the whole of my family, and I am also very grateful for the support of my local Labour Party in Neath, of Labour MPs and Ministerial colleagues.
Best Wishes
Peter Hain
Dear Peter,
Thank you for your letter confirming your decision to resign from
the Government.
I recognise that, given the circumstances and your desire to clear
your name, this is the right and honourable thing to do. I also recognise
that in making this decision you have as ever put the country's interests
before your own.
I want to thank you for the valuable work you have done for the
Government over the last decade, most recently at DWP where you
have advanced the Government's work on opportunity and welfare
reform. I believe that, during your time in this post, you have
successfully put skills at the heart of our welfare policy.
You have also played a number of important Ministerial roles in
Government. Throughout your time in office you have shown real
commitment to representing the interests of Wales within Government.
And, of course, you played a vital role in Northern Ireland where you
should be proud of the contribution you made to securing peace and
stability.
Over many years you have always played an active role in politics
and I know that you will continue to make a contribution to public life in
the future. I would like to place on the record my thanks for your years
of public service.
Yours sincerely
Gordon Brown
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