Robinson sparks euro row

Peter Mandelson is described as a divisive influence

New claims about Peter Mandelson's government role are likely to provoke fresh disputes within the Labour Party.

In the second instalment of a book by the former Paymaster General, Geoffrey Robinson, he accuses the Northern Ireland secretary of meddling in the government's policy on the single currency.

The claims, published in the Daily Mail, suggest Mr Mandelson caused a rift between officials at the Treasury and 10 Downing Street.

Robinson paid for Mandelson's London home

But despite the claims Mr Robinson told Newsnight he still believed Mr Mandelson should remain in the cabinet.

His book The Unconventional Minister has already re-opened the row about Mr Robinson's £373,000 loan to Mr Mandelson, which he used to buy a house, in Notting Hill

Both men were forced to resign when details of the loan were made public.

'Mandelson contradicted policy'

The new extract claims that once Mr Mandelson was restored to government as minister without portfolio, he deliberately set about undermining the united front on the euro.

After the Treasury issued a statement saying it was "extremely unlikely" Britain would join the single currency in 1999, Mr Robinson says his former cabinet colleague publicly contradicted the policy.

"There was really no need for this. Whenever Peter intervened in a major issue of this kind, it raised several questions.,'' said Mr Robinson.

Robinson tells his version of events

He goes on to say that he believes Mr Mandelson made the comment because of his personal pro-euro agenda.

Mr Robinson, a Labour MP with a vast fortune from private business interests, says Mr Mandelson is pursuing a private agenda which is "markedly different" from those of the prime minister and the chancellor of the exchequer.

"No one can ask Peter that he should not pursue his own ambitious agenda, but too often the briefings and leaks cause him to become a de-stabilising influence," he says.

The Conservatives have leapt on the new claims and Tory leader William Hague is expected to highlight the issue in a speech on Tuesday.

Senior Conservatives have called on the Commons Standards and Privileges Committee to investigate Mr Robinson's claims.

Mr Hague believes the book exposes Mr Mandelson as "the living embodiment" of a government culture of in-fighting, deceit, spin and cronyism.

The Labour Party is anxious to play down the furore surrounding Mr Robinson's book.

Real damage

A party spokesman said: "Once again William Hague cannot see a bandwagon without jumping on it without looking where it's going. This bandwagon is going nowhere."

Mr Robinson says unless Mr Mandelson drops his maverick line on the single currency he could do real damage.

He says the issue of Europe has brought down several previous governments.

"As things stand at present, I see no reason why it should be any different for Blair."