Apology call over peerage claim

Mr Hain said the peerage accusation was a 'preposterous lie'

Labour is demanding Plaid Cymru apologises after it accused Peter Hain of offering the MP Peter Law a peerage not to fight the last election.

Elfyn Llwyd MP made the allegation in the Commons but it later emerged that Mr Law himself had denied ever being offered a peerage in a TV interview.

Mr Hain, the Welsh Secretary, denied the allegation, saying it was a "preposterous lie".

But Mr Llwyd insists that Mr Law did tell him a peerage offer had been made.

It emerged that Mr Law himself denied having been offered a peerage in a TV interview last December.

He told ITV Wales' political programme Waterfront then:¿ I have to say that's all very colourful and wishful thinking.

I hope we can now get back to some decency in politics. Peter Hain

"No-one ever offered me a job in the House of Lords and no-one ever offered me any other jobs.

"That's all very theoretical and fairyland stuff."

Hundreds of people - including First Minister Rhodri Morgan and the leaders of the other political parties in Wales - attended Mr Law's funeral in Blaenau Gwent on Thursday.

Mr Llwyd's allegation was made during Commons business questions and he said Mr Hain was acting with the authority of Tony Blair.

Mr Llwyd told MPs: "New Labour, in an effort to prevent him from standing for Parliament, offered him a peerage.

Peter Law overturned the largest Labour majority in Wales

"The man named as being responsible is the secretary of state for Wales who made the offer on the specific authority of the prime minister."

Mr Hain immediately accused the Plaid Cymru MP of "cowardice" for not putting "this lie" directly to him in the House of Commons on Wednesday.

But speaking after attending his own father-in-law's funeral Mr Hain said the footage from the Waterfront programme exonerated him.

In a statement, the Welsh Secretary said; "Earlier today I said I was at a loss to understand why allegations about me offering Peter Law a peerage were being made today when he never made any such allegations himself.

"Indeed in an interview he gave in December 2005 for the ITV Wales Waterfront programme he explicitly denied that any such offer was made to him.

"I hope we can now get back to some decency in politics."

However, Mr Llwyd said he was standing by his claim that someone offered the late MP a peerage, despite Mr Law's denial in the ITV Wales interview.