The Mittal "steelgate" affair highlights the need for a new public standards watchdog, believes the chairman of the influential public administration select committee

Labour MP for Cannock Chase, Dr Tony Wright, argues that the drip-drip of "sleaze" allegations are doing "enormous damage" to public confidence in political life and considers recent events to have shown the need for the public standards commissioner, his select committee first called for in a report last year.

"I suspect that some people would prefer to have allegations hanging in the air rather than properly examined, but this is now doing enormous damage to confidence in the political system," he said.

"If something positive is to come out of recent events, then this should be the early setting up of a public Standards commissioner."

A commissioner, Wright says, would subject allegations of improper conduct to scrutiny, allowing watchdog to "decide if there was the basis for an investigation, and conduct one if there was sufficient evidence".

"People who make allegations of impropriety on the part of ministers, including the prime minister, should put up or shut up. If you have an allegation about party funding, donations linked with politicians, there is no mechanism you can place that under," he said.