Hain: I have nothing to hide

Peter Hain has said it is "absurd" to claim he sought to cover up donations to his Labour deputy leadership campaign.

In a statement released on Saturday, the Wales and work and pensions secretary insisted he would seek to "get on" with his cabinet jobs.

He remains under pressure, however, with some political opponents calling for his resignation from the cabinet.

The row centres on his failure to declare £103,000 in donations to his unsuccessful bid to become Labour deputy leader.

Attention has focused on the role of the Progressive Policies Forum think-tank, which gave money from its backers straight to the campaign.

Hain said: "The notion that there was some attempt by me to hide anything is absurd."

He added that all donations had come from "people and organisations who are eligible and legally entitled to do so".

The minister faces investigations from both the Electoral Commission and the parliamentary standards commissioner.

The donations should have been declared to the commission and recorded in the Commons register of members' interests.

Hain said he had now "provided full declarations of donations" to the watchdogs and "unreservedly apologised to them for failing to register some of the monies on time".

Explaining how the situation arose, he said: "After the campaign had finished, the extent of outstanding debt became apparent to me.

"I was not involved in establishing the Progressive Policies Forum but it was prepared and able to assist in making donations to the campaign and did so.

"Of course, when I reported these late to the Electoral Commission, I provided full details.

"I am now making immediate arrangements to repay £25,000 of the monies raised by or through the PPF as it came in the form of an interest-free loan.

"I have checked with my permanent secretary whether there is any conflict of interest between my ministerial duties and any of the donors to my deputy leadership campaign as recorded in my statement of January 10.

"He is satisfied that none of these donations fell within the ambit of donations relating to private interests within the terms of the ministerial code, and accordingly, he sees no conflict between them and my ministerial responsibilities.

"I apologise for the embarrassment caused by poor administration and lack of early and clear disclosure.

"However, I make no apology for being a committed candidate in Labour's deputy leadership campaign or for raising the funds necessary to run a modern campaign."

Hain added that while the inquiries continue "I will get on with my cabinet jobs".

John Underwood, who was closely involved in both the deputy leadership bid and the think-tank, has also been at the centre of the row.

He said the transfer of funds from the think-tank to the campaign was "entirely permissible".

All those involved have rejected suggestions of deliberate concealment, saying there was no intention to break any rules.

Energy minister Malcolm Wicks said Hain was in a "difficult position".

But he told BBC Radio 4 that the cabinet minister is a man of "great integrity".

And a Number 10 spokeswoman insisted on Friday: "The prime minister has full confidence in Peter Hain."