Blair stands by Blunkett, family to dispose of shares

Blair stands by Blunkett, family to dispose of shares

	Published : Tue, 01 Nov 2005 01:35 By : Andrew Stead Print this Story

Downing Street has defended David Blunkett, the work and pensions secretary, for a probable beach Ministerial Code of Conduct when he became a director of a DNA testing firm for a period of two weeks.

Furthermore, Blunkett, who has been in hot water before and in an attempt to diffuse the situation, issued a statement tonight stating that the shares he purchased would be disposed of to avoid any future problems.

Mr Blunkett had failed to seek advice from an independent watchdog before briefly becoming a director of a DNA testing firm following his resignation as Home Secretary last year. Mr Blunkett was briefly a director of DNA Bioscience for two-weeks before the general election. When he was re-appointed to the Cabinet by Tony Blair, he resigned from his post there.

Shadow leader of the house Chris Grayling is leading the call for an inquiry into the matter. He said: “There now needs to be an urgent inquiry into Mr Blunkett's conduct in relation to his business interests. Mr Grayling has also written to Cabinet Secretary Sir Gus O'Donnell about the matter. In fact, Grayling was himself instrumental in pressurising Mr. Blunkett to resign from the post of home secretary last year.

While the Tories are baying for his blood by calling for an immediate inquiry by Sir Gus O'Donnell, the Cabinet Secretary, over breach of conduct, Tony Blair is reportedly giving David Blunkett "his full support". In fact, only on Sunday, newspapers reported that Mr Blair and Mr Blunkett had some serious disagreements over the plans for welfare reform.

Mr Blair's intervention is seen as an attempt to strengthen Mr Blunkett’s credibility by ensuring that he is not compelled to resign for the second time within a year from the Cabinet.

It was also disclosed that Mr Blunkett had bought a three per cent holding for his sons in the DNA firm. That stake is reportedly worth between £60,000 and £300,000 if the firm is floated next year on the stock market.

The question now is will DNA Bioscience get any CSA or Government contracts in the future? If they do then more trouble is sure to follow. Was this simple coincidence that Blunkett became Minister for Work and Pensions just after he bought shares in a Company with a vested interest in the policies of the CSA? There is little point speculating and you can make up your own minds.

Another item for thought and follow up perhaps is how many other MPs have done the same or similar things?