01/02/07 - News section
No 10 kept Blair's questioning by police secret for a week
By BENEDICT BROGAN
Tony Blairs premiership was on the verge of complete paralysis on Thursday night after it emerged that he was interviewed a second time in secret by police investigating the cash for honours scandal.
Detectives questioned the Prime Minister for nearly an hour in Downing Street over claims that key aides tried to cover-up the affair.
See a chronology of the main events in the cash-for-honours scandal here
Read more...
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• Honours probe will wind down soon, says Blair
• Honours row deepens as Downing St's secret military-strength e-mail network is revealed
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In an extraordinary twist, the meeting last Friday was kept under wraps at the request of Scotland Yard until Thursday.
The news sent a fresh shockwave through the Government and the party, and left ministers in despair at what they say is a growing disaster that could destroy Labour.
With Downing Street looking increasingly like a crime scene and less like a seat of government, senior figures painted a devastating portrait of a discredited administration that is falling apart by the day.
Last night some ministers were casting around in desperation behind the scenes for a "grandee" who could persuade Mr Blair to go in the interests of the party.
They hope that friends of Mr Blair such as Lord Falconer or Peter Mandelson could be persuaded to intervene.
Sources in the Whips Office warned that a majority of Labours 352 MPs now want the Prime Minister to tear up his plans to quit this summer after a decade in office and go before Easter.
They claim Labour activists are deserting in droves, leaving the party facing meltdown in Mays council elections.
Supporters of Gordon Brown believe Mr Blairs refusal to budge could make it impossible for the Chancellor to rebuild the party when he takes over.
One minister said: "This administration is dying on its feet. We are paralysed by this criminal investigation at a time when it should be focused on a whole set of pressing national issues."
Insiders say the corrosive effect of a criminal investigation coupled with chaos at the Home Office, a financial crisis in the health service and a quagmire in Iraq has left the Blair administration with no credibility.
Former Labour leader Lord Kinnock warned the cash for peerages scandal has "damaged the political democratic process" and dismayed those who believe in "the integrity of British democracy".
Downing Street surprised Westminster by revealing that Mr Blair was interviewed last Friday but that police had asked for a news "blackout" as part of an operation targeting Lord Levy, Mr Blairs friend and chief fundraiser.
Commons leader Jack Straw denied Downing Street had deliberately misled the media about Mr Blairs interview, claiming officials had acted with "complete propriety".
The Labour peer was arrested for the second time on Tuesday on suspicion of conspiracy to pervert the course of justice, but it is understood detectives did not want him to know they had sought new information from the Prime Minister.
Lord Levy was re-arrested less than a fortnight after Mr Blairs close aide Ruth Turner, the Downing Street director of government relations, was detained on suspicion of perverting the course of justice.
Both she and Lord Levy were released on bail without charge.
It was reported that when he was re-arrested, Lord Levy was asked by police about notes of a meeting at which he discussed honours with senior Downing Street officials. The notes are believed to have been seized by police last year.
Mr Blairs second interview was conducted by Detective Superintendent Graham McNulty, the officer in day-to-charge of the cash for honours investigation.
Prosecution sources said there were "important operational reasons" why police effectively asked for a news blackout of the interview.
Officers were keen that Lord Levy was not given advance notice that he could be quizzed over the alleged Downing Street cover-up.
Sources say the investigation is now moving closer to Jonathan Powell, Mr Blairs chief of staff.
Those close to the inquiry expect it will be at least a month before police are ready to send a file to the Crown Prosecution Service, and that charges may not be put until after Mr Blair has left Downing Street.
Scotland Yard said Mr Blair was questioned as a witness "to clarify points emerging from the ongoing investigation".
Sources said it was possible Mr Blair may be interviewed for a third time possibly under caution.
Tory leader David Cameron said the latest development confirmed his belief that Mr Blair should quit now "for the good of the country."
In December Mr Blair became the first sitting Prime Minister to be questioned as part of a criminal investigation into claims that wealthy individuals who lent money to bankroll Labours 2005 General Election campaign were later nominated for honours.
Last night left-wing Labour MP Jeremy Corbyn said: "Many members of the Labour party are finding these episodes deeply embarrassing and very damaging. The sooner that Tony Blair sets a date for his departure, the better for all of us."
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