British MP demands inquiry into Labour-Enron links

British Liberal Democrat Treasury spokesman Mr Matthew Taylor today called for an inquiry into the Labour Party's links with …

British Liberal Democrat Treasury spokesman Mr Matthew Taylor today called for an inquiry into the Labour Party's links with the collapsed US energy giant Enron and accountants Arthur Andersen.

Mr Taylor called for the Commons' Public Administration Committee to begin an investigation into the party's "extremely close links" with the two firms at the centre of the huge US financial scandal.

"Labour have chosen to build very close links with business on a pretty dubious basis where they have received money and help on the one hand from businesses benefiting very much from government policy on the other," he told BBC Radio 4's Todayprogramme.

"We know that in the United States Enron used extensive political contacts to seek to further its interests and there is good evidence of the same happening here in the UK," he said.

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Mr Taylor said Labour's ties with Andersen went even further. The accountants had been effectively barred from government business for 12 years, since the DeLorean scandal, until Labour came to power in 1997.

"They took the approach of building very close links with Labour - free work on building Labour economic policy between 1992 and 1997, extensive crossover of staff that has continued with Labour in government," he said.

Mr Taylor said an explanation was also needed from the Tory former energy secretary Lord Wakeham - now chairman of the Press Complaints Commission - who was an Enron director and sat on the company's audit committee. "I think that he also needs to say what his role was," he said.

PA