BRITAIN:Peter Hain has become the first minister forced to quit Gordon Brown's cabinet after the Electoral Commission asked police to investigate his late declaration of £103,000 (€138,000) in donations to his failed Labour deputy leadership campaign.
While his position had seemed untenable, Mr Hain's resignation yesterday as secretary of state for work and pensions - and also Wales - still took Westminster by surprise.
It also took the edge off the Brown government's partially successful new year relaunch - turning the spotlight back on the second ongoing police investigation into Labour's "proxy" donations, and separate investigations by the Electoral Commission into individual donations received by Commons leader Harriet Harman and Scottish Labour leader Wendy Alexander.
Prime minister Brown also found himself under attack from Conservative leader David Cameron for having permitted Mr Hain to fight for survival from within the cabinet only, in the end, to have to accept a resignation Mr Brown yesterday described as "right and honourable" and in the best interests of the country. Mr Brown had previously suggested Mr Hain had been guilty of "an incompetence" rather than any wrongdoing in relation to the financing of his deputy leadership bid last summer.
Mr Hain himself insisted yesterday he had been guilty of "an innocent mistake" while vowing he was standing down to take time and clear his name.
However, there seemed no prospect of a return to the political front line for the former Young Liberal activist turned "New Labour" insider, as Mr Brown promoted a succession of "thirtysomething" ministers and recalled former Northern Ireland secretary Paul Murphy to cabinet as Welsh secretary. Mr Hain, meanwhile, who has not yet been accused of any offence, appeared to face the prospect of police questioning as a suspect in an inquiry to be conducted by detectives from Scotland Yard's economic and specialist crimes command.
Confirmation of that inquiry came after the Electoral Commission announced that, following a review of the information provided by Mr Hain, and discussions with the Crown Prosecution Service, it had referred matters to the police for them to consider whether an investigation should commence.
Mr Brown acknowledged Mr Hain's "vital role" in helping secure last year's DUP/Sinn Féin agreement to restore power- sharing government to Stormont. In a reply to the letter of resignation, the prime minister added: "Over many years you have always played an active role in politics and I know that you will continue to make a contribution to public life in the future."
Fine Gael last night paid tribute to Mr Hain, saying "the Irish people owe him a debt of gratitude for his Trojan work" on Northern Ireland. The party also charged that his decision to resign showed an upholding of standards that Taoiseach Bertie Ahern does not believe in.