Mr Peter Mandelson dismissed claims yesterday that he had lied about the circumstances surrounding his controversial £373,000 "home loan" from former minister Mr Geoffrey Robinson, which forced both men to resign from Mr Tony Blair's cabinet two years ago.
But even as Mr Blair and Chancellor Gordon Brown rallied to Mr Mandelson's defence, Downing Street was fighting off Tory demands for an investigation into Mr Robinson's assertion that he had been "happy" to support Mr Blair's political office while Labour was in opposition - in apparent contradiction of repeated insistence by the trustees of Mr Blair's so-called blind trust that Mr Robinson had not been a contributor. In his new book, serialisation of which began yesterday, Mr Robinson, the former postmaster general, says Mr Mandelson's version of events is "not accurate", and insists Mr Mandelson (then trade secretary) initiated their discussion about his finances and "was looking for a loan".
However, the reinstated Northern Ireland Secretary insisted he had given "a full, faithful and factual account" to the House of Commons standards committee of how Mr Robinson had "volunteered" financial assistance, and that he regarded the matter "as closed".
Both the Prime Minister, Mr Blair, and the Chancellor, Mr Brown, rallied to Mr Mandelson's defence as Labour moved to contain the fresh focus thrown by Mr Robinson's book on the personality fault lines at the heart of the cabinet. In his book, The Unconventional Minister, Mr Robinson returns to the long-standing feud between Mr Mandelson and Mr Brown, dating back to Mr Mandelson's decision to back Mr Blair to succeed Mr John Smith as Labour leader; and describes Mr Mandelson as a "destabilising element" who stoops to "dubious tactics" to force through policies he supports.
Dismissing the Robinson claims as "pretty flat froth", a Downing Street spokesman said: "Peter Mandelson is a very effective minister . . . who is doing a very good job in what everyone acknowledges are difficult circumstances in Northern Ireland."
That message was underlined by a spokesman for the Chancellor, Mr Robinson's former Treasury boss. "Mr Brown has made clear on numerous occasions, both to Geoffrey Robinson, and in public, that it was not appropriate to write this book. He believes Mr Mandelson has been doing - and will continue to do - an excellent job as Secretary of State for Northern Ireland."
PA adds: Mr Mandelson repeatedly undermined the government's efforts to present a united front on the euro by pushing his own pro-single currency agenda, Mr Robinson claimed last night in the second instalment of his forthcoming book. Mr Robinson says that the Northern Ireland Secretary's interventions have created the incorrect impression of a deep policy rift between the Treasury and 10 Downing Street over the euro.