BRITAIN: The Tory leader, Mr Iain Duncan Smith, yesterday said the Cherie Blair property row raised questions about the integrity of Downing Street.
Mr Duncan Smith said the matter had to be settled or else it would sap at the heart of Number 10.
It was "critical" that Labour's director of communications, Mr Alastair Campbell, cleared up exactly what Downing Street spokesmen knew when they denied convicted fraudster Mr Peter Foster had helped Mrs Blair purchase two flats in Bristol.
Mr Duncan Smith told the BBC that there were "legitimate and genuine concerns" about the actions of the Number 10 press operation.
"My concern ... is that without integrity and legitimacy and honesty then government cannot function," he said.
"This must now be settled otherwise it saps at the very heart of what is the highest office - and the highest office-holder - in the land." The Tory leader said the issue now was how much the Downing Street press office had known before the denials were made.
Last weekend's initial denial was corrected on Thursday when the Daily Mail published e-mails confirming Mr Foster's negotiating role. Mrs Blair subsequently issued a statement and apologised for any "misunderstanding".
Mr Duncan Smith made it clear that he was not going to call for any resignations but said the stories "call into question how much was known before the denials were made".
He said it was a matter of some "genuine concern" that Labour's director of communications, Mr Campbell, was "almost briefing against" the Prime Minister's wife.
"What worries me is that he seems to be indicating that he knew all along about some major concerns about these relationships. If so, it does bring into question elements about how much knowledge was there before those denials were issued over a week ago." However, Mr Duncan Smith refused to comment on Mrs Blair's involvement directly, saying that it was a "personal matter".
Earlier the Liberal Democrat leader, Mr Charles Kennedy, added his voice to the fray when he questioned Downing Street's handling of the issue.
"I do think there's a legitimate issue about the extent to which the Downing Street machine has handled this sensibly and there are probably questions to be asked there," he said.
"The key question is quite simply, are they giving ... parliamentary and political correspondents and journalists an accurate account?
"If there's a question of whether people are being consciously misled, that is something that raises more serious issues."
The fall-out from the row dominated yesterday's newspapers, with the Mail on Sunday claiming that Mrs Blair was to make a public display of loyalty to her "lifestyle guru" Ms Carole Caplin by taking her as her guest to a carol concert.
The paper, which broke the story last weekend, said Mrs Blair would take Ms Caplin, Mr Foster's girlfriend, to the event. But Downing Street insisted tha it did not yet know who would accompany her. - (PA)