BRITAIN: Pressure was growing on Labour over its links with failed US energy company Enron yesterday as the Conservatives and Liberal Democrats demanded an inquiry into big business and energy policy.
As the Liberal Democrats tabled questions seeking details of meetings between ministers and Enron's former auditor, Arthur Andersen, the Tories described links between Labour and Enron as a candidate for a "cash-for-access" scandal to rival their own problems with sleaze.
Demands for an inquiry into whether Enron's access to ministers was directly linked to its sponsorship of Labour events and changes in energy policy emerged as a former executive with Enron Europe, Mr Ralph Hodge, revealed the company spent £36,000 sponsoring Labour events to gain access to the heart of government.
In a political climate described by Mr Hodge as one of "sponsorship and donations" leading to ministerial access, Enron Europe lobbied Labour ministers, including former trade and industry secretaries Mr Stephen Byers and Mr Peter Mandelson, between 1998 and 2000 to end the moratorium on building gas-fired power stations.
The moratorium, which Labour had previously stated was a temporary measure, ended in April 2000 and the Prime Minister's spokesman insisted yesterday there was nothing to hide: "We would refute absolutely that there has been any impropriety. Yes, Enron representatives have met Government ministers from the Department of Trade and Industry they are not alone in that and at some meetings they were there with representatives of other companies." A Labour Party spokesman described allegations of possible wrongdoing as "completely without foundation".
Although stressing that the details about links between Labour, Enron and Arthur Andersen were "allegation", the Conservative vice-chairman, Mr Tim Collins, said: "What we are hearing is that access to ministers and even possibly changes to Government policy are directly linked to donations to the governing party."
Tabling questions about Labour's use of financial advisers from Arthur Andersen in drawing up fiscal policy in Opposition, a Liberal Democrat spokesman, Mr Matthew Taylor, accused Labour of building links with business on a "pretty dubious basis."
He told BBC Radio 4 that Arthur Andersen, barred from government contract work following the DeLorean car scandal and later reinstated, had benefited from its links with Labour, which continued when the party came to power in 1997. In a statement, Arthur Andersen insisted suggestions that it was unusually close to Labour were "unfounded".