Blair steers into new furore over motor racing

Tony Blair's links with the world of motor racing have dogged his leadership since he took office.

It was only four months after Labour came to power in 1997 that the Prime Minister accepted a £1m donation on behalf of his party from Bernie Ecclestone, the Formula One chief.

But after an embarrassing furore over sleaze and widespread accusations that the money had bought the sport special favours, Labour was forced to return the cash.

The public standards watchdog instructed Downing Street to return the cheque to Mr Ecclestone after it emerged that the Government had successfully lobbied in Brussels for Formula One to have extra time to implement a Europe-wide tobacco advertising ban.

Mr Blair was drawn into the "cash for ash" storm after it became clear that he had personally intervened to back the exemption against the wishes of the then public health minister, Tessa Jowell.

The Prime Minister was forced to make an embarrassing apology on television over the affair – but stopped short of admitting that there was anything wrong in accepting the cash.

In a highly unusual confession, he admitted that he took "full responsibility" for his handling of the matter, but said he would "never, ever do something wrong or improper or change a policy because someone supported or donated to the Labour Party".

Despite the Prime Minister's unprecedented apology, the Formula One saga has continued to cast a pall over Labour's reputation for propriety and has dogged the issue of party funding.

Questions have also been asked at Westminster about the decision of some politicians to accept lavish hospitality from the motor racing industry.

Mr Blair was rebuked by the Commons standards watchdog for failing to declare that he and his family had been to the British Grand Prix at Silverstone as a guest of the Federation Internationale de L'Automobile.

Mr Blair declared the free trip, taken when he was leader of the Opposition in 1996, in the register of member's interests in 1999. But an MP complained that he had failed to do so in previous years.

Mr Blair was not the only minister to accept hospitality at Silverstone. Kate Hoey, who was minister for sport between 1999 and 2001, declared that she had been there in July 1999 as guest of Ferrari.

And John Prescott was criticised when, as transport secretary, he used a helicopter to beat the traffic jams to get to the 1999 Grand Prix. After presenting a trophy to the Scottish driver David Coulthard, Mr Prescott re-boarded the helicopter to beat the departing traffic.

Against this background of cash and favours, opposition MPs reacted with amazement yesterday to learn that Mr Blair and two of his ministers had intervened for a second time on behalf of Formula One. The fresh intervention was intended to ensure that a new road was built in time for this month's Grand Prix at Silverstone.

The two episodes had a key element in common: the veiled threat that Formula One, which does much of its research and mechanical work in Britain, would withdraw from the country and go abroad.

During the tobacco furore, Formula One management warned that a Europe-wide ban would force them to move to the Far East where there are fewer restrictions. Downing Street supported this analysis, claiming that it had safeguarded 50,000 jobs by successfully arguing for a Formula One exemption from the ban. This figure was later challenged by a House of Commons select committee, which said 8,000 jobs would be affected by such a move.

The Silverstone racetrack saga unfolded in a similar fashion. The sport's ruling body had threatened to withdraw completely from Britain if the infrastructure was not improved in time for this year's race.

The road and parking conditions around the circuit were sub-standard and had led to racegoers becoming waterlogged in the car park and beset by traffic jams, it said.

It took the intervention of three ministers to get the project on track in time and ensure that the Government's relations with Formula One racing were not left floundering in the pits.