BBC in Row over Billionaire Lord Ashcroft doco

[Jan Klimkowski]

Hmmmm - is that the sound of Pipsqueak Tory fixer William Hague covering his ass...

Hague only found out about Ashcroft tax deal a few months ago

William Hague says he has only been aware of the Tory deputy chairman's tax status for the last few months and 'was keen to support him in making his position public'

William Hague only found out a few months ago that the multimillionaire Tory donor Lord Ashcroft had renegotiated the terms under which took up his place in the House of Lords, the former Conservative leader revealed today.

In an interview for BBC Radio 4's World Tonight programme, Hague said he only recently discovered the terms of the arrangement that allowed Ashcroft to remain a "non-dom" for tax purposes.

Listen to Hague on the World Tonight here Link to this audio In 2000 Hague suggested that Ashcroft would become a full UK taxpayer when he took his seat in the Lords. But this week Ashcroft revealed that he has been a non-dom for the last 10 years, after a deal was agreed at the time his peerage was awarded.

In the Radio 4 debate, Hague was asked if the "first he had known" of the arrangement was when Ashcroft revealed it on Monday.

Hague said: "Well I knew in advance of that." Robin Lustig, the presenter, pressed Hague on exactly when he had found out. Hague replied: "Over the last few months I knew about that and of course I was keen to support him then in making his position public."

In 2000 Ashcroft offered Hague, who was then Tory leader, a "clear and unequivocal" assurance that if Ashcroft was granted a peerage he would be a permanent resident in the UK by the end of that year. That letter was passed to the House of Lords appointments committee, which was scrutinising his nomination.

Hague, the shadow foreign secretary, was speaking during a debate at Chatham House organised by the World Tonight with the foreign secretary, David Miliband, and the Liberal Democrat foreign affairs spokesman, Ed Davey. After the debate Hague left last and by the back door, to avoid reporters gathered outside.

Speaking immediately after the debate, Davey told the Guardian: "There are two questions we now need to know. How long is a few months? Because he has been going round on the record defending Ashcroft's status and secondly, when and what visits were made with, and paid for by, Ashcroft."

Earlier today Harriet Harman, the deputy Labour leader, called on David Cameron to sack Hague or Ashcroft because they could not both be right in relation to what they had said about the promises made when the Tory deputy chairman received his peerage.

Harman, who was standing in for Gordon Brown during prime minister's questions, asked Hague what had happened to the extra taxes that had been promised.

"The shadow foreign secretary stands here without a shred of credibility," Harman said.

Insisting Hague and Ashcroft could not "both be right", she added: "One of them must go."

In the Commons Hague, who was standing in for David Cameron, accused Labour of being in a "desperate panic".

He also attacked Labour's record on party funding, telling her: "People in glass houses shouldn't throw stones."

Hague became central to the row after the Guardian published details of letters between him and then prime minister Tony Blair from 1999 and 2000.

In a letter following the political honours committee's 1999 refusal of Ashcroft's nomination for a peerage, Hague acknowledged that one reason for their decision was that "Mr Ashcroft was a tax exile".

He confirmed that Ashcroft was "non-resident for tax purposes" but told Blair: "He is committed to becoming resident ... This decision will cost him (and benefit the Treasury) tens of millions a year in tax yet he considers it worthwhile."

Electoral Commission records suggest that the Conservatives continued to enjoy gifts from Ashcroft until December last year.

In the last three months of last year Ashcroft donated, via Flying Lion LTD a company he owns which is based in Bermuda, three separate trips: a £5,097.98 visit to the US, £4,558.90 for a visit to Doha and a £10,736.50 trip to China and Hong Kong.

All three donations were made to Conservative Central Office, but it is not clear who in the party's headquarters enjoyed Ashcroft's hospitality.

He also donated another £80,987 via Bearwood Corporate Services, a British-based company he owns, which is currently under investigation by the Electoral Commission, which is attempting to establish whether it was in fact operating as a fully fledged company at the time of the donations.

http://www.guardian.co.uk/politics/2010/...d-ashcroft