Lord Simon: Shareholder and minister

Controversy Over 'Industrialist-Turned-Minister' Continues

Lord Simon was one of Britain's most prominent businessmen, when he was invited by Prime Minister Tony Blair to join his government.

The minister owns an estimated £2 million of BP shares, although he has undertaken not to trade them for the next six months. The Tories say he should have deposed of them. 35 Conservatives have signed a Commons motion saying Lord Simon should go.

One of the signatories, Tory MP Julie Kirkbride, says that Labour must be held up against its own standards

The Conservatives say that Lord Simon has neither observed correct procedure as a minister - he should have sold his BP shares or set up a blind trust - nor correct procedure as a member of the Lords: they say he should have specifically declared his BP holding.

The Department of Trade and Industry flatly denies both charges saying it is up to a minister to make his own assessment of what should be done to remove a potential conflict of interest, in consultation with the Permanent Secretary of his ministry. Lord Simon pledged that he will not trade in his shares and will not be involved in departmental business which could affect BP.

The Cabinet Secretary, Sir Robin Butler, is said to be content with the arrangements.

A group of 25 newly-elected Labour MPs have responded with a counter-motion expressing support for Lord Simon. They suggest that the Tories are motivated by pique that a 'senior, successful and respected' businessman has joined a Labour Government.

Tory politicians however accuse the Government of hypocrisy and point to Labour's time in opposition, when the party attacked Tory ministers who moved smoothly from Government to boardroom.