Lord Simon: High-flying business leader

Lord Simon tells BBC Radio's PM programme: "I was bound by the rules on insider dealing"

Lord Simon to Sell Controversial Shares

He said he would dispose of the shares "as soon as the arrangements can be finalised." His decision follows the publication of BP's second quarter results.

Lord Simon, the former BP chairman turned Minister for Trade and Competitiveness in Europe, has been the target of a dogged campaign by the Tories who claimed there was a potential conflict of interest because he had kept around £2 million of BP shares.

Shadow Trade Secretary, John Redwood: "It's a massive u-turn"

He would also sell the shares held in trust for him by BP as the company's board had agreed that in the circumstances these shares could now be released.

Lord Simon told reporters in London he would donate to charity any profit arising from gains in value of the BP shares from the time he became a minister in May to the date on which they are sold.

"I have acted in accordance with the letter and spirit of the rules throughout this affair. I have acted with complete propriety," said Lord Simon.

At no stage has anyone alleged that I have even had the opportunity to take decisions in my capacity as a minister which could in any way affect my shareholdings," he insisted. "I deeply regret the innuendoes put forward by the Opposition in this affair and hope they do not discourage other business people seeking a position in public life."

He said he could not have sold the shares before publication of BP's second quarter results because this would have been insider trading as he was chairman of the company until May.

But the Shadow Trade Secretary John Redwood insisted the decision to sell the shares was an acknowledgement that the Tories had been right all along.

He accused the Government of a "U-turn" over the shares and urged the President of the Board of Trade Margaret Beckett to make a "full statement" on the subject.

"Labour have performed an incredible U-turn on the issue of Lord Simon's BP shareholding," he said. "Until now we were told that he would not sell his shares before January 1988, and possibly not even then. The Government's change of heart is a vindication of our strong questioning on this issue."

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