Ministers 'must open up finances'

Opposition MPs want Lord Mandelson to reveal who runs his blind trust

Opposition MPs have accused some ministers - including Lord Mandelson - of concealing their financial interests behind so-called blind trusts.

The official list of ministers' interests has revealed the business secretary was one of five to have his affairs handled in such a way.

Investments are managed at arm's length, without the involvement of the owner, to avoid conflicts of interest.

Opponents want more openness and say the public should know who runs trusts.

The list of interests - promised by Prime Minister Gordon Brown shortly after he took office in 2007 - was published for the first time on Thursday.

It contains details of the interests of ministers and close family members which are, or could be perceived to be, directly relevant to their public duties.

We have a right to know who is looking after his interests. If it is by one of his mates then it is not really arm's-length at all Norman Baker Liberal Democrat MP

But the Tories said the 37-page document revealed few secrets about ministers' affairs - leaving Mr Brown's promises of greater transparency looking "threadbare".

It has also emerged that the ministers code of conduct has been amended since Mr Brown came to power, to remove a warning about the use of blind trusts.

Lord Mandelson's brief entry states that he is a patron of the NSPCC and will receive a European Commission pension at the age of 65.

It also refers to the transfer of his interests to the trust but provides no further detail.

Liberal Democrat MP Norman Baker said: "We need to know when he transferred responsibility to the trust and who manages it.

"We have a right to know who is looking after his interests. If it is by one of his mates then it is not really arm's-length at all."

Other ministers who make use of blind trusts include Trade Minister Lord Davies, Health Ministers Ben Bradshaw and Lord Darzi, and City Minister Lord Myners.

Shadow Commons leader Alan Duncan said: "Lord Mandelson and his colleagues are concealing their financial interests behind blind trusts.

"Gordon Brown's promises of increased transparency now look threadbare. People will be asking what his ministers have got to hide."

Clear principles

Asked about the Business Secretary's interests, Mr Brown's spokesman said: "The whole point is that Lord Mandelson doesn't know what they are and therefore it doesn't affect his decisions as a minister."

The Cabinet Office has acknowledged that the ministerial code was changed under Gordon Brown's premiership to take out all references to blind trusts.

Earlier versions had stated: "It should also be remembered that even with a trust the minister could be assumed to know the contents of the portfolio for at least a period after its creation, so the protection a trust offers against conflict of interest is not complete."

The Cabinet Office insists the changes were to make the code more accessible to the public - replacing complex guidance with a clear set of principles.

It said Mr Brown's independent adviser on ministerial interests, Sir Philip Mawer, scrutinised the declarations ahead of publication.

He was "satisfied that measures have been put in place where necessary to avoid a conflict of interest," a spokesman said.

The prime minister's only declared financial interest was a "small number" of shares in Raith Rovers football club, by which it is stated that they are "not for financial gain".

His predecessor, Tony Blair, used a blind trust. However, it sparked controversy in 2002 when it emerged that his wife Cherie used money from it to buy two flats in Bristol.

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