Fearing jam, Labour returns donation to race boss

On Monday, Labour said it had returned the donation describing the amount as being more than 5,000 pounds made in January by Bernie Ecclestone, president of the Formula One Constructors’ Association.

Blair’s aides called for a “rational debate” about party funding, but acknowledged scant support among voters for state funding of parties.

The Conservative Party, which lost power in May, refused to identify its donors and was regularly accused of accepting huge sums from foreign financiers. Labour gets multimillion pound (dlr) donations from labour unions.

Last week, in a turnaround from the platform on which it swept to power seven months ago, Blair’s Government announced the exemption for Formula One, by far the biggest recipient of tobacco sponsorship money for sport.Blair, who personally authorised the move, was persuaded by Ecclestone and other Formula One bosses in a meeting that if tobacco advertising was banned the sport would move to Asia, costing jobs.

Aides said Blair accepted the argument that the sport would be shown on television in Europe anyway, with the cigarette logos prominently displayed.Labour returned the Ecclestone money from other funds on the advice of a Parliamentary watchdog on standards in public life.Pressed on Friday by British newspapers about an Ecclestone donation, the Labour Party refused to answer, but privately contacted the watchdog, Sir Patrick Neill. He advised Labour to send back the money to avoid any impression of influence-peddling.

`This is somewhat difficult for us to deal with and the financial implications haven’t been worked out,” a Labour spokesman said on condition of anonymity.