The £4m apology: fashion industry backs model

Kate Moss has held on to her £4m modelling contracts after being photographed snorting cocaine, it emerged last night, despite strong criticism from MPs and anti-drugs groups.

One deal, with the international fashion store H&M, pays Moss a reported £500,000 a year. The firm plans to star her in a new campaign modelling a Stella McCartney collection. A spokesman said she had apologised and would be given a second chance.

But there are reports that the publisher Jefferson Hack, father of Moss's three-year-old daughter Lila Grace, may seek custody, citing concern about Moss's lifestyle.

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And the Conservative MP Ann Widdecombe said that when someone was caught as blatantly as Moss "there needs to be a prosecution". But the Metropolitan Police said a photo was not enough to base legal action on. A spokeswoman said the incident pictured in the Daily Mirror, which allegedly involved Moss snorting cocaine in London, had not been reported to the force.

But Moss appears to have admitted the illegal act by her apology. "We strongly disapprove of her actions," H&M spokeswoman Liv Asarnoj said. "We have strict policies for models. They should be healthy, wholesome and sound, and we are strongly against drug abuse. We made this clear to Kate Moss."