Mandelson wants 'ethics commissioner'

Peter Mandelson, the former secretary of state for Northern Ireland, stepped into the row over Labour Party donors yesterday by calling for the creation of an independent "ethics commissioner" to oversee ministers.

His remarks came after David Blunkett, the Home Secretary, became the latest senior minister to back state funding of political parties, claiming the move was "inevitable". The Tories also called on the Wicks Committee on Standards in Public Life to review alleged links between party funding and government policy.

Mr Mandelson, who was forced to resign twice from the Cabinet in the last parliament, said the latest controversy over a £32m vaccine contract awarded to a Labour donor's company "strengthens" the case for state funding. "Where there are legitimate allegations ... there should be some independent machinery, some ethics commissioner ... who can look at these things with complete objectivity," he said.

Mr Blunkett and John Prescott, the Deputy Prime Minister, bothbacked state funding. Downing Street said it would "study [Mr Mandelson's] remarks carefully". The Department of the Environment, Local Government and the Regions, is also looking into the issue.