The Government today dismissed calls for an inquiry into whether Stephen Byers and other former Cabinet ministers had unduly influenced government policy by lobbying on behalf of business.
Harriet Harman told the House of Commons that urgent internal inquiries at the departments of transport, trade and health had found no trace of the impropriety alleged by Mr Byers.
The former Transport Minister was secretly filmed boasting to undercover reporters that he was a political "cab for hire" who had secured secret deals with serving ministers, obtained confidential information from No 10 and helped firms to manoeuvre around price-fixing rules. Mr Byers, a Blairite, said that he charged up to 5,000 a day.
Among Mr Byerss boasts was that he had come to a secret deal with Lord Adonis, the Transport Secretary, over the termination of National Express"s rail franchise contract, and that Lord Mandelson, the Business Secretary, had got regulations on food labelling amended after he intervened on behalf of the Tesco supermarket firm.
Multimedia Video: Dispatches programme Politicians for Hire Related LinksComment: "Cab for hire" politicians fell in trapIm like a cab for hire at up to 5,000 a dayRevealed: Labours cash for influence scandalTwo other former Cabinet ministers, Patricia Hewitt and Geoff Hoon, were also recorded by the undercover reporters from The Sunday Times and Channel 4 offering to undertake lobbying work, and Ms Hewitt was alleged to have influenced an appointment to an advisory group.
Ms Harman told the House of Commons that the Prime Minister had asked Sir Gus ODonnell, the Cabinet Secretary, today for assurance that the departments of business, transport and health had looked into the claims.
Ms Harman said: In each of the cases raised the departments have looked into these allegations and are satisfied that these decisions have been made without the impropriety alleged.
"They have assured the Cabinet Secretary that they are satisfied that there has been no improper influence on Government policy or ministerial decisions.
She added that the departments would publish statements detailing their findings today.
The revelations, in yesterday"s Sunday Times, have provoked reaction from all sides of the political divide, and have transferred the pressure over Westminster sleaze previously focused on Lord Ashcroft and the Tories onto the Government.
Lord Adonis issued a strongly worded statement to the House of Lords this afternoon, admitting that Mr Byers had tried to speak to him about the National Express franchise but categorically denying that he had been swayed by him.
Lord Adonis said: Stephen Byers had a brief conversation in the House of Commons with me last June about the East Coast Main Line. We discussed his experience in dealing with rail franchise difficulties when Transport Secretary.
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