THE BRITISH government faces close questioning in the Commons today over claims about Conservative Party funding.
Opposition parties are demanding a statement from the Prime Minister, Mr Major, about a report in the Observer that he was being "hired out" to donors by a club established to raise party funds.
The report claimed that a property tycoon, Mr John Beckwith - said to be interested in securing big contracts from both the Ministry of Defence and the Social Security Department - chaired the Premier Club.
The newspaper also claimed that its reporter, posing as an assistant to a wealthy businessman, was told by the club membership secretary, Mrs Frances Prenn, how to disguise his gift in his company accounts by listing it as "entertainment".
Tory sources confirmed that the club was established last year to raise funds, and that Mr Beckwith was a leading light, but disputed some details.
The Labour Party's deputy leader, Mr John Prescott, said that Mr Major should now back Labour calls for Lord Nolan's standards committee to examine party funding and "let some light into the secret world of Tory funding".
He added: "The scandal of Tory party funding grows with these latest revelations. It's a disgrace that, in a democracy, a political party can hide the sources of its funding from the public", said Mr Prescott.
"The Prime Minister must make a statement about these allegations. Are businessmen buying government favours? What role has the Premier Club played in changing the Tory party's £17 million deficit into a massive election campaign fund?"
Mr Prescott's call was echoed by a Tory MP, Mr Richard Shepherd, who said that details of party funding should be published and that Lord Nolan should look at the issues.
Mr Shepherd told GMTV: "As a form of raising money I don't see anything odd in that, I just think that the particular point we have to make in Britain is that these should be declared amounts."
The shadow foreign secretary, Mr Robin Cook, claimed last night: "The allegations reveal the most blatant case off corruption yet in the history of this sleazy government."
The public was entitled to know who was bankrolling the government, he said. "Businessmen must not be able to buy access to ministers and influence over policy by slipping a bung in secret to the Conservative Party."
Mr Cook said that the Tories should let an outside auditor see the Premier Club's books, adding that he would press Mr Major to remove Mr Beckwith from the tender list for the Ministry of Defence and Department of Social Security contracts.
The leader of the Liberal Democrats, Mr Paddy Ashdown, wrote to Mr Major about the Observer's "deeply disturbing" report, warning that, if it was true, it "must have the effect of bringing your high office into disrepute".
He added: "The whole process, as described, is dubious and democratically offensive."
The Observer claimed that for £10,000, club members were offered dinner with cabinet members. For £100,000, donors could dine twice a year with Mr Major.
Tory sources confirmed that two types of membership existed, but denied the size of donation dictated the seniority of the ministers to whom a donor was introduced.