Thursday, December 24, 1998 Published at 19:19 GMT
Tories turn up heat on Mandelson
Peter Mandelson poses for photographers outside the DTI
Peter Mandelson, who resigned from the government along with Geoffrey Robinson over a £373,000 loan, faces fresh questions about his mortgage application.
The former trade secretary - one of the architects of New Labour and a close friend of Prime Minister Tony Blair - used the loan and a £150,000 mortgage from the Britannia Building Society to buy a house in London's fashionable Notting Hill.
Speaking shortly after resigning, Mr Mandelson said he failed to recall what he had said on the form, but had never intended to mislead anyone.
"In order to clarify any ambiguity he will be writing to Britannia setting out clearly his arrangements for financing the purchase to the satisfaction of the building society."
Points to clarify
He told BBC Radio 4's Today programme: "There seems to be still a certain amount of confusion - whether he did or didn't or whether he knew or knew not.
"That basically will be cleared up by Peter, I am sure, in the next day or two."
Health Secretary Frank Dobson said Mr Mandelson's mortgage was a matter for him and not the government.
He told BBC Radio 4's The World At One: "He has done nothing wrong to the best of my knowledge and he has certainly done nothing wrong as secretary of state for trade and industy and as far as I know nobody has accused him of that."
He said: "We clearly need to known the position relating to the mortgage application."
Tory deputy leader Peter Lilley has called for the Cabinet Secretary Sir Richard Wilson to investigate the financial affairs of every minister in the wake of the loan revelations.
The twin resignations brought the biggest upset to the Labour government since it won power in 1997.
Tories exert pressure
The opposition is keeping the pressure up and is keen to highlight alleged feuding between those loyal to Mr Mandelson and Mr Blair and supporters of Chancellor Gordon Brown.
Latest reports are saying sources close to the former minister are urging him to run for Mayor of London, against other candidates such as Transport Minister Glenda Jackson and old Labour arch-rival Ken Livingston.
Mr Mandelson's successor Secretary Stephen Byers took up his new position at the DTI on Thursday. His job is taken by Health Minister Alan Milburn.
Culture Secretary Chris Smith takes over responsibility for the Millennium Dome, while John Denham moves from the social security to health.
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