Blair's scandal-hit deputy gives up free mansion

LONDON, June 1 (Reuters) British Prime Minister Tony Blair's loyal deputy John Prescott gave up his free country mansion, but kept his job despite embarrassing his boss with sex at the office and croquet on the mansion lawn.

Earlier this month Blair stripped the Deputy Prime Minister of nearly all his official duties after newspapers splashed reports that Prescott had had a long affair with his diary secretary.

But despite giving up his main role overseeing local government, Prescott was allowed to keep his title, his 130,000 pound (244,300 pounds) salary and Dorneywood, the historic so-called ''grace and favour'' country mansion that came with his job.

Newspapers had another field day when he was then photographed playing croquet on the mansion's lawn during working hours. Several of Blair's ruling Labour Party parliamentarians openly called for Prescott's resignation.

Prescott said he had told Blair he had personally decided he no longer wanted to use the house.

''I have accepted that my continued use of Dorneywood is getting in the way of doing my job in government,'' he said in a statement yesterday. ''I am well aware that my use of it is now a subject of public controversy and criticism and a matter of concern amongst some MPs and the Labour Party.'' Blair's office has repeatedly said the prime minister still has confidence in his deputy.

Prescott, a former ship's steward and union activist, has been an asset to Blair for his gruff working-class background and the loyalty he brings from party stalwarts.

He made headlines when he punched a demonstrator who threw an egg at him on the campaign trail in 2001 national elections.

But his steamy office affair -- newspapers published his lover's diary -- followed by the photos of him playing croquet on the mansion lawn provided fresh ammunition for an opposition that has accused the government of sleaze and elitism.

Blair stripped Prescott of responsibility for a vast bureaucracy overseeing local government in a cabinet shake-up a week after the affair became public. But Blair said Prescott would still preside over some cabinet committee meetings.

Reuters VJ VP0450