Britain's ancient parliament chamber faces shakeup

LONDON, Oct 22 (Reuters) Britain's ancient, unelected upper house of parliament, at the centre of a political funding scandal, would be transformed under proposals put forward by a cabinet minister, a newspaper reported today.

Prime Minister Tony Blair has been damaged by the long-simmering scandal over party funding.

Police are investigating allegations that Blair's Labour Party promised seats in the House of Lords in return for secret loans.

Police have also questioned donors to the opposition Conservative Party.

Under reform proposals put forward by cabinet minister Jack Straw, half the members of the House, famous for its pomp and hallowed traditions, would be elected and half appointed, the Sunday Times reported.

At present, some members are nominated by political parties and others are recommended by an appointments committee.

The chamber would be sharply reduced from 741 to about 450 members, and its members would be limited to serving for about 12 years instead of staying for life, as most do now.

They would be paid a salary and expected to work full-time, the newspaper said, quoting a leaked document.

Quotas would be set for ethnic minorities, religious groups and women, radically changing the look of the House, which is currently dominated by elderly white men.

Blair has put Straw, who is leader of the House of Commons -- responsible for organising government business in the lower chamber -- in charge of a committee seeking agreement among political parties on House of Lords reform.

A spokesman for Blair's office said the blueprint quoted by the Sunday Times was not a government document.

''There are cross-party discussions under way. These continue. We wait to see what the outcome of those discussions are,'' he said.

The newspaper said opposition parties were pushing for a larger proportion of the House to be elected.

However, it said agreement was expected soon and the proposals could be voted on next year, with the first elections and appointments to the House of Lords taking place at the next general election, expected in 2009.

During the first of his three terms in office, Blair threw out 90 per cent of hereditary members of the House of Lords. He promised a second round of reform to make the chamber more democratically accountable but it has not yet materialised.

The Lords have limited power. They can delay legislation coming from the lower house, the House of Commons, but they cannot block it indefinitely.

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