Lakshmi Mittal offers donations to Labour Party

London, Jan 14 (UNI) Steel magnate and richest Indian in Britain Lakshmi Mittal has reportedly offered Labour Party a two million dollars bail-out to pull it out of its financial crisis, the Sunday Times reported Prime Minister Tony Blair's party is facing a financial crisis because donations have dried up following the cash-for-honours scandal.

It was claimed by the newspaper the deal had been negotiated by Mr Blair and Lord Levy, who is on bail having been arrested as part of the police investigation into the cash-for-peerages affair.

Labour sources said not much should be seen in the report, because Mr Mittal has been a long time supporter of the party. It has nothing to do with Mr Blair being the prime minister who is to go by this summer.

But Mr Blair would be subject to fierce criticism from Labour backbenchers for using the tainted Lord Levy. They would attack prime minister for using him and some fear that Mr Mittal could be caught in it.

This had happened earlier too when the steel baron had given 125,000 dollars to the Labour Party. Mr Blair had then written a letter to the then PM of Romania to help him secure a deal for a steel plant there. Mr Mittal had come into the attention of the press and they invariably mentioned Mr Blair's help and alleged that he had hardly any investment in Britain and was not a British citizen.

Now the situation is slightly complex becuase Lord Levy is under suspicion over the cash-for-peerages scandal. The Sunday paper has reported that Mr Blair hoped the 2 million dollars gift would remain confidential until May, when the Electoral Commission discloses all donations received by political parties in the first quarter of 2007.

The party, according to sources, is now worried that Mr Mittal might withdraw his offer following the report in the media.

UNI