The British Minister for Competitiveness in Europe, Lord Simon, decided to sell his shares in British Petroleum, worth £2 million, yesterday and insisted the move had not been forced on him by his Conservative critics. The Tories claimed the decision was a "massive U-turn".
Following the publication of BP's second quarter results yesterday, Lord Simon said his shares would be sold and the profits accrued during his time as a government minister would be donated to charity, "as soon as the arrangements can be finalised". Defending his decision not to sell the shares when he was appointed to the government, Lord Simon insisted he had acted "in accordance with the letter and spirit of the rules throughout this affair. I have acted with complete propriety."
The Prime Minister, Mr Blair, was aware of Lord Simon's ownership of the BP shares and the government had advised him that the situation would need to be resolved in the future. Lord Simon insisted that his non-BP shares had been turned over to a blind trust, following his appointment as a minister and were now being administered by his bank.
Despite the row, Mr Blair vigorously defended his minister against Tory claims that the shares, and his position in government represented a "conflict of interests".
Lord Simon also confirmed he had consulted the board of BP, who said the Minister did not possess any insider information following the publication of the second quarter results. Lord Simon added: "I deeply regret the innuendos put forward by the Opposition in this affair and hope they do not discourage other business people seeking a position in public life."
However, sensing victory last night, the Shadow Trade and Industry secretary, Mr John Redwood, who has repeatedly challenged Lord Simon over the issue, said the government had performed a U-turn. He claimed: "It is of course a massive U-turn because we were told until yesterday that he intended to keep the shares at least until January."