Tax Haven Billionaire Funds Eastleigh Tories and Upsets Leadership (Eastleigh Liberal Democrats)

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Tax Haven Billionaire Funds Eastleigh Tories and Upsets Leadership

February 25, 2005 6:07 PM

hihne: Eastleigh needs a local MP who can stand up for our area without fear or favour, not someone who is beholden to a Belize-based billionaire

The Eastleigh Conservatives are being funded by the controversial offshore financier Lord Ashcroft, according to figures published this week by the Electoral Commission.

Lord Ashcroft has given £161,840 to the Conservatives according to the latest figures. According to reports in Conservative newspapers, he is attempting to build up a 'private army' of MPs who are indebted to him and his success in by-passing the Tory leadership has irritated them.

The contributions have been funnelled through Lord Ashcroft's company, Bearwood Corporate Services. This is a subsidiary of Bearwood Holdings, which the Belize-based Baron controls through a network of Belize and Virgin Islands trusts.

Lord Ashcroft has so far aimed his cash at around 24 marginal seats, including LibDem-held Eastleigh (receiving £7,010.69 on 30th December 2004) and Romsey in south Hampshire. Regular payments can bring total funding to more than £20,000 per constituency.

Hampshire MEP Chris Huhne, the Liberal Democrats prospective parliamentary candidate for Eastleigh, said: "These are large amounts of money, and they raise the question of whether MPs elected with such personal support will be independent or whether they will feel it necessary to support Lord Ashcroft's substantial business interests.

"Eastleigh needs a local MP who can stand up for our area without fear or favour, not someone who is beholden to a Belize-based billionaire" said Mr Huhne. He said he would be asking his supporters to dig deep to make the coming battle fair. "The last thing we want is new pocket boroughs" Mr Huhne said.

Mr Huhne said that Lord Ashcroft's controversial funding of the Conservatives - he has given the party more than £10 million in total - was one of the spurs to the registration of donors, and the ban on foreign money. However, there is nothing to suggest that the current donation to local Tories is illegal, as it has been given through a British-registered company.