- My Account
- Logout
- Register
- Login
Cashing in: The ex-ministers who have gone private
Related Articles
25 February 2008
Former Home Secretary David Blunkett went to work for Entrust
And for a large number of former Labour ministers, the cheques just keep on coming.
Twenty-eight have been accused of cashing in on their erstwhile positions of authority by taking jobs in business.
The politicians, who include one-time senior Cabinet members such as David Blunkett and Patricia Hewitt, are raking in a total of £10million from their contracts.
Thirteen of those who have accepted jobs in the last two years are still serving MPs, and many have potential conflicts of interest because their companies bid for Government contracts.
In opposition, Gordon Brown used to make huge political capital about Tory ministers leaving to join the private sector. He criticised the process as a 'revolving door' from the 'cabinet room to the boardroom'.
Now it is his Labour colleagues in the firing line. But none of the 28 former ministers has broken any rules because they have all been approved by the parliamentary advisory committee on business appointments.
Ministers must consult the body if they wish to accept private-sector jobs within two years of leaving office. The committee has advised an ex-minister not to accept a business post on only one occasion.
This was revealed last week by committee chairman Lord Mayhew, but he did not disclose the dentity of the person in question.
Lord Maclennan, one of the committee members, said ministers who worked in a department such as the Ministry of Defence made decisions on large contracts and it would be a concern if bidders were viewed as possible future employers.
MPs have demanded tougher rules on ministers cashing in on their connections.
Paul Flynn, a Labour member of the Commons public administration committee, said he could not remember ministers "hopping into the private sector like this".
He added: "They should be banned for life from taking jobs in the areas in which they have served as ministers. It is a way of buying access."
Among the ministers to have found fortune in the private sector are:
• Melanie Johnson, Public Health Minister (ABPI, drug trade body).
• Lord Warner, Health Minister (UK HealthGateway, health access company).
• Baroness Amos, Leader of the House of Lords (Travant Capital Partners, finance).
• Hilary Armstrong MP, Labour chief whip (GovNet Communications, publisher).
• Alan Milburn MP, Health Secretary (PepsiCo).
• John Reid MP, Home Secretary (chairman, Celtic Football Club).
And the daddy of them all, Tony Blair, has taken lucrative positions at JP Morgan and Zurich Financial Services since stepping down as Prime Minister last summer. Both jobs are worth more than &£2million a year.
Former Health Secretary Patricia Hewitt is now employed by Alliance Boots
Hewitt & Co
For two years, Patricia Hewitt was in charge of the nation's well-being as Health Secretary.
Following her departure last summer she has accepted a consultancy position at Alliance Boots worth £45,000; and a £55,000 job with an investment company which bought 25 private hospitals from Bupa.
David Blunkett, the former Home Secretary, is paid more than £25,000 as an adviser to Entrust, which wants to provide technology for a British identity card scheme.
Former Defence Minister Ivor Caplin went to work for a weapons company selling to the Defence Ministry, as did Lord Bach, although he has now left the company and returned to government.
Former Transport Minister Stephen Ladyman works for ITIS Holdings, which sells traffic data to the Department of Transport.
Former Housing Minister Nick Raynsford works for Hometrack, the property data company.
Former Work and Pensions Minister Baroness Hollis works for the Higham Group, pensions consultants.
And Ian McCartney, the former Trade Minister, is paid £113,000 to advise the Fluor Corporation, which is bidding for a multi-million-pound nuclear waste contract.
Comments
Top stories in News
Top stories in News
-
British housewife facing FIRING SQUAD over Bali drugs smuggling charge was 'neighbour from hell' -
They attacked "like a pack" raining fists on a defenceless legal secretary. Yesterday they walked free from court. No wonder their victim says she has been denied justice.
-
Mayor demands report from Transport for London into Jubilee Line nightmare that left hundreds of commuters trapped for hours underground
-
Video: Intruder bursts into Leveson Inquiry to brand Tony Blair a war criminal -
Baroness Warsi calls in Lords watchdog to clear name over expenses
The O2
Check out the cool stuff happening under our tent such as the hottest gigs, comedy, sport, films, clubs, bars, restaurants and much more.
Can you imagine a career in teaching?
Be inspired to teach - let real teachers show you how rewarding the job can be.
Playing a game-changing role during the Games
Cisco is providing the solutions for London 2012's complex IT needs.
Win a Silverstone track day with Zantac 75
Feel the burn of a different kind - 20 Silverstone motoring experiences to be won
Reader Offers email A fantastic selection of
offers, giveaways and
promotions.
Chelsea close in on £62m swoop for Eden Hazard and Hulk
TV Baftas - in pictures
Eden Hazard: What makes the Chelsea and Arsenal target tick?
News pictures of the day
Drum'n'bass pioneer Goldie creates ‘rose’ portrait of the Queen
Video: South east London factory fire - 'Air raid siren' wakes Greenwich residents
The London best: Yoga classes
Man v Woman v Food: the big burger challenge