Lobbying baroness accused of breaching Lords rules

Jo Valentine was accused of breaching House of Lords rules by putting down a string of amendments to planning laws on behalf of the group.

The Liberal Democrats said police should investigate her conduct as part of a full inquiry into allegations that peers have been pocketing huge sums to change laws to suit private firms. The dispute surfaced last week when Lords Truscott, Moonie, Taylor of Blackburn and Snape were revealed in a Sunday newspaper to be allegedly prepared to amend legislation in return for up to £120,000.

There is no suggestion that Lady Valentine has any illicit or undeclared interests. The criticism of her role relates to her high-profile job at London First, an umbrella group for companies ranging from airlines to City finance houses.

Her actions included tabling a series of amendments to planning laws, including pressing for City Hall to have powers to impose business taxes to pay for major infrastructure projects, such as Crossrail, an important London First objective.

But she told the Evening Standard: "I am an unashamed advocate for the interests of London. I do not lobby on behalf of individual companies, but do aim to bring a business perspective to Lords debates."

Lady Valentine said she always declared her post with London First before speaking, so that all peers knew she acted on behalf of a business lobbying group.

The 50-year-old crossbench peeress was ennobled by Tony Blair in 2005 as part of his drive to bring in younger people with expertise of both business and public policy making. She was already in charge of London First at the time and was not asked to give it up.

She said she had no other paid interests apart from her salary with the non-profit organisation. The group produced an analysis of Lords rules to show that there was nothing wrong with her appointment.

But Lib-Dem spokesman Chris Huhne said Scotland Yard should investigate her and three other peers who had put down amendments for business, Lord O'Neill of Clackmannan, Lord Berkeley and Baroness Coussins. Mr Huhne said: "These extra four peers appear to be in the same category where they respectively tabled amendments serving the interests of organisations paying them." Assistant Commissioner John Yates is already considering formal investigations into Lords Truscott and Taylor of Blackburn.

Justice Secretary Jack Straw confirmed he wanted punishments beefed up so that misbehaving peers could be kicked out. Reports today said Lord Archer, who was jailed for perjury, and Lord Black, the newspaper magnate currently in jail, could both be expelled.