Police discuss possibility of 'Lords for hire' inquiry

Senior police officers have met the Leader of the House of Lords, Baroness Royall, to discuss the chances of launching an investigation.

New Met Commissioner Sir Paul Stephenson said detectives were "reviewing the material" involved to decide whether or not to have a full-blown inquiry.

The review is being carried out by investigators from Scotland Yard's Specialist Crime Directorate, the same unit that was involved in the "cash for honours" investigation. Any inquiry into the Lord's affair would also be overseen by Assistant Commissioner John Yates - the officer who led the honours inquiry.

Lord Truscott, Lord Moonie, Lord Taylor of Blackburn and Lord Snape are accused of entering into negotiations to take cash for amending legislation.

The alleged deals, involving fees of up to £120,000, were discussed with Sunday Times reporters posing as lobbyists for a foreign firm.

All four lords strenuously deny any wrongdoing.

Sir Paul told the Metropolitan Police Authority that the force had received a letter from Liberal Democrat MP Chris Huhne asking police to launch an inquiry. Sir Paul said: "We are considering that request and we will be reviewing the relevant material to assist a decision on whether or not it will be appropriate to launch an investigation which we have not done at this stage."

Police are gathering material from the Sunday Times including tapes of the lords involved speaking to undercover reporters.

Baroness Royall, in a statement to peers, said that a criminal investigation was now a real possibility.

She said: "On Monday, the Metropolitan Police Service received a request to consider investigating whether an offence had been committed by certain members of this House.

"The police have considered this request and they have now decided to review the relevant material to assist them in deciding whether it would be appropriate to carry out an investigation."

She confirmed she had met detectives to discuss the case but stressed that a formal investigation had not, at this stage, been ruled in or out.

Lady Royall added: "My Lords, I should stress that the police are not investigating this matter at this stage. They are reviewing this material in relation to the allegations to decide whether such an investigation would be appropriate."

Until today, MPs thought the chances of a police inquiry were very low unless the Met was asked to step in by a senior independent body, such as the independent public body the Committee on Standards in Public Life.

The force was known to be wary of launching an investigation purely on the basis of a complaint from a rival politician.

Detectives probed the "cash for honours" affair after a letter from SNP MP Angus MacNeil but later felt they lacked heavyweight political backing.