David Blunkett branded 'damaged property'

David Blunkett, fighting to save his political career, was branded "damaged property" by opposition Conservatives yesterday as a political watchdog said he had breached ministerial rules.

Mr Blunkett, 59, is under fire over accusations he broke codes of conduct by taking a job, while out of office, with a company that has sought government contracts.

The Conservatives believe they can force the resignation of one of Tony Blair's key allies.

The Work and Pensions Secretary was forced to quit in a sex and abuse of office scandal last year after his affair with an American married woman. Mr Blair quickly brought him back into government after winning May's election.

In the interim period, he briefly held a directorship with biotech firm DNA Bioscience and took shares in the company, putting them in a trust for his sons.

Official letters show Mr Blunkett was told three times to consult an advisory committee before taking up corporate positions following his resignation as Home Secretary.

Sir Alistair Graham, chairman of the Committee on Standards in Public Life, said yesterday the letters left no doubt that Mr Blunkett had broken the ministerial code.

Mr Blunkett has admitted taking the directorship without consulting as required, saying he was confused about the rules.

He has apologised and Mr Blair continues to back him. "Of course you have to judge the implications of a mistake," Mr Blair's spokesman said. "The Prime Minister's view in this case is it doesn't affect David Blunkett's ability to do his job."

Conservative spokesman Malcolm Rifkind told BBC Radio Mr Blunkett had become a liability to the government just as his department was facing serious issues over child support payments, welfare reform and pensions.

"The reality is that David Blunkett is damaged property," he said.

The Liberal Democrats called for an independent inquiry into Mr Blunkett's involvement with DNA Bioscience.

On Monday, Mr Blair said Mr Blunkett had his full support after he instructed his family to sell their shares in the company.

Mr Blunkett denied that owning the shares represented a conflict of interest but said he had decided to sell them to avoid any appearance of wrongdoing.

"How could he possibly have thought there wouldn't be perceived to be a conflict of interest here," said Liberal Democrat Work and Pensions spokesman David Laws.

Cabinet ministers are supposed to consult the advisory committee before taking private sector work at any time within two years of leaving office, although they are not required to take the advice the committee gives them.