Jowell Called To Account Over Casino Talks

Culture secretary Tessa Jowell's statement to MPs on the relationship between her department and US casino groups was "misleading", the Conservatives said today.

Newly released documents suggest officials from the Department for Culture, Media and Sport (DCMS) attempted to persuade the Treasury to lift European money laundering proposals on behalf of casinos wanting to invest in Britain.

This proposed legislation would require all gamblers to show ID on arrival, but the casinos argued this would effectively be a return to members' only casinos and go against the new bill's attempts to liberalise the law.

The government has denied the allegations, insisting it was "entirely right" that any significant reforms of the UK gambling laws be discussed with the industry first.

The controversy centres on comments made by Ms Jowell to parliament last November, where she dismissed Tory claims that the DCMS had discussed the money laundering laws with casino groups.

Two days later, when pressed on the issue at prime minister's question time, Tony Blair said suggestions that casinos had been offered special concessions were "ridiculous".

But today shadow culture secretary Theresa May said a briefing note from DCMS official Richard Beston to culture minister Lord McIntosh, published in The Observer yesterday, suggested Ms Jowell had not been straight with MPs.

Dated May 2004, it reads: "We [the DCMS] have asked the Treasury to consider revising the third money laundering draft directive to exempt casino members from showing ID when they enter the actual gaming floor ... If these discussions fail, I [McIntosh] will consider with industry how best to resolve this issue."

Ms May has now called for all correspondence with American casino groups to be published, and for assurances that the proposed money laundering laws will not be relaxed.

"The secretary of state and the prime minister told the Commons that it was a matter for the Treasury to decide on money laundering rules," she said.

"Yet it is now clear that not only were DCMS officials in discussions with American casino operators, they were actively lobbying the Treasury on their behalf. The impression given by Tessa Jowell was clearly misleading."

She added: "Having talks with casino operators is one thing, but lobbying on their behalf is something completely different."

A DCMS spokesman insisted discussions with casinos over the changes to the gambling laws inevitably included passing on their views to the Treasury, but that was it.

"Part of this [consultation] was discussing with them the draft directive and passing on their views and our views to the Treasury, who sought our opinion and are the ultimate decision-makers," he said.

"Tessa Jowell never denied that we had talked to the industry. What she denied was that we offered special favours. If you analyse the documents we have released under freedom of information legislation, they confirm that.

"There is no question of us ever putting the effectiveness of money laundering directives behind the interests of casino operators, wherever they are from."