Thank you for your letter dated June 7 and Sir Philip Mawer's report with regard to the complaint made against me by Mr Kevan Jones MP and Mr John Mann MP. I fully accept Sir Phillip's report as to fact and finding and apologise unreservedly for this breach of the rules.

It may be helpful to the Committee if I give some further explanation with regard to a separate matter which Sir Philip refers to (paragraph 14), as I raised it with him by telephone on receiving his original letter. This is the dinner for a second body, the Canterbury Industrial Consultative Council, which took place on Wednesday the 6^th of June. This body, unlike the Patron's Club, is not primarily a fundraising body although it has from time to time made donations to my Association and used to be given administrative support by them.

Sir Philip and I discussed the scale of charges where an event is cancelled at 60 days or less notice and confirms in his memorandum to the Committee (paragraph 28), "I do not think it reasonable given the long history of such events, to require members to cancel events in circumstances which would leave them with a personal financial liability of this nature." On that basis I allowed this second event (which fell within the 60 day period of the Committee's ruling) to go ahead. To prevent any further possible clash with the rules, I have agreed with the officers of this body that they will make no further donations to the Conservative party, in order to be able to be allowed to continue holding some of their functions in the House of Commons. (No donation has ever arisen from an individual event)

I hope this will prove satisfactory and would like to re-iterate my apology to the Committee.