2 items - see also our Sainbury profile at www.gmwatch.org
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Minister 'broke Cabinet rule' over business
Jamie Doward and Mark Townsend
The Observer, Sunday February 22, 2004
http://politics.guardian.co.uk/labour/story/0,9061,1153538,00.html

One of Tony Blair's closest allies, Lord Sainsbury, was fighting for his political life last night after he was accused of breaching strict government guidelines over his business interests.

Leaked minutes obtained by The Observer reveal that the Science Minister, who has extensive business interests in the biotechnology sector, was at a key Cabinet meeting which drew up a top-level strategy to promote the fledgling industry, a policy shift from which Sainsbury could reap large dividends.

At the meeting Sainsbury was tasked with asking the Prime Minister to use his influence with European leaders to promote the biotech industry. By doing so Sainsbury is accused of contravening Article Six of Cabinet Office guidelines that stipulate: 'Ministers must ensure that no conflict arises, or appears to arise, between their public duties and their private interests.'  

The news last night triggered calls for the Minister to be sacked. Former Labour Ministers and Britain's biggest green groups described his position as 'untenable'. Today the Liberal Democrats will write to Blair demanding Sainsbury is removed from the Government and describing his behaviour as unacceptable.

Sainsbury has given more than £11 million to the Labour Party and remains its biggest single donor. His investments in the biotech industry include Diatech, a company that holds a number of patents for GM products and was placed in a blind trust when he became a government Minister.

Through the trust he also has a sizeable stake in another company, Innotech Investments, which has a stake in a US-based firm that seeks out new drugs to cure major health issues. Paradigm Genetics describes itself as having 'advanced research capabilities in biomarker-enabled drug discovery, with an internal focus on diabetes and obesity'.

Also, through his Gatsby Charitable Foundation, Sainsbury has injected millions of pounds into the study of plant genetics at the John Innes Centre, which conducts research into GM crops.

The cabinet minutes show that, in accordance with government guidelines, Sainsbury was absent from the first part of the committee meeting - which discussed GM issues - but attended the second part, focused on biotechnology.

Critics of Sainsbury say that the leaked minutes, from a science and biotechnology committee meeting held earlier this month, show for the first time the clear conflict of interest between the Minister's business interests and his political position.

At the meeting, Ministers discussed a number of key ways to support the UK's biotechnology sector. These included limiting the EU's ability to raise ethical issues surrounding biotechnology, launching an awareness campaign to change MPs and the public's perception about the industry, and encouraging European leaders to push its potential benefits on their health Ministers.

Sainsbury seemingly played a crucial role during the meeting, with Foreign Secretary Jack Straw tasking the Science Minister to contact the Prime Minister on ways to win support within the EU for the biotech industry.

A spokesman for the Department of Trade and Industry - rejected any accusations of wrongdoing, arguing that Sainsbury's role was to promote the industry and he was entitled to be at the meeting.

'There is no way it would be unfitting or that it would breach any guidelines for him to be present and active in discussions on the biotech industry. It would be very odd if he wasn't,' he said.

However, Norman Baker, the Lib Dem environment spokesman, said Sainsbury's position was indefensible. 'He is clearly arguing for an unannounced government promotion of the biotech industry using public funds which, if successful, would benefit him in his personal capacity.

'He should not have been part of that discussion in the first place and his position is clearly untenable as a result. Lord Sainsbury should be reshuffled from his present position at the very least.'

Last night former Environment Minister Michael Meacher echoed the call, saying: 'This is a serious conflict of interest that must be addressed immediately.'
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Sainsbury in ‘conflict’ row
Andrew Porter and Richard James
Sunday Times, February 22, 2004
http://www.timesonline.co.uk/article/0,,2087-1011026,00.html

LORD SAINSBURY, the science minister and one of Tony Blair’s closest allies, has been called upon to put greater distance between his business and political interests.

Leaked minutes reported last night show that Sainsbury took part in a ministerial meeting which drew up a strategy to promote the biotechnology sector.

The minutes highlight the dilemma posed by Sainsbury’s shareholdings in the genetic modification and biotechnology industries.

Because of Sainsbury’s links with the family supermarket chain, he excludes himself from discussions over genetically modified (GM) food. But he has ministerial responsibility for the biotech industry, despite having interests in companies that invest in the area.

At the meeting earlier this month, Sainsbury, whose family has given £11m to the Labour party, was given the task of asking the prime minister to use his influence to promote the biotechnology industry in Europe.

The minutes show that although Sainsbury did not attend the first part of the meeting, which dealt with GM products, he did attend the section dealing with biotechnology.

Sainsbury’s participation in these discussions has drawn criticism that he was contravening ministerial rules.

The minister’s interests in the biotechnology industry include a stake in Innotech investments, which has stakes in the US-based firm Paradigm Genetics, a drug research company.

His holdings in Innotech were put along with other financial interests into a blind trust when he became minister.

Norman Baker, the Liberal Democrat environment spokesman, said Sainsbury’s position was indefensible.

“He is clearly arguing for an unannounced government promotion of the biotech industry using public funds which, if successful would directly benefit him in his personal capacity.”

A spokesman for Sainsbury said: “This is a farcical suggestion. The minister talks to biotech companies all the time — it is part of his job.”

“There were two meetings — the first concerned GM and he did not attend that. Because of his links with Sainsbury he does not deal with GM or food-related matters.

“He did attend the meeting on biotech and that is part of his remit. If he is being accused of talking on biotech matters then he is guilty.” He added that there were no conflicts with his business interests.  

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