I am disappointed that recent comment appears to question the integrity of those who donate to political parties

Paul Drayson

Mr Treisman said giving money to political parties was "very much like charitable giving".

And he said without such gifts democratic political parties would cease to exist in the UK.

Dr Drayson donated �50,000 to Labour in July 2001.

When it emerged, ministers said there was no connection between Dr Drayson's donation and the subsequent contract.

Now details of a second donation have been revealed by the Electoral Commission.

It was made in December and registered with the commission on 8 February.

Integrity questions

Dr Drayson released a statement saying that there was "no connection" between the cash and the contract.

"Currently, political parties rely financially on membership fees and voluntary donations.

"Therefore, I am disappointed that recent comment appears to question the integrity of those who donate to political parties."

Conservative Cabinet Office spokesman Tim Collins suggested that the issue was undermining the way voters saw Labour.

"No doubt ministers will reassure us yet again that the award of the controversial smallpox vaccine contract mere weeks after this massive further donation was simply a coincidence," he said.

That was especially as PowderJect was acting purely as a middle-man by supplying the drug, and not actually manufacturing it.

Claims rejected

Mr Collins continued: "This Labour government can no longer be surprised if more and more voters simply don't believe a word they say."

That generated a sharp response from Labour, who accused Mr Collins of making "baseless and unfounded allegations".

The Labour spokesman added that the party had played a lead role in being transparent as far as its finances were concerned.

It had also ensured when in power that the new Electoral Commission register had led to wider transparency over donations.

'Hypocrisy'

"We still don't know who, and from where, the Tories 1997 campaign was funded and we only know who funded their 2001 campaign because of the legislation this Labour government introduced," he added.

"The Tories' hypocrisy is breathtaking.

"And the fact that Tim Collins continues to make these baseless and unfounded allegations shows they have nothing to say on the issues that really matter to people: jobs, schools, hospitals and the fight against crime."

Labour was proud of its "broad base of support" and of the "goodwill of people who back democracy without personal gain".

State funding call

But Liberal Democrat health spokesman Evan Harris said the issue exposed Labour's "over-reliance on wealthy donors".

"The fact that these donations coincided with the awarding of procurement contracts to donors gives the appearance of sleaze."

He added that the perception of corruption was "as corrosive to the image of politics as sleaze itself".

"Funding for political parties should be restricted to small individual donations and proportionate state funding," he said.