Peter Hain arrives at Cardiff University

Mr Hain was slapped down by Tony Blair after finding himself at the centre of controversy, only days after taking on the dual role of Leader of the Commons and Secretary of State for Wales.

Earlier reports ahead of his speech to left-wing think-tank the Bevan Foundation in Cardiff University said Mr Hain would speak of there being "hard choices" on tax ahead with high earners having to pay more.

But Mr Hain re-wrote his speech before taking the stage on Friday evening, dropping the passage which sparked the controversy.

In today's frenzied media climate, it is virtually impossible even to ask questions about the future of our nation Peter Hain

Mr Hain told his audience that the Government would not raise the top rate of tax and he attacked the coverage of his views in the media.

"We will not be raising the top rate of tax," he said.

"All I had intended to do was ask the hard questions on these issues - what are the best ways to tackle inequalities?

"But it seems that in today's frenzied media climate, it is virtually impossible even to ask questions about the future of our nation in decades to come."

'Fairness in the system'

Mr Hain still stressed Labour's commitment to the redistribution of wealth on a "huge scale" and called for further action to reduce inequalities between rich and poor.

Mr Hain added: "I believe that it is possible to have competitive tax rates, and ensure fairness in the system."

Mr Hain denied the government would raise top-rate tax

Hours ahead of Mr Hain's speech, the Treasury had dismissed his reported views on tax, while the prime minister said: "Tax policy is not going to change.

"We are not going to be raising the top rate of tax."

Mr Blair reacted to Mr Hain's comments in Greece, where he is attending the EU summit.

He said: "People are getting somewhat over-excited about this."

Packed audience

Mr Hain used his Cardiff speech to discuss compulsory voting at general elections and further modernisation of the House of Lords.

His speech was delivered to a packed committee room in Cardiff University's Glamorgan Building.

The audience of around 70 included former Plaid Cymru President Dafydd Wigley, Welsh Education Minister Jane Davidson, MPs and Welsh assembly members.

A relaxed Mr Hain joked with his audience that his new wife had made a speech at their wedding last Saturday about what it was like to be married to a cabinet minister.

"Now we know what it is like being on honeymoon," he said.