AN East Lancashire tycoon was today at the centre of a row over claims that knighthoods were being recommended as rewards for cash gifts to the Tory Party.

Engineering boss Jeffrey Whalley was named in a Sunday newspaper article which claimed a Tory "fixer" had lobbied the party chairman to give donors "gongs".

Mr Whalley has reportedly denied knowledge of any lobbying on his behalf. Ribble Valley MP Nigel Evans today attacked the claims as a typical Labour slur.

But his Labour opponent Marcus Johnstone called for a full explanation.

He demanded to know details of Mr Whalley's cash gifts to Ribble Valley Conservatives from Mr Evans who claimed he makes a point of not knowing who gives what to preserve his impartiality.

It was alleged that political lobbyist Derek Laud used his contacts to solicit honours for his clients who had given cash gifts to the Conservative party including a recommended knighthood for Darwen-born Mr Whalley.

Mr Whalley, 54, was a supporter of the Ribble Valley constituency party and helped to revive a fund-raising group called the Northern Industrial Forum, which is chaired by Mr Evans.

The Observer claimed Mr Laud arranged for letters to be sent to party chairman Dr Brian Mawhinney declaring that Mr Whalley made "significant contributions to party funds."

It claimed that last year Mr Laud, who worked for the Westminster lobbying firm Ludgate Laud, also drafted letters which were signed by senior party figures and sent to 10 Downing Street and Conservative Central Office. Laud was dismissed from his job earlier this year. But Mr Evans was today highly critical of the claims.

He said: "I make a point of not knowing who contributes to my constituency.

"I know Jeff Whalley well and he was a member of my constituency between 1992 and 1994.

"The Labour party always tries to spin out the story that people who contribute to party funds are given preferments.

"There is no link between giving money and receiving preferments."

Mr Johnstone said:"Ribble Valley people need to know exactly what is going on and what has been going on in the past.

"I do hope that, for his own sake, Nigel is able to answer my questions and let me know how much he has accepted and whether donations made to his campaign fund are made with any conditions attached."

Mr Whalley, a self-made engineering tycoon, is believed to have made large donations to the Conservative Party while managing director of Halifax-based components manufacturer FKI.

Born into a working class family in Darwen, he left school at 16 and enrolled as an apprentice at an engineering firm in Blackburn.

He was appointed managing director of Dynamo Electrical Services at 28 and became boss of Whipp and Bourne two years later.

Mr Whalley now lives in a Shropshire castle with his wife and three children has reportedly denied knowledge of the campaign waged on his behalf.

Today a spokesman for his Halifax-based company said he was not available to comment.

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