Donor or not, I remain a Labour man: Swraj Paul

Steel magnate Lord Swraj Paul on Monday clarified that he will continue to support Britain's ruling Labour party despite government-backed legislation that would stop him from funding the party.

"I have no doubt that Gordon Brown is the best prime minister and Labour the best party for the UK. Gordon has given an international lead on how to tackle the current financial crisis," the Indian-born Paul said.

The founder and chairman of the Caparo Group of industries made his comments after a British newspaper said Sunday Paul was unhappy about a proposed Bill that would stop Britons who have non-domicile (non-dom) tax status from funding political parties.

Paul, who enjoys non-dom status, has funded the Labour party for more than 20 years.

Paul is among several so-called non-doms who have bankrolled the two major political parties - Labour and Conservatives - and, to a lesser extent, the Liberal Democrats.

"My position is simple. I follow the law, whatever the law is," Paul said in a comment on the article carried by 'The Observer' newspaper - a Labour-supporting paper that described his move as dealing a "crushing blow" to the ruling party's fortunes ahead of general elections due by June 3, 2010.

Paul said the newspaper report was premature, as it was based on a Bill that was only published Monday - and will take its time to become law.