Hammond takes up Fox defence role

14 October 2011 Last updated at 23:25 ET

Philip Hammond said it was a “real honour and privilege” to take over from Mr Fox

Philip Hammond has pledged to ensure UK defences are robust, as he begins his first full day as defence secretary.

Liam Fox resigned from the post on Friday after a week of pressure over his working relationship with friend and self-styled adviser Adam Werritty.

In a statement, Mr Hammond said he would “ensure that our defences are robust and that the finances that lie behind them are equally robust”.

Mr Fox’s conduct is being investigated by Cabinet Secretary Sir Gus O’Donnell.

Unanswered questions

The former defence secretary had been under intense pressure this week after it emerged that Mr Werritty had met him 22 times at the MoD and joined him on 18 overseas trips since he came to office last year – despite having no official role.

Labour has called for a broader investigation into the rules governing ministerial conduct.

Shadow defence secretary Jim Murphy also said there were still many unanswered questions, such as who was funding Mr Werritty’s global travels, why were they doing it and why was it allowed to continue for so long.

Mr Werritty, a former flatmate of Mr Fox and the best man at his wedding, handed out business cards suggesting he was his adviser and was present at meetings Mr Fox had with military figures, diplomats and defence contractors.

Questions were raised about who paid for Mr Werritty’s business activities and whether he had personally benefited from his frequent access to the defence secretary.

Shadow defence secretary Jim Murphy said the investigation should be continued.

“What is the flow of money? Liam treated Adam Werrity as a good friend. Adam Werrity seems to have treated Liam Fox like some sort of franchise to make money from,” he said.

“So we need to know as part of the inquiry just where’s the money? Why has Liam resigned? Let’s continue to carry out the investigation and if need be, broaden the investigation further.”

The BBC understands officials at the Department for International Development had raised concerns about Mr Werritty’s involvement in Sri Lanka where, it is claimed, defence contracts were being touted.

A report by Cabinet Secretary Sir Gus O’Donnell into Mr Fox’s conduct is due to be published early next week.

The BBC understands it is likely to be “very critical” of his actions.

In a resignation letter to David Cameron on Friday, Mr Fox said he had “mistakenly allowed” personal and professional responsibilities to be “blurred”.

“The consequences of this have become clearer in recent days,” he added. “I am very sorry for this.”

Mr Cameron responded that he was “very sorry” to see Mr Fox go.

In a swift reshuffle by the prime minister, the defence secretary was replaced by Transport Secretary Mr Hammond. Treasury minister Justine Greening was handed Mr Hammond’s post – becoming the fifth woman in the Cabinet.

‘Sad circumstances’

Mr Hammond said it was a “real honour and privilege” to take over from Mr Fox, who he said had done a “brilliant job”.

“This is a particularly important time for defence. The priorities are the continuing operations overseas and the transformation of the way defence is organised,” he said in a statement issued by the Ministry of Defence.

“I am obviously saddened by the circumstances in which this opportunity arises. I think Liam Fox did a brilliant job in turning round the chaos that Labour left behind and in starting to build a sustainable future for our armed forces.”

He also paid tribute to the “dedication, professionalism and heroism” of British troops.

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