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Mandelson warns about escalating Saville costs

Peter Mandelson has issued a warning about the escalating costs of the Bloody Sunday inquiry. The former Northern Secretary said that the inquiry is in danger of being discredited.

Speaking in the House of Commons this afternoon, Mr Mandelson said that to create a goldmine out of tragic events was wrong.

Dr John Reid replied that the inquiry was a necessary part of investigating the truth in order to close a sorry episode in the North's history.

Mr Mandelson was responding to reports that lawyers working on the Saville Inquiry have already been paid stg£40m.

These reports were disputed by Michael Mansfield QC. Mr Mansfield said that he was unable to go into details because of rules governing his profession. He is acting for relatives of two of those shot dead.

The British Government has rejected calls to put a ceiling on the cost of the inquiry after it was revealed it has already cost more than stg£52m. The figure was provided in response to a parliamentary question at Westminster tabled by the Ulster Unionist MP, Jeffrey Donaldson.