An MP has backed the slap on the wrist handed out to Deputy prime minister John Prescott over his stay at a US tycoon's ranch as "fair".

MPs had criticised Mr Prescott for not declaring his stay with Philip Anschutz, who is bidding for a licence to build the UK's first and only super-casino at the Millennium Dome.

Parliament's sleaze watch dog yesterday said no action should be taken against the beleaguered Deputy Prime Minister as he owned up to the breach despite it being 11 months late. But the MPs say Mr Prescott failed to follow the ministerial code and decide whether the stay might be thought likely to influence his action as a minister.

Mr Prescott has always strongly denied the allegations.

The report said: "The nature of his relationship with Mr Anschutz meant he was accepting hospitality from a source that might reasonably have been thought likely to influence ministerial action."

That is the key test for declaring hospitality received as a minister in the register of MPs' interests.

Skipton and Ripon MP David Curry, who sits on the commons standards committee, said the deputy Prime Minister's actions were no different to omissions made in the past by both Prime Minister Tony Blair and failed Tory leader William Hague accepting the non-declaration as a "mistake."

Mr Curry said: "The report's decision is fair he realised he should have admitted his meeting but what was decided really amounts to a three points on your licence and a £40 fine.

"However it seems to me he owned up because he was questioned.

"It is not a hanging offence but an error of judgement.

"Tony Blair, William Hague and Ken Clarke have all done similar things.

"The outcome in relation to declaration was fair not too lenient."

But whether Mr Prescott had broken the ministerial code, needed to be looked into further, the Conservative MP added.

The report calls for rules need to be tightened to prevent such abuses in future and an "independent element" to be introduced into the investigation of breaches of the ministerial code.

Mr Curry said: "It was clear Mr Prescott wanted things from Mr Anschutz and vice versa. It was a bit too close to the bone.

"He is after all the Deputy Prime Minister.

"It goes further than just omitting a gift.

"He is a spent commodity. People judge him on whether he is an asset to the Government and anyone who thinks he is living in a surreal world a powerful land of make believe.

"He has nothing left to give."

Mr Prescott has accepted the findings and Downing Street says the problems have now been resolved.

Mr Blair has refused to order a full inquiry.

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