LORD Green, the UK Government Trade Minister at the centre of the row over money laundering at HSBC Bank, was accused of treating Westminster and the public with contempt yesterday.

Labour, which made the allegation, had successfully secured a House of Lords statement on the controversy but Lord Strathclyde, the UK Government's chief spokesman in the upper chamber, stood up and defended his colleague.

The peer insisted the Coalition had every confidence in the former chief executive at HSBC, praised Lord Green's experience, expertise and enthusiasm and stressed how there was no evidence of wrongdoing by the Tory lord.

Lord Strathclyde also emphasised there was there no personal criticism of him.

Last week, US senators said HSBC had been used as a conduit for money moved around by drugs lords and rogue nations. This happened during Lord Green's time at the bank.

Lord Butler, a former head of the UK's civil service and non-executive director of HSBC, noted: "There is no possible way in which the chairman and chief executive can be responsible for everything that happens in a worldwide group the size of HSBC."

However, Chris Leslie, the Shadow Treasury Minister, said: "With his repeated refusals to answer questions about what he knew and when, Lord Green is treating Parliament and the public with contempt."

He added: "When the man who was head of the bank at the time is now deeply involved in banking issues at the heart of government, he cannot keep hiding from answering questions about what he knew and what action he took."