CONSERVATIVE leader Michael Howard has defended controversial donations by a former party chairman to two Tories fighting key marginal seats in Hampshire.

In an exclusive interview with the Daily Echo, Mr Howard said multi-millionaire Michael Ashcroft had broken no laws and was entitled to give money to whoever he wanted.

Lord Ashcroft gave £13,000 to Romsey Tory candidate Caroline Nokes and £7,000 to Eastleigh hopeful Conor Burns, who are both trying to capture seats from the Liberal Democrats.

Speaking to the Daily Echo on a visit to Hampshire yesterday, Mr Howard said it was up to Lord Ashcroft to make donations to whoever he liked.

He said: "Why on earth not? It is perfectly legal. It is all above board. Conservative supporters are entitled to give money to candidates and do."

Mr Howard praised Julian Lewis, the Conservative candidate for New Forest East, for his campaign against the controversial plans by Associated British Ports to build a container port at Dibden Bay.

Government inspectors turned down the company's proposals to build the port - to the delight of New Forest campaigners but to the despair of businesses and civic leaders in Southamp-ton.

Mr Howard said the issue had now been decided. He said: "This is a matter that has been concluded. There was a planning inquiry. It has been dealt with. These things are dealt with through a proper process."

He highlighted Conservative proposals to cut pensioners' council tax bills but admitted there would be no help for people on low incomes in Hampshire who were also faced with council tax increases.

He said: "We can't do everything I would like to do. I only make promises I can keep. It would be nice to offer things to everyone.

"We have put forward a series of tax cuts helping people on low incomes by scrapping stamp duty. Also we will be helping people to save for their pensions by giving them extra tax relief and also helping pensioners by cutting 50 per cent off their council tax bills."

He said that Romsey and Eastleigh were just two of the party's many target seats in the region and added he wanted to win every Conservative vote he could.

He added that the Tories wanted an asylum system that people had confidence in.

He said: "That means controls and limits. I want to give more genuine refugees sanctuary in this country. Only two out of ten asylum seekers are genuine refugees. That has got to stop."