MEMBERS of parliament still reeling from the arrest of Tony Blair's adviser Lord Levy fear the episode could have dented public confidence in the political system.

But most of the area's MPs have insisted British politics is generally honest even if it does need reform.

Lord Levy, Labour's chief fundraiser, was arrested by police investigating allegations of cash being paid for honours. He has not been charged with an offence.

New Forest West's Conservative MP Desmond Swayne said the episode had caused shock in Westminster.

"People are quite breathtaken that someone so close to the prime minister has been arrested," he said.

But he insisted that despite previous scandals such as the "cash for questions" controversy in the 1990s politics was generally clean.

"We can name those because they stick in the mind, because actually they're relatively few," he said.

"I think actually there's no large scale corruption as you do have in certain European countries.

"That simply doesn't exist here."

Tobias Ellwood, Tory MP for Bournemouth East, said: "We need more clarity, more transparency in our funding for political parties.

"Political parties do need to raise funds in order to conduct their activities but those funds should be raised in a way that the donors should not benefit from their financial generosity."

He added: "If you do look at how things are conducted in other countries, like the United States and the huge influence the oil industry has on the Republican party or other lobby groups have because they make more generous donations, they expect something in return."

Annette Brooke, Liberal Democrat member for mid-Dorset and North Poole, said: "I think it's inevitable that this is going to undermine public confidence.

"I think the Labour Party is to be commended in making donations to political funding open and transparent in a way that hadn't occurred before. But there are loopholes that need to be closed.

"I'm in favour of state funding of parties.

"I do realise that's pretty difficult when the public have got this lack of confidence but if we're really serious about controlling the ways in which funding happens at the moment then I think it's the only way forward."