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David Cameron's Director of Communications Andy Coulson finds himself in the thick of it today following those allegations of alleged phone hacking by News of the World journliasts. He resigned as Editor of the paper in January 2007 after the paper's royal editor, Clive Goodman was jailed for hacking into the mobile phones of Buckingham Palace staff.

Conservative leader David Cameron has insisted Andy Coulson's job as his communications director is safe. Senior Labour and Lib Dems figures have said he should be fired after revelations about phone messages being intercepted by the News of the World.

Mr Cameron sought to make a distinction between what Mr Coulson may have done in the past and what he does now for the Conservative Party.
" As director of communications he does an excellent job for the Conservatives, in a proper, upright way at all times "

Mr Coulson who has yet to comment on whether he knew about phone hacking at the paper, issued a statement on Wednesday saying "this story relates to an alleged payment made after I left the News of the World two and a half years ago. I have no knowledge whatsoever of any settlement with Gordon Taylor".

The Conservatives argue that calls by senior Labour figures such as Charles Clarke and John Prescott for Mr Coulson to be sacked were politically-motivated attempts to destabilise Mr Cameron.

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