FORMER Borders MP David Steel has quit the Liberal Democrat party and announced his retirement from the House of Lords.

Lord Steel's association with former MP Cyril Smith, who sexually abused children before and during his time at Westminster, led to this week's decision.

It brings down the curtain on a political career which began in 1965 when a youthful David Steel won the Roxburgh, Selkirk and Peebles by-election.

It was a seat Steel would hold until boundary changes led to him gaining the Tweeddale, Ettrick and Lauderdale seat in 1983 for the recently formed Liberal-Democrats.

Steel, having led both the Liberals and the Lib-Dems, retired from the House of Commons at the 1997 general election.

He was made a life peer and went on to become the first Speaker in the newly created Scottish Parliament.

Lord Steel has remained active in politics through his seat in the House of Lords.

But his association with Liberal colleague in the 1970s and 80s, Sir Cyril Smith, has come back to haunt him.

Under questioning during the recent Independent Inquiry into Child Sexual Abuse (IICSA), Lord Steel said he confronted Smith about allegations of child sexual abuse in 1979 after reading them in Private Eye magazine.

The article reported that young boys in Rochdale children’s homes had claimed that their local MP had stripped, spanked and bathed their buttocks and on occasion fondled their genitals.

Steel told the inquiry he questioned Smith about the allegations during a meeting in the House of Commons.

He said: “What I said to him was, ‘What’s all this about you in Private Eye?’

“He said, rather to my surprise, ‘It is correct’ that he had been in charge of or had some supervisory role in a children’s hostel, that he’d been investigated by the police, and that they had taken no further action, and that was the end of the story.”

The allegations of sexual assault against Smith were investigated by Lancashire police in 1969 but no action was taken.

But the conversation two years later became the focus of the recent Independent Inquiry into Child Sexual Abuse.

Lord Steel told the inquiry that he had failed to act on allegations against Smith, even though he believed them to be true, because it was "past history".

As the IICSA published its long-awaited report, Lord Steel said: "Knowing all I know now, I condemn Cyril Smith's actions towards children."

But the former Holyrood presiding officer said that with the IICSA "not having secured a parliamentary scalp, I fear that I have been made a proxy for Cyril Smith".

Lord Steel released a lengthy statement this week to announce his retirement from public life.

With reports suggesting there could be a fresh investigation into his behaviour - despite the Scottish Liberal Democrats last year concluding there were "no grounds for action" against him - he announced he had quit the party with immediate effect.

He said: "I have received indications that some in the Liberal Democrat Party wish me suspended and investigated again, despite a previous disciplinary process in Scotland which concluded that no further action was required.

"I am told that others are threatening to resign if a new investigation is started.

"I wish to avoid any such turmoil in my party and to prevent further distress to my family.

"I have therefore thanked my local party secretary for their stalwart support through the whole IICSA process, and have informed the local party that my resignation is with immediate effect."

But he also was also strongly critical of the IICSA's handling of the investigation as he stepped down.

He added: "Nowhere do IICSA explain what powers I was supposed to possess to investigate 14 year old allegations against someone - who at the time of the actions alleged was not even a member of my party - that the police and successive DPPs reviewed with access to all files.

"Contrary to some reports, at no point did Cyril Smith admit to me the truth of the allegations in the Private Eye report.

"He admitted that there had been an investigation by police of acts alleged against him whilst he was a councillor in another political party, as was reported. Smith and I did not discuss further what IICSA counsel himself correctly described as “a very very brief conversation” in 1979.

"IICSA refused my offer of clarification on my oral testimony to them, which has since been widely reported.

"My legal advisers have expressed concern to me that the Inquiry should have delayed my appearance until they had sorted their failed “loop” hearing system for my hearing aids. They are right, and I did not have legal representation when giving evidence to IICSA. I should have asked for a delay myself as the transcript shows, I had difficulty hearing their questions."

Lord Steel will now see out his retirement with wife Judy at their Selkirk home.

He added: "As to membership of the House of Lords, friends and colleagues are aware that I have been contemplating retirement next month to coincide with the 55th anniversary of my election as an MP.

"With considerable personal sorrow, and thanks to all I have worked with in the Party and more widely, I have now decided this is what I should do as soon as possible.

"My wife has suffered poor health this past year. I shall now stop the weekly travel from Scotland to London and enjoy a quiet retirement from public life."