THE Tory activist who helped run the anti-devolution umbrella organisation during the referendum campaign yesterday told the Neill Committee which is examining party funding of ''an intimidatory atmosphere'' which existed after last year's General Election.

Mark Izatt accepted the atmosphere was more perceived than real but said that Labour's huge win had resulted in a lot of people who donated money to the Think Twice Campaign not wanting to be publicly identified.

He also attacked the issuing to every household of a Government information leaflet on the devolution proposals prior to the Referendum vote last September as ''mischievous''. He agreed its contents had been very factual but believed that because it was launched by the Scottish Secretary Donald Dewar who backed devolution, it had been a useful campaign tool for the supporters of the Parliament.

Mr Izatt, former secretary of the Think Twice campaign told the Committee on Standards in Public Life that in a future referendum campaigners on both sides should be allowed a free mailshot but he did not support large scale State help. Leafleting should be left to the campaign groups.

Mr Nigel Smith, former chairman of the Scotland Forward campaign, suggested the creation of some kind of independent commission, which could make available some start up funding for campaigns in a future referendum and oversee the production of independent information for the public. Disclosure of where funding had come from was also every important.

He also favoured using modern communication methods and awarding free television time to the registered campaigns.

Mr Robin Harper, convener of the Scottish Green Party argued in favour of state funding for political parties and told the committee he would accept the German system, under which the amount given depends on the level of voting support for a party and how much it has been able to raise itself.

Meanwhile Labour and SNP leaders, who gave evidence to the committee the previous day, continued their row over the acceptability of foreign donations. Scottish Labour Party General Secretary Alex Rowley said the Scottish public would be concerned at the SNP's support for such donations and their decision to launch a world wide Internet fundraising appeal, which would would give the impression they wanted to ''buy'' the new Scottish Parliament with foreign cash.

He claimed in a letter to SNP chief executive Mike Russell that the Nationalists' decision to continue accepting cash from abroad represented ''a triumph of narrow party advantage over principle'', and must reflect the fairly limited base of party membership in Scotland to which he had referred.