When the Weatherfield Recorder blew the whistle on council plans to turn the Community Centre in Coronation Street into a hostel for homeless youths, the general assumption was that councillor Deirdre Barlow had leaked the story to Ken, the freesheet's editor.
After angering Deirdre by making a crack about Ken having everyone bugged, Peter received a visit from Deirdre, who wanted to set the record straight. Treating Deirdre with a smug disdain, Peter informed her that he'd had to take calls from newspapers complaining about the Recorder getting privileged information over them. Deirdre denied being the mole, but she was in a weak position as by her own admission she'd told Ken about the council snubbing Prince Charles from the opening of an abattoir. Deirdre also took issue with Peter's sarcastic remarks, and intimated that his strong reaction against her was partly due to her being a woman, though he shirked off her comments and, his certainty of her guilt unwavering, threatened to have her suspended from future committee meetings.
A few days later, the Recorder published another exposé, this time based on information which Deirdre didn't know, exonerating her. Peter admitted being in the wrong, but offered Deirdre no apology, instead asking for her help in finding the mole. Deirdre refused to spy on Ken - a notion Peter scoffed at, accusing Deirdre of being melodramatic. Councillor Steve Rafferty soon emerged as the main suspect due to him giving stories to the Gazette a few years previously. Seeing Steve buckle under the pressure, Deirdre gave Peter Ken's assurance that Steve wasn't the mole.
In August, Ken got another scoop from his mole regarding Maurice Jones's plans to redevelop Coronation Street and called Peter to firm up a few facts, although Peter refused to comment. Facing becoming a pariah at the Town Hall again, Deirdre informed Peter that the real mole was secretary Wendy Crozier, resulting in Wendy being sacked for gross misconduct and bringing the scandal to an end.