MPs speak out against job for Norris

FORMER Tory Transport Minister Steven Norris took over as interim chairman of engineer Jarvis - and walked into a conflict of interest row over his candidacy for Mayor of London.

Norris will be paid £100,000 a year for two days a week at Jarvis. He takes over from Paris Moayedi, who steps down after nine years with a payoff of about £400,000 and shares worth £8.2m.

Until a permanent chairman is found, Norris is charged with rebuilding Jarvis's reputation, damaged by rail disasters including the fatal Potters Bar crash.

Last month, Jarvis pulled out of big maintenance contracts with Network Rail, ran into a fresh storm over delays in opening five schools and lost out on a big health contract.

Norris was already senior non-executive director. His promotion drew fire from politicians and unions who claimed a conflict of interest if he pursues his candidacy in June's mayoral elections.

Liberal Democrat MP and mayoral rival Simon Hughes claimed: 'This is a direct clash of interest, not just in theory but in practice. He must now decide which job he most wants to do.'

The Mayor presides over contracts for rejuvenating London's Tube network, worth £200m in turnover for Jarvis through the Tube Lines consortium.

Norris promised that if he is successful at the polls, he will resign all directorships. 'A Mayor can't be Jarvis chairman,' he conceded. 'But I'm not the Mayor. I'm a candidate and the interim chairman.'

Half-year pre-tax profits at Jarvis rose 77% to £33.7m, with dividends held at 4.5p. The shares fell 11 1/4p to 222 3/4p.