New SRA boss swings the axe

STRATEGIC Rail Authority chairman Richard Bowker took his first scalp on Monday as he axed his chief executive Mike Grant 'with immediate effect'.

Officials made clear this was just the first step in a deeper shake-up of rail as 35-year-old Porsche-driving Bowker flexed his muscles. He will be chairman and chief executive.

Grant leaves his £169,785-a-year job with over three years of his contract to run - opening the way for a potential payoff of up to £500,000.

Bowker will also assist the Government's 'not for profit' bid to run the successor body to Railtrack, by agreeing the appointment of directors and legal and financial advisers to support chairman Ian McAllister, who also heads Ford of Britain.

The Department of Transport said the Government is not considering offering shareholders bonds or loan stock in the new company as compensation.