Sacked Byers aide wins big payout

STEPHEN BYERS was propelled into a humiliating climbdown over Martin Sixsmith, the press chief he forced out of a job, along with agreeing a compensation package at the taxpayers' expense.

In an extraordinary turnaround, the Transport Department conceded that Mr Sixsmith had never resigned - as Mr Byers repeatedly claimed - and apologised to him.

Mr Sixsmith, who left in February along with Mr Byers's personal spin doctor, Jo Moore, will remain on full pay until the end of this month. And he will depart with a six-figure payoff said to be close to £200,000.

The move marks a severe new embarrassment for the Transport Secretary, raising fresh question marks over his judgment.

The statement, agreed by both sides, says: 'The Department have reached agreement with Martin Sixsmith. This is welcome to all concerned, bringing to an end a period not only of uncertainty and dispute, but of intense personal pressure on those concerned.

'The Department accepts that Martin Sixsmith did not resign on 15 February, 2002. While acting in good faith, they announced that he had resigned on what turned out to be an incorrect understanding of earlier discussions.'

Today's announcement makes no mention of compensation, and a spokesman for the department refused to be drawn. But the Conservatives demanded to know how much had been paid - and called for the Transport Secretary to explain why he had misled the Commons over the way Mr Sixsmith had been pushed out.

The double departure of Mr Sixsmith and Ms Moore followed a bitter feud which had, on the Government's own admission, left the key department in a state of unmanageable chaos.

The statement from the department accepts that there had been 'a breakdown in working relations' between Mr Sixsmith and Mr Byers. It accepts that it was due to the hostile views Mr Byers had voiced that Mr Sixsmith 'felt he had good reason' to take his own story to the media.

The statement continues: 'Both parties accept that this now makes it impossible for Martin Sixsmith to work effectively in his post at the Department of Transport, Local Government and the Regions. His contract will therefore come to an end by mutual agreement at the end of May 2002.'

Today's statement also makes clear that both sides have promised to say no more about the row, in an effort to lay the matter to rest. Mr Sixsmith said: 'I have given an undertaking not to make any further comment and will, therefore, not be making any comment.'