Byers does it again

Byers is accused of Railtrack U turn

By Nick Assinder BBC News Online political correspondent

So now we know why Tony Blair refused to sack Stephen Byers - even after the transport secretary admitted telling an untruth over the Sixmith affair.

Apparently he needed his beleaguered minister to continue playing the role of the government's chief doer of dirty work.

And, unsurprisingly, now the latest deed has been done, Mr Byers has found himself under attack for the umpteenth time.

Byers has angered MPs

He is, once again, being accused of "misleading" parliament and the voters by repeatedly claiming no taxpayers' money would be used to pay off shareholders.

He is accused of executing a U turn to get back into the City's good books.

And he is being attacked for deliberately leading his own backbenchers up the garden path in order to win their support when his career was on the line over the Sixmith affair.

MPs conned

Mr Byers and Downing Street deny all this and insist he misled no one over the use of taxpayers' cash to payoff Railtrack shareholders.

He certainly seems to have misled some of his own backbenchers who have been left looking conned over their previous support for him.

He escaped the fallout for the Sixmith "lie" because many Old Labour MPs were delighted he had, in effect, renationalised without compensation the failing Railtrack company.

Now they find it isn't quite like that and shareholders are to get £300 million back.

Mr Byers claims he always said shareholders had to get the value of their shares and that, as promised, the taxpayer is not having to foot the bill.

But, no matter which way up you hold his statements, they do not match the fact that the £300 million has come from the taxpayers.

And, suggesting it is not a U turn because the cash has simply been filched from some other projects within the agreed 10 year transport plan is not washing with his furious backbenchers.

Stalking horse

All this could not have come at a worse time for Tony Blair, whose fingerprints are also all over this deal, as are Chancellor Gordon Brown's.

Blair backs Byers

He is already under attack over his enthusiasm for private enterprise and this latest move looks to many like he has capitulated to the City in order to shore up his private finance initiatives.

There are already whispers about disillusioned MPs putting up a stalking horse leadership candidate to challenge him later this year.

Meanwhile, the opinion polls suggest the government is dramatically losing public support. And Iain Duncan Smith has certainly got a new spring in his step.

The idea of a leadership challenge is pretty far fetched and is, primarily, the work of a tiny band of mischief makers.

Tough decisions

However, it is not impossible that, as the hype continues, the party will talk itself into a no-hope contest.

It would fail, but it would fire a warning shot over Tony Blair's bow and give outlet to the dissatisfaction and frustration felt on the Labour benches.

As for Mr Byers, it would appear hugely ungrateful if the prime minister now sacked him in the next reshuffle.

After all he has been "taking the tough decisions" Mr Blair is so keen to see taken.

He may well be moved out of the department of transport, but now might be the time to have a small bet on him being promoted.