MP steps down from company

12:35pm Wednesday 12th September 2001

Enfield Southgate MP Stephen Twigg is stepping down from a directorship with a property company which hoped to use private money to develop student accommodation.

Mr Twigg held the post at Victoria Management Services for two years and news of his involvement will come as a shock to left-wing MPs and unions who are fiercely opposed to the use of such Private Finance Initiative (PFI) funding. Mr Twigg a former president of the National Union of Students was only recently promoted from the back benches to become deputy leader of the House of Commons under Robin Cook.

Mr Twigg was unavailable for comment this week but a spokesman for The Labour Party said: "Stephen Twigg was under no obligation to disclose his interests if it is a non-renumerated post. He started the process of resigning his directorship before he took up his position."

Victoria Management, set up two years ago, wanted to take advantage of the student property market and enlisted Mr Twigg to give them expertise in profiting from the student market. Mr Twigg claims he did not get paid for his role in the company but the possibility of future payments had been discussed.

Tory councillor Brian Coleman, GLA Member for Barnet and Camden welcomed Mr Twigg's support for PFI funding. "I am delighted that Stephen Twigg is a supporter of PFI. I think he is probably in the wrong party, he should be a Tory."

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