ALAN Milburn is to earn up to £30,000-a-year as an advisor to a private equity firm.

The Darlington MP and former Health Secretary has joined an advisory committee for Bridgepoint, which has a stake in a number of companies working in the health sector.

Mr Milburn, 45, has had the post approved by the Parliamentary advisory committee on business appointments.

He can can expect to earn between £25,000 and £30,000-a-year for two or three meetings a year.

He said: ""I do not see it as in any way a conflict with what I have done as a minister or my job as an MP.

"In fact, I see it as a new challenge which will give me a new perspective and insight on how another part of industry works."

Bridgepoint provides equity for healthcare companies which bid for work within the National Health Service.

Thirteen per cent of the four billion euro fund it manages is invested in the health sector.

Company spokesman James Moore said Mr Milburn was asked to join the committee because of his "very varied background".

He said the MP would advise on strategic matters and would not be involved on an operational level with individual companies.

However last night, Ted Robertson, secretary of the Darlington Memorial Hospital branch of Unison, said: "I personally don't feel it is appropriate for people who have been in ministerial positions and are still MPs to earn money this way."

Conservative prospective parliamentary candidate for Darlington Anthony Frieze said: "It strikes me as a bit odd and I think people would be right to question it."

Mr Milburn's Parliamentary salary would have dropped from £127,791 to £56,358 when he resigned as Health Secretary.

It is not unusual for MPs to earn extra money. Ex-Tory leader and Richmond MP William Hague earned at least £350,000 last year from his writing, lecturing and consultancy activities.