STEVEN Norris, the Conservative candidate for London Mayor, has taken over the chairmanship of Jarvis in the wake of Paris Moayedi's announcement he was to quit the firm.

Mr Norris, a senior independent director at the troubled support services company, was accused by unions of profiting out of the privatisation of the railways.

As former Tory Transport Minister, he was one of the chief driving forces in taking the rail network out of state ownership.

His decision to accept the interim chairmanship post also raised eyebrows among those who felt it was a reflection on Mr Norris's expectations of winning the mayoral post.

A spokesman for the train drivers' union Aslef said: "As one of the architects of privatisation, Steven Norris seems to have done rather well for himself.

"We just wonder if this is an indication that he and the Tory Party have given up on their mayoral chances."

Jarvis has gone through public relations nightmare in recent months and is at the centre of the ongoing inquiry into the Potters Bar rail crash.

But the business continues to be strong and Mr Moayedi leaves a company that yesterday announced a 24 per cent rise in half-year turnover to £710.4m and a gain of 77 per cent in pre-tax profits to £33.7m.

He said the recent appointment of Kevin Hyde as chief executive meant he was now in a position to step down after nine years at the helm.

Jarvis said Mr Moayedi was entitled to a compensation payment in relation to his 12 months notice period, thought to be in the region of £400,000.

Mr Moayedi, who is 65, joined Jarvis as chief executive in November 1994, stepping up to become chairman in May following the death of chairman Lord McGowan.

He oversaw the company's transformation from a construction company employing 600 people in 1995 to a contractor and private finance initiative specialist with 10,500 staff.