BYERS' PORKY; Minister hangs on to job after admitting lying; He's ordered to No 10 for final warning by Blair.

Byline: IAN SMITH 

HUMILIATED Transport Minister Stephen Byers is hanging on to his job by his fingernails - after he effectively admitted lying about his role in the Sixsmith affair.

Byers was hauled into No 10 yesterday to be put on a final warning by Prime Minister Tony Blair.

And he was forced to apologise to the House of Commons for failing to tell the whole truth during a TV interview about the spin scandal which has engulfed his department.

The under-fire Minister appeared before MPs to give his side of the e-mail row which sparked a damaging public war of words with his former Press chief Martin Sixsmith.

Byers repeatedly denied on ITV's Dimbleby programme that he had blocked moves to give the former BBC reporter a job in another department as part of a resignation package.

But before a packed Commons, Byers changed his story and admitted he had told senior civil servants that Sixsmith "should not be given a job elsewhere in Government".

Byers' admission was the latest twist in the scandal over a leaked e-mail claiming special adviser Jo Moore had suggested burying bad news about rail figures on the day of Princess Margaret's funeral.

Sixsmith was accused of leaking the e-mail in a bid to undermine Moore, who became notorious for calling September 11 as a "very good day" to release bad news.

Moore resigned - but a row blew up over the circumstances of Sixsmith's departure.

Despite his admission, Byers was still clinging to his job last night following a crunch meeting with Blair.

Byers and Sir Richard Mottram, the top civil servant in the Department of Transport Local Government and the Regions, were ordered to Downing Street last night to be put on a final warning.

Blair's official spokesman said the meeting was called so that the Prime Minister could give his "full personal support" to Byers and Sir Richard and "draw a line" under the scandal.

But despite the public backing, Byers remains in deep trouble - with many MPs seeing him as a lame- duck Minister who will be a constant target for opposition attacks.

Byers' statement to the Commons yesterday hung on whether he had lied on Dimbleby when he denied blocking attempts by civil servants to strike a compromise deal with Sixsmith.

Byers said: "I made it clear to Sir Richard Mottram that, in my view, and this view is strengthened by the events of recent days, Mr Sixsmith should not be given a job elsewhere in Government."

He said: "I sought to make clear on the Dimbleby programme that I was not personally involved in the discussions with Mr Sixsmith on an alternative Civil Service job.

"But if my answers on the programme gave the impression that I did not put forward a view - or make clear my views to others inside and outside the department - that is obviously something I regret and I welcome this opportunity in the House to clarify matters."

The statement effectively endorsed Sixsmith's claim that he had not agreed to resign and that attempts to move him to a new department were blocked by Byers.

The consensus at Westminster last night was that Byers has done enough to survive, unless any more damaging details emerge.

He was helped by an inept performance from Shadow Transport Minister Theresa May, who failed to deliver a killer blow in a rowdy Commons.

Blair's spokesman said the Prime Minister was happy with Byers' explanation of events, including the "wrong impression" he had given on Dimbleby.

The spokesman said: "He expressed regret if he left the wrong impression.

"If, in trying not to get involved in a slanging match with Martin Sixsmith, he created the impression he was not in anyway involved, and he did so inadvertently, he regrets that."

The spokesman said that the Prime Minister wanted Byers to get on with sorting out the railways.

He said: "There can be no stronger signal of the PM's commitment to refocus this department on its proper priorities and of giving his full support to those engaged in that exercise than this meeting."

But Byers continued to face calls to resign.

Liberal Democrat leader Charles Kennedy said the Minister's statement was "a disgrace" and urged him to quit immediately.