THE chief executive of Enterprise plc - formerly called Lancashire Enterprises - has been urged to dispose of share options by a Tory MP.

Christopher Chope has called on David Taylor to relinquish 300,000 share options he has in the economic development company to avoid any potential conflicts of interest.

The call comes after Mr Taylor was appointed as an unpaid, part time special adviser to John Prescott who has signalled plans to set up a network of regional development agencies.

It is believed Enterprise plc could benefit from the shake-up planned by Mr Prescott.

In his letter to John Prescott Mr Chope, opposition spokesman on Department of Environment, Transport and the Regions, said that Mr Taylor could make a "disproportionate financial benefit from this government policy".

And he asked Mr Prescott to "require Mr Taylor to follow Lord Simon's commendable decision" to assist the Government in its objective of "maintaining standards in public life which are beyond reproach."

Last week Lord Simon the former BP chairman appointed Minister for Trade in Europe, announced that he was selling his £2 million portfolio of BP shares after political pressure.

A spokesman for the Department of Environment, Transport and the Regions today said that it was satisfied there were no conflicts of interest regarding Mr Taylor's appointment.

A spokesman for Preston-based Enterprise plc today said Mr Taylor was abroad on holiday.

He is reported to have said that his post as adviser to the government was of a strategic nature and he stressed he had no involvement in awarding contracts.

Mr Taylor worked for Mr Prescott in the 1980s as a parliamentary researcher and is a former chief executive of English Partnerships.

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