Call for action over Jarvis

FRESH demands are being made for the Government to take a greater role in the crisis at stricken rail and schools contractor Jarvis.

MPs are concerned that student housing may not be finished for the new year if Jarvis's accommodation services business is not rescued.

Liberal Democrat Treasury spokesman Lord Oakeshott asked what Jarvis's total exposure to PFI projects is likely to be. Estimates put it at up to £4bn.

'The balance of risk and reward is grossly unfair in PFI projects,' said Oakeshott.

Jarvis shares are now a dismal 36 3/4p, down 3 1/4p.

Its market value has fallen 95% in three years to £53m. Analysts point out that - even without more bad news - this is a fragile base to carry £230m debt, let alone to fund £4bn of public sector work.