BRITISH Gas chief executive Cedric Brown, the man who sparked the "fat cat" pay row, was at the centre of fresh controversy tonight after details of his early retirement package were revealed. The 60 year old confirmed he will stand down from his £475,000 a year job on April 30th, ahead of British Gas being split into two companies.

But Mr Brown is being retained as a consultant by the privatised utility on £10,000 a month for a year. He will get a company car, an office, and a secretary.

Mr Brown, who denied he was being made the "fall guy" because of the furore over his 75 per cent pay rise in 1994, will also receive an annual pension of around £250,000 a year.

Labour estimated that Mr Brown's retirement will cost the British Gas pension fund £4 million.

The retirement package led to clashes in the Commons at Prime Minister's question time when Labour leader, Mr Tony Blair said: "When customer complaints to British Gas have doubled and the company is being forced to split in two today because of huge losses on gas contracts, do you think that the leaving package of the chief executive - a £4 million pension fund, an annual income of £250,000 a year and £120,000 in consultancy fees - is justified or not?"

The Prime Minister, Mr John Major said the company had been split to increase competition "which I would have thought you would have liked".

On Mr Brown's leaving package, he said: "That, in the private sector, is a matter for the shareholders."

Earlier Mr Brown told a news conference in London, held to announce his retirement and the demerger, that the tasks he had set himself when he was appointed chief executive four years ago had largely been achieved and demerger was now the right way forward.

"One of the consequences is that my job disappears."

British Gas chairman, Mr Richard Giordano praised Mr Brown for devoting more than 40 years to the organisation.