Steve Norris today said he would fight on to become London Mayor - and hopes to stand against Ken Livingstone in 2008.

The Tory surprised colleagues by saying he wanted a third chance to beat Mr Livingstone in the polls, despite twice coming second.

Mr Norris dismissed critics who blamed his failure in last week's election on his chairmanship of rail firm Jarvis. "It was never raised, except by newspapers," he said. "It is a great example of a chatteringclass issue which made no difference one way or the other."

Although the Conservatives are not due to select their 2008 candidate for another two years, Mr Norris said he hoped to be in the running. "We are some way away at the moment but if my party wants me and it makes sense to do it, I would remain happy to consider taking him on."

He said only Mr Livingstone's popularity had saved Labour and predicted the Mayor would lose support in his second term. "Ken is able to poll far more than his party at present but in four years' time I think we will see a very different picture," he said.

"During his second term people-will be paying the bills for what he did in his first term.

"Ken is running on empty - his budget is shot to hell and unless the Chancellor bails him out, passengers will be paying steep bus- fare increases, for example."

Mr Norris, who made crime the focus of his campaign, said he was pleased the Mayor had pledged to make it a priority.

He added that Nicky Gavron, the original Labour candidate who stood aside for Mr Livingstone, would have been lucky to have achieved fourth place. "It leaves Livingstone in a very powerful position," he said. "He can virtually dictate what he wants to Tony Blair."

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