Patricia Hewitt has strongly defended the substantial remuneration taken by MG Rover directors.

The firm is not expected to break even until 2006, four years later than the group’s target, but two directors at the carmaker pocketed salaries of £530,000 between them last year.

Kevin Howe, chief executive, has the potential to double his salary with bonuses.

The trade and industry secretary, normally a vocal critic of "fat cat" pay, said: "Company directors who take big risks and achieve big success deserve big rewards. There were big risks involved in the starting up of Rover again when it looked as though it was the end of the road for the company."