A LABOUR peer who advises the Home Secretary on race issues has attacked the Government for continuing to give the controversial author Salman Rushdie police protection.

Lord Ahmed of Rotherham criticised the fact that despite the author's decision to base himself in the United States, his protection is being paid for by the British taxpayer.

He claims that the annual bill for minding Mr Rushdie - subject of a fatwa or death sentence from the late Ayatollah Khomeini - has risen to #1m a year, and that there is no sign of the protection being ended.

The Indian-born author came

to the world's attention when his book, The Satanic Verses, was branded blasphemous by the Iranian leadership in 1989.

Muslims across the world who believed their beliefs had been ridiculed were urged to kill him and a hefty bounty was put on the author's head. The Government then granted him 24-hour security.

Mr Rushdie has now moved to the United States - but it is understood that the British taxpayer is still paying about #1m a year for the author's protection. Lord Ahmed said: ''Money which is being wasted on Salman Rushdie could be better spent on providing bobbies on the beat, rather than wasting our money on someone who is wealthy enough anyway and who could provide protection to himself.

''It gives the wrong signal that British Muslims are still after Salman Rushdie and it gives him that importance. Muslims in Britain are not even interested, they don't even want to know,''

he told BBC Radio 4.

A spokesman at New Scotland Yard said: ''We are not prepared to comment on matters of security or protection.''

A Home Office spokesman also declined to comment.