Byers urged to end 'rail uncertainty'

Railtrack claims progress on the rail network could be threatened

The government is coming under renewed pressure from Railtrack to end the uncertainty about the future of the rail industry.

Railtrack chief executive Steve Marshall has written to transport secretary Stephen Byers to ask him to clarify the position to eliminate the anxiety which threatened to "put progress on the railway back by one if not two years".

His letter comes on the day Mr Byers is expected to make a statement in the Commons on the not-for-profits body that will be established to take over from Railtrack.

Mr Marshall has also pressed the transport secretary to reveal what additional public funding would be available to Railtrack or its successor "to provide the cash investment that the railway desperately needs and the public requires".

It goes on to urge Mr Byers to consider a cash bid by a third party for the company, which is now in administration.

Workers' future

Questions over the future position of Railtrack workers were also raised.

Mr Marshall asked: "What assurance can you give the staff that have worked so hard to turn this industry around that the current uncertain situation will not put progress on the railway back by one if not two years?

"What assurance can you provide the railway's workforce that every effort will be made, in any forthcoming restructuring, to retain the expertise and experience of the railway men and women that have a unique responsibility for the safe running of the network?"

Stephen Byers: statement expected

Mr Byers is due to face opposition questioning in the Commons on Tuesday afternoon, where he is likely to give more details of the body which will replace Railtrack.

Conservative shadow transport secretary Theresa May will face Mr Byers for the first time at the despatch box and is due to maintain pressure on him to stand down over his handling of the Railtrack affair.

The Conservative party recently tried to force Mr Byers' resignation, claiming the government's 10-year rail plan would be compromised by the Railtrack setback.

Shareholders' interests

Last week Mr Byers made it clear that Railtrack's replacement would be a private company limited by guarantee, without shareholders, and re-investing any profits into the network.

But shareholders have launched an action group to protect their interests, and are threatening to sue.

Mr Marshall's letter criticises the government's lukewarm response to a takeover approach by German bank West LB.

It also asks Mr Byers to confirm reports that shareholders may be entitled to receive government-secured and interest-bearing bonds, in addition to any cash distribution that may come from the sale of group assets.