Byers attacked over network plan

Transport Secretary Stephen Byers is under fresh attack today after confirming plans for the expected successor body to take over Railtrack.

He told the Commons the private company will be "run on purely commercial lines but without shareholders... or the need to pay dividends in return for equity funding".

Profits from the company would be reinvested in the network, he said. Railtrack chief executive Steve Marshall said Mr Byers had failed to answer many outstanding issues.

"There was no reassurance for our employees," said Mr Marshall, who has already announced his resignation in protest over the Government forcing Railtrack into administration.

"Nor did it do anything to assure the public that progress on the railway will not be put back by two years. He did not shed further light on the Government's attitude towards shareholders."

Under Mr Byers's plans for the successor body, £1billion of government funding could be provided in the form of a capped loan for "explicit support in specified circumstances". He was confident that incentive packages could attract the "very best people" to the board of directors.

Vernon Hince, acting general secretary of the Rail, Maritime and Transport union, the industry's largest, said: "We are disappointed that Mr Byers has opted for a private company run on purely commercial lines rather than a total return to public ownership.

"It's time to stop lining the pockets of individual beneficiaries."

WestLB, the state-owned German bank, has said it is prepared to buy Railtrack and pay up to 240p a share.