Byers row over Railtrack profits

Transport Secretary Stephen Byers was plunged into fresh controversy today as Railtrack revealed it made £292 million pre-tax profits in the months before he forced its financial collapse.

There will now be a renewed clamour from the Tories for Mr Byers to resign. He forced the company into administration on 7 October saying it was facing a "funding meltdown" and would require billions of pounds more of public money to keep it going.

The results for the sixmonth period ending 30 September show that Railtrack's investment and renewals in the railways increased by 25 per cent to a record £1.4 billion.

The six-monthly profit is a £117 million increase on last year. Steve Marshall, Railtrack's chief executive who has already announced he is leaving in protest at Mr Byer's handling of his company, said the figures "show that the business was very solvent at 5 October (the weekend when Mr Byers forced the company into administration)".

He added the results prove "that Railtrack was trading profitably, in line with expectations and the contingent liabilities outlined at the 2001 year end were being addressed. As we have said consistently, Railtrack Plc was not insolvent until the Secretary of State chose to make it so".