Rail sale thrown off track

CHRISTIAN WOLMAR

Transport Correspondent

The Government's rail privatisation programme was in jeopardy last night after opponents won the right to a judicial review of the whole process.

Plans to franchise out the 25 rail lines will be delayed for several months if a court challenge, to be heard early next month, is successful. This would not only be enormously embarrassing for the Government as rail privatisation is one of its flagship policies, but it could also mean that no services would be franchised out before the general election. Next year's sale of Railtrack may also be delayed as a result of the campaigners' victory.

The High Court case victory by Save Our Railways - formed by local authorities, rail campaigners and several rail unions - centred on proposals by the franchise director, Roger Salmon, to allow private operators to run fewer trains than the current timetable.

In court, Nigel Pleming QC, for SOR, said an instruction from the former transport secretary John MacGregor aimed at safeguarding services based on existing timetables and protecting the travelling public "has not been obeyed". The Railways Act 1993, the legislation enabling privatisation, said that in drawing up the minimum level of trains which operators must provide, Mr Salmon had to take into account the existing service level. However, when Mr Salmon published proposals for the first two groups of lines to be privatised, they contained reductions of up to a half. Mr Pleming said: "In these circumstances passenger service requirements have not been lawfully set and it would be a wrong exercise of power to let franchises on that basis."

Mr Justice Brooke agreed that SOR had an arguable case which will now be heard in full on 7 and 8 December.

Clare Short, the shadow transport secretary, said: "The Government should call an immediate halt to rail privatisation before any more taxpayers' money is wasted."

Mr Salmon has always argued that his "passenger service requirements" were not intended to represent the full timetable, but only listed those services that operators would be legally obliged to run. He said last night that he would "strenuously defend" his position. "I am satisfied that the public service requirements which I have set are in accordance with the objectives, instructions and guidance issued to me as Franchise Director by the Transport Secretary. [Yesterday's] hearing merely ascertained that there is a point to be argued and not the merits of the argument."

Campaigners have argued that Mr Salmon's plans give the opportunity for private operators to make massive cuts in services. They are also worried that there is no obligation to provide buffet cars, seat reservations and first-class accommodation.

The plan to privatise is already running almost two years behind the schedule set by Mr MacGregor when it was published after the 1992 election.

However, the first three franchises, covering South West Trains, London, Tilbury and Southend, and the Great Western Railway, were due to be announced by the end of the year with the hope that private operators would take over in the spring. Mr Salmon promised the court that no franchise would be let without notifying Save Our Railways 48 hours in advance and it is now impossible for him to let franchises until the legal position is clear.

While the court judgment has no direct effect on the sale of Railtrack, it will have an impact on City confidence.