Byers claims rail services not the worst in Europe

Downing Street moved quickly yesterday to dismiss Peter Hain's claims that Britain had the worst railways in Europe and that Labour had failed to invest quickly enough in the network.

Tony Blair's official spokesman said there was no evidence for Mr Hain's claims and pointedly remarked that he was "minister for Europe, not Secretary of State for Transport". The spokesman also stressed that the Prime Minister made "absolutely no apology" for sticking to strict spending limits in Labour's first two years after coming to power.

Each of Mr Hain's claims, that British railways were bottom of the European league, that the problem was "intractable", and that Labour "should have been more radical earlier", was flatly contradicted by Number 10.

Downing Street's rapid rebuttal of his comments came as Mr Blair told the Cabinet yesterday that he was prepared to fight a "battle for the future of public services".

Chairing a cabinet meeting dominated by the subject, the Prime Minister said the Government should ride out the current "flak" from the media over the railways and point to its achievements and long-term plans for transport, health, education and crime.

Mr Hain, who was in the Czech Republic on an overseas tour, said yesterday the current transport strategy was "absolutely right" and praised Mr Byers. Mr Hain is one of a handful of ministers allowed by Downing Street to speak on a range of subjects, but his implicit criticism of John Prescott, a former transport secretary, and Gordon Brown, the Chancellor, prompted some government sources to say he had "gone too far this time".

Mr Blair's official spokesman said it was "not possible" to compare British railways with those in Europe. "It isn't possible just because of the lack of data to make comparisons between different European countries. But what we are absolutely clear about is that they are not good enough," he said.

"Peter Hain is minister for Europe, not Secretary of State or minister for Transport. He's making a point in a particularly candid way.

"But we make absolutely no apology on coming into government for having two tough years for putting public finances in order, to create the platform for a stable economy and higher investment."

Stephen Byers, the Transport Secretary, said he was relaxed about Mr Hain's remarks but disagreed strongly with them. Speaking on BBC Radio 4's World At One, Mr Byers said: "Peter Hain is Peter and he's done this sort of thing before. I don't think there is the evidence that this is the worst system in Europe."

Mr Blair's spokesman admitted that Labour's "gamble" on keeping Railtrack in place had failed and conceded that there would be more uncertainty until its successor was established. "In the end, the Government took a gamble. We acknowledge that the gamble didn't pay off. Do you come into power and undo a whole system or do you see if you can make it work?" he said.

Downing Street said that Mr Byers was given the "rock-solid support" of his colleagues at the cabinet meeting.

Mr Blair made an impassioned defence of his record on public services, telling ministers that improvements to transport, health, education and crime were his "mission for this parliament".