Train firms' frustration at delay in replacing InterCity 125s

Train companies today reacted with anger after the Government said it was postponing a decision to replace Britain's ageing fleet of high-speed InterCity 125s.

Transport secretary Lord Adonis blamed the credit crunch and lower-than-expected passenger numbers as he put the multi-billion-pound, 30-year investment plan for trains running on the Great Western and East Coast main lines on hold.

Adonis said the "reduction in the capacity of the debt market to support the transaction" had hit the project: "The Government does not believe it would be appropriate to enter into this particular contract in the immediate run-up to a general election."

Last February the Government made Agility Trains, a consortium made up of John Laing, Hitachi and Barclays Private Equity, the preferred bidder for the contract, but it had not yet signed the deal. At the time, Agility said the project would create 2500 engineering and manufacturing jobs.

Today Michael Roberts, chief executive of the Association of Train Operating Companies, said it was "vital that there isn't a significant delay in reaching a decision".

He told the Government to give transport companies the opportunity to directly invest.

"The best way to get value for money would be to give train companies a greater role in buying their own rolling stock. This would get things done quicker and cheaper, and give passengers and taxpayers the best deal," he said.

A spokesman for Agility Trains said it was "disappointed" the contract would not be signed before the election but pledged to continue preliminary work on the programme.

Lord Adonis today said he had commissioned an independent report from Sir Andrew Foster, former controller of the Audit Commission, to look into the "value for money" of the programme, as well as potential other options.