9:13am Monday 22nd March 2010
By Mark Stead
TRANSPORT chiefs have denied a secret deal was struck with an MP at the centre of a cash-for-contacts storm over the future of a crucial rail link through York.
Former trade and transport secretary Stephen Byers is alleged to have to have lobbied the Government on behalf of York-based train operator National Express East Coast as it looked to ditch its loss-making East Coast Mainline franchise last year.
He was secretly filmed saying he had discussed the issue with transport secretary Lord Adonis and reached an agreement that, while the firm’s withdrawal would be publicly criticised, it would be allowed to walk away on favourable terms.
The move is alleged to have cost taxpayers hundreds of millions of pounds when the line, linking York with London and Edinburgh, returned to state ownership last autumn.
But the Department for Transport said there was “no truth whatsoever in the suggestion that Stephen Byers came to any arrangement with Andrew Adonis on any matter relating to National Express” and the Government had not allowed the firm to avoid any obligations.
National Express also denied paying Mr Byers, saying he was one of several MPs representing constituencies along the route which it had been in contact with.
“We have not paid Stephen Byers MP in relation to the discussions we had with him on the East Coast Mainline or for any other matter,” said a spokesman.
“He has not made any ‘deals’ for National Express.”
But calls have been made for an investigation, with Liberal Democrat transport spokesman Norman Baker saying he would be tabling questions in the House of Commons “to try to make clear all discussions which were taking place during a deal which has simply failed passengers”.
Mr Byers was also filmed in the joint probe by the Sunday Times and Channel 4, saying he would work for up to £5,000 a day and was like “a cab for hire”.
He retracted this a day later, saying he had “never lobbied ministers on behalf of commercial interests” and had exaggerated his influence. He firmly denies any wrongdoing.
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