VALE of York MP Anne McIntosh is to turn up the heat on the Government's handling of the collapse of Railtrack.

The Tory MP has secured a Commons debate to discuss the fallout of Transport Secretary Stephen Byers' controversial decision to force the company into administration.

She believes it could limit the Government's ability to attract vital private investment to the railways in the future.

Ms McIntosh, a member of the select committee responsible for transport issues, said: "The shock waves felt when Railtrack was forced into administration still reverberate around the railway industry. At a time when the Government is inviting private companies to bid for Public Private Partnerships to run the London Underground, the implications of forcing a solvent public limited company into administration are still

being assessed.

"But the Secretary of State's decision is to have cost the taxpayer at least £2 million to date in administration fees, has dented investors' confidence in the railways and has increased the public sector borrowing requirement well into 2002.

"The future of the railways will depend heavily on the injection of private capital, particularly through the Ten-Year Transport Plan.

"Of the total spending envisaged of £63 billion, £33 billion is due to come from the private sector.

"It will be much more difficult and more expensive to raise this capital in future in view of the increased risk."

The debate - which will be held in Westminster Hall - will put the issue back under the spotlight, as a Transport Minister will be obliged to attend and make a fresh statement on the matter.

Updated: 10:35 Monday, December 10, 2001