A POWERFUL committee of MPs was today due to launch an investigation into the way rail franchises - including that for the East Coast Main Line - were awarded.

Officials from the Department of Transport, Local Government and the Regions have been called to give evidence to the Commons Transport Select Committee, on the same day as mourners were gathering for the first anniversary of the Hatfield crash.

They will be followed by Sir Alastair Morton, outgoing chairman of the Strategic Rail Authority (SRA), with the Government's handling of the contest between GNER and Virgin for the East Coast Main Line high on the MPs' agenda.

After months of delays, Ministers announced in July they were postponing the award of the franchise until 2005.

Transport Secretary Stephen Byers said he could not make a decision on who should get the 20-year franchise until details of the £2.6 billion upgrade of the line had been finalised.

But the move was widely criticised with North Yorkshire MPs claiming it was "absolutely scandalous" and had left passengers in limbo for a further two years.

They were furious Mr Byers had sought the views of Sir Alastair but had subsequently ignored them.

At the time, Mr Byers confirmed the SRA had made a firm recommendation he should award a 20-year franchise to one of the bidders but refused to say which one.

Vale of York MP Anne McIntosh demanded fresh reassurances the work will take place before 2005.

She said she was unimpressed by Mr Byers' assertion GNER would be "pleased" by what the Government had planned. He did not say what this was.

The MP is planning to sit in on today's select committee hearing, which will be held in public. She said: "I think it could very interesting." The committee is expected to publish its findings next year.

A spokesman for GNER confirmed representatives from the company will be giving evidence later in the hearing.

"The principles behind this investigation are sound," said spokesman David Mallender.

"It is important that the process is scrutinised and we would be hopeful any future recommendations would clarify and simplify the system."

* Train bosses at GNER today confirmed they would be interested in taking charge of the rail network, if given the chance.

The York-based company reacted after Transport Minister Stephen Byers said transport firms could be offered control of the areas they operate in the wake of Railtrack's demise.

If any such plan is introduced, it would give GNER complete control of the railway over the entire East Coast Main Line.

A GNER spokesman confirmed its parent company, Sea Containers, is interested in seeing how the proposal develops.

Updated: 08:34 Wednesday, October 17, 2001