D-Day on threat to withhold rail track charges. Region warns that reduction in standards would be unacceptable

warned that anything less than the current standards will be

unacceptable after rail services are fragmented in nine days' time in

the run-up to privatisation.

Councillor Malcom Waugh, chairman of the region's highways and

transportation committee -- which provides #29.8m a year in rail

subsidies to Strathclyde Passenger Transport Executive -- said: ''I

expect nothing else than maintained standards . . . from operational

efficiency to comfort, cleanliness, and ticket prices.''

His warning came on the same day as the Government committed itself to

privatising ScotRail and the East Coast main line by the end of next

year.

The warning to the shadow franchises set to run the largest UK network

outwith London, came before Mr Waugh held talks with lawyers on track

charges which come into effect on April 1.

Mr Waugh said he believed he was legally prevented from authorising

public expenditure without a clear justification of the charges to be

imposed by Railtrack, which will take over responsibility for all rail

infrastructure.

In effect, he is wanting an itemised bill for access to stations,

track, bridges, and tunnels within the SPTE area before releasing

payments to the train operator, ScotRail.

It is understood that Railtrack has only submitted a global bill of

#175m to ScotRail for services which start and terminate their journeys

within Scotland.

Mr Waugh said that a request for an itemised bill for the Strathclyde

network has so far not been met. He added: ''I fear the council could be

accused of misuse of public funds and face surcharges if it authorised

payments before knowing exactly what it is paying for.''

He will issue a formal statement today on the issue after reporting to

his committee on the talks with legal advisers.

Track charges in Strathclyde for maintaining as well as using the

lines are expected to rise from #23.5m to #80.6m, according to some

railway observers. The Government has already pledged to underwrite the

extra costs in the first year.

Mr Waugh underlined his bid for Railtrack to reveal the basis on which

charges are calculated after he opened a #3m extension to a train

maintenance depot at Corkerhill, Glasgow.

He said: ''I cannot be expected to authorise public spending without

knowing where the money is going.''

However, Railtrack suggested last night that Mr Waugh's request for an

itemised bill was outwith its remit. A spokesman said: ''ScotRail is our

customer, not Strathclyde PTE. As such, a bill -- a figure of #175m --

has been presented to ScotRail, which will provide services for the

SPTE.''

Mr Waugh also announced yesterday that the Corkerhill extension,

financed by the SPTE and the European Regional Development Fund, will

service Strathclyde trains around the clock.

It will also maintain 21 new Class 157 trains destined for several

Glasgow commuter routes under a #36m leasing deal.

Committing itself yesterday to privatising ScotRail and the East Coast

main line by the end of 1995, the Government said the re-organisation of

local government in Scotland will not get in the way.

The declaration of intent from Transport Secretary John MacGregor

sought to dispel growing concerns about delays in the privatisation

timetable.

Mr MacGregor yesterday published his guidelines and objectives for Mr

Roger Salmon, the franchising director who will oversee the

privatisation process.

Seven franchises, including ScotRail and the East Coast main line,

have been targeted for early privatisation.

Mr Salmon will issue invitations to pre-qualify to bid for six of the

seven by the end of this year. The seventh -- the Isle of Wight -- is

being held back. Mr MacGregor said: ''The six franchises will be awarded

by the end of 1995.''

He added: ''There isn't really a delay. This was an ambitious

programme. The invitations to pre-qualify for the first six franchises

will be issued by the end of 1994, so it starts this year.

''Clearly there has to be the establishment of a system and a track

record so when the franchising director goes to the market there's a

basis on which to go.''

Transport Minister Roger Freeman denied that local government reform

would have any impact on the franchising of ScotRail. He said

Strathclyde Passenger Transport Executive would be replaced by a

Passenger Transport Authority which would meet the region's obligations.

The Government has promoted ScotRail as a natural candidate for

franchising and put the network in the front-line of privatisation. It

had even floated the idea of letting ScotRail run for only six months as

a shadow franchise, before it put the network out to tender.

ScotRail will be prepared for a management buy-out by a team led by Mr

Chris Green. Mr John Boyle, a spokesman for Mr Green, said yesterday:

''This timescale would look to be much more realistic than the original,

which didn't recognise the requirements of the financial sector.''

However, Labour remained sceptical about the Government's chances of

carrying out its plans. Mr Brian Wilson, Labour's transport spokesman,

said: ''Mr MacGregor's mad scheme is now hitting the buffers of reality.

They never understood the complexity of the industry they were so

determined to meddle with.''