Consultants 'cost Railtrack £225m'

RAILTRACK, the ailing rail network operator, reportedly spent more than £225m on consultants and temporary staff last year, totalling nearly 10% of its total budget.

The company, which the Government forced into administration last year, is thought to have spent £20m alone on auditors and legal fees. Industry sources believe the total bill for its consultants could top £350m. 'Consultants have often got a stranglehold on knowledge in Railtrack and they can spin a task out indefinitely,' one official told the Financial Times. 'You sense Railtrack is not an intelligent insider'.

Railtrack declined to comment on the figures. The spending represents another slap in the face for its long-suffering shareholders. They're set to receive just £500m when Railtrack sells its assets to its Government-backed successor, the not-for-profit company Network Rail.