Railtrack action group wants £2bn

THE spectre of Railtrack has returned to haunt the government. Disgruntled shareholders launched a damages claim against the Department of Transport for up to £2bn.

The 45,000-strong Railtrack Private Shareholders Action Group accuses the DoT and former Transport Secretary Stephen Byers of 'abuse of public office' for putting Railtrack into administration in 2001.

In March 2002, City investors led by Fidelity reached a £500m settlement with the government and Network Rail was formed. But private shareholders say government figures put the cost of taking Railtrack private at £2.5bn.

Lawyers Edwin Coe, for the shareholders, plan to call Byers as a witness when the case comes to court in about 18 months. He is not personally liable. Transport Secretary Alistair Darling may also be called.

The DoT says it will defend the claim 'robustly'.