LONDON -- A government minister condemned Britain's railways on Thursday as "the worst in Europe," as fresh rail disruption loomed and postal workers prepared to ballot on a strike, a wire service reports.

With industrial relations across the country sinking to a new low, Europe Minister Peter Hain told The Spectator magazine that the Labour government had got transport policy badly wrong.

"We have the worst railways in Europe. We started transport investment far too late," the Daily Telegraph newspaper quoted him on Thursday as telling the weekly magazine.

"It is an intractable problem. We should have been more radical earlier," he said in an interview due to be published on Friday.

The government is set to unveil its 10-year strategic railway plan next week, with much of the spending on improvements expected to be directed towards London and the south-east, the Financial Times reported.

But in the immediate term railway users face more disruption, with newspapers reporting that rail workers in the south east may also strike over pay, adding to fresh stoppages already planned on South West Train services in London and services on Arriva in the north.

In Scotland, an overtime ban by ScotRail drivers has hit a quarter of services.

The Rail, Maritime and Transport (RMT) union is planning its third 48-hour strike over pay on South West Train services into London's Waterloo on January 24 and 25, adding to transport chaos already caused by stoppages this week.

Strike action will also hit Arriva services in northern England on the same dates as well as on February 5 and 6.

Adding to the worsening industrial relations climate, a potential postal strike is also looming.

The Communication Workers Union said nearly 150,000 postal workers will also vote on industrial action over pay, with the result expected early next month.

On Wednesday Prime Minister Tony Blair criticised the rail strikes, though his officials say the government will not intervene in the dispute.

"This is a totally unacceptable way to resolve disputes in this day and age," Blair told parliament. Arbitration was the way forward, he said.

In parliament, Blair defended his embattled Transport Secretary Stephen Byers, insisting he remained in charge.

Byers brought the railway crisis to a head last year when he tipped privatised network operator Railtrack RTK.L into administration amid an ever-worsening safety and service record and soaring costs.

Further doubt has been cast on Byers' ability to survive by Blair asking strategy adviser and former BBC chief Lord Birt for new ideas on modernising the railways.