LONDON -- Out-of-pocket Railtrack shareholders said on Thursday
they will take Britain to court after the government refused to
release documents on its decision to force the country's rail
network operator into administration, a wire service reports.
"They have given us no option but to pursue the matter is
the courts and this we will do," said Simon Haslam, the chairman of
the Railtrack Shareholders' Action Group (RSAG), which represents 49
percent of the ordinary shares in Railtrack.
UK Transport
Secretary Stephen Byers forced the operating subsidiary Railtrack
Plc, the owner of 23,000 miles of track and 2,500 stations, into
insolvency in October last year, tired of its pleas for cash and
failure to deliver a reliable service.
He has also refused
to bail out shareholders.
Despite winning the plaudits from
his centre-left Labour colleagues, Byers has failed to capitalise on
what should have been a popular decision by his refusal to bailout
shareholders, alienating much of the financial community and
sparking a string of newspaper reports calling for his resignation.
And Britain's creaking railways are in chaos.
Strikes over wage disputes have disrupted thousands of
commuters, a government minister said the country's railways were
the "worst in Europe," a shortage of drivers causes delays and the
infrastructure is ailing from years of underinvestment.
And
Prime Minister Tony Blair has been forced on several occasions to
defend the embattled Byers, the latest on Wednesday when he insisted
the transport secretary remained in charge
Byers has
proposed a not-for-profit company, underpinned by the
government-directed regulator the Strategic Rail Authority, to run
the network. The administrators from Ernst & Young are
considering a range of financing proposals from banks.
Haslam, who is also a senior executive at fund manager
Fidelity International, said the Byers' transport ministry has
consistently said that Byers' actions were legal and proper.
"One would assume that the documents we have requested would
prove this, but the fact that we will have to apply to the court to
see them raises questions, " he said in a statement. "I am forced to
the conclusion that the government has something to hide."