Byers denies Railtrack allegations

The former transport secretary Stephen Byers today rejected allegations by Railtrack shareholders that he deliberately set out to renationalise the company without paying compensation.

He told the high court he had put the interests of the public and rail travellers first, and "if that meant I had to reverse the privatisation of Railtrack, that was something I was prepared to do".

"But in doing that, I did not abuse my position, I did not act unlawfully and I put the public interest first throughout," he said.

Mr Byers was giving evidence for the government in its defence to a ?160m compensation claim brought against it by more than 48,000 individual shareholders who lost their investments when Railtrack was put into administration at the government's request in October 2001.

The shareholders allege the government, through the "impropriety" of Mr Byers, was guilty of "misfeasance in public office" and of breaching their human rights by killing off the company and so interfering with the value of their shares.

They accuse Mr Byers of maliciously driving the company into insolvency so that it could effectively be renationalised without payment of compensation to shareholders.

Keith Rowley QC, for the shareholders, in setting out their allegations, told Mr Byers: "I suggest to you that, as secretary of state, in or about early July 2001, you had conceived a plan in relation to Railtrack.

"That plan was that you would bring about a state of affairs whereby you would be able to petition to have Railtrack plc put into administration. That plan was implemented by you, by your own actions and by your officials, between July and October.

"In acting in that way, you had the specific intention to injure the shareholders of Railtrack by impairing the value of their financial interests in that company."

Mr Byers told Mr Justice Lindsay: "These are very serious allegations, without foundation in fact, and are simply wrong. Throughout this period, I had regard to the interests of the Railtrack shareholders."

The case continues.