RAILTRACK moves to take legal action against the Government are moving forward, with the company today confirming it is "ready to go".

Chiefs at the company, which has regional headquarters in York, will launch legal proceedings if Transport Secretary Stephen Byers refuses to hand over documents revealing why he put the rail operator in administration.

Railtrack is looking to appoint barrister Elizabeth Gloster QC to take the case forward if Mr Byers refuses to meet the demands of shareholders.

The company has also speculated that it would want to see the under pressure Transport Secretary testify if the case came to court.

But in York, the news of impending legal action has frustrated rail users who are impatient to see improvements on the rail network.

Sue Clark, of Railtrack, said: "We are looking to bring a case of misfeasence or, in layman's terms, a charge of abuse of power.

"We have asked for the disclosure of documents which showed how Mr Byers arrived at his decision.

"We have appointed a law firm called Lovetts, who are bringing the action on behalf of the shareholders.

"We think we have got a good case. We have begun the first stage of legal action. Unless we hear back then it will result in court action."

Railtrack was placed into administration last autumn after Mr Byers pulled the plug on extra subsidies for the company, which manages maintenance and infrastructure on Britain's rail network.

Only weeks later, the company released details of huge profits questioning Mr Byers' claims that Railtrack was in financial collapse.

Ernie Preston, of the Rail Passengers' Committee, said: "We want the future of Railtrack sorted out sooner rather than later.

"If Railtrack are minded to take it to court then the industry will not be moving forward.

"Company directors have a duty to their shareholders. Our concern is that the future of Railtrack is holding up improvements to the rail industry."

Updated: 08:52 Tuesday, February 19, 2002