MINISTERS are under pressure to extend GNER's franchise to run the East Coast main line beyond 2005 to allow it to buy new trains.

The York-based train operator is in talks with the Strategic Rail Authority to extend its current deal, which runs out in 2003, by a further two years.

But city MP Hugh Bayley said the SRA, which originally wanted to give GNER a 20-year franchise, should be given the scope to offer a deal running to 2006 or 2007.

He told a Commons debate this may be the only way GNER would be able to purchase "absolutely essential" new rolling stock.

Mr Bayley was speaking in the wake of a select committee appearance by GNER chief executive Christopher Garnett last month in which he warned no new trains would be introduced before 2006.

He said GNER would be unable to get finance for the rolling stock because train suppliers only get paid when a train goes into service - not when it is ordered.

As a result, they will not provide trains for GNER because they do not know if the company will be the one to put the trains into use.

The problem arose when Transport Secretary Stephen Byers pulled the plug on plans to provide GNER or Virgin with a 20-year franchise and instead opted to give GNER a two-year extension while details of the upgrade of the East Coast Main Line are finalised.

In yesterday's debate, Mr Bayley said that offering GNER a three- or four-year extension to its current deal might overcome the problem.

He said: "It would be sensible for the Strategic Rail Authority to extend the franchise by a further one or two years in order to make sure that we can get the rolling stock that is essential."

Transport Minister David Jamieson ducked the question on whether the SRA had scope to offer GNER a three- or four-year extension. He said negotiations were currently taking place on the two-year deal and would secure improvements for passengers.

The Minister said: "The Government remains committed to delivering a better, safer railway with increased punctuality, reliability, reduced journey times and higher standards of customer service.

"We are looking to the SRA to use these negotiations to secure improvements that will make a real difference to passengers' journeys.

"We want better rolling stock, we want refurbished stations, we want new services. New services are all on the table."

Updated: 11:07 Wednesday, November 14, 2001