Railtrack chief executive Steve Marshall today resigned, describing the Government's treatment of his company as "shoddy and unacceptable".

He handed in his six months' notice, leaving the future of the company in further disarray.

A York employee of the company, who asked not to be named for fear of losing his job, said he was "disappointed and saddened" by the news.

"It is sad to see yet another good railwayman having to fall on his sword to save the company face," he told the Evening Press.

"It seems people with experience of the industry are of no use and it is no wonder the company is in so much trouble."

Meanwhile, staff arriving for work at Railtrack in York today told of their shock at the company's collapse.

They now face an uncertain future, after the firm was placed in the hands of administrators yesterday.

Staff attended a meeting at the London North-Eastern Zone headquarters in Station Rise today, where the position was outlined to them.

The Government has told Railtrack to reassure staff that their employment rights will not be affected by these latest developments.

A Railtrack spokesman at York said Station Rise staff would help the administrators in any way possible.

Last month, the Evening Press revealed that hundreds of York jobs were under threat as Railtrack considered moving its regional headquarters away from the city.

A leaked internal memo informed staff that the London North-Eastern Zone, based at Station Rise, was to be merged with the East Anglia zone.

It is now widely believed that Railtrack was considering quitting York as a cost-cutting exercise.

At Station Rise, the Evening Press was asked to leave after a reporter attempted to contact staff.

But those we spoke to said they had no idea the company was about to collapse.

One said: "There was not a single whiff of rumour on Friday. I wonder now whether the recently announced changes to Railtrack, including the merger, will go ahead.

"If it is cancelled, then a large sword will be removed from over the heads of many rail staff at York."

Another said: "If anything, this news probably makes our jobs more secure. I believe the merger plans were only to satisfy shareholders."

Railtrack shares have been suspended, with the administrators having to decide how much money will go to more than a quarter of a million investors.

Questioned on arrival at Leeds Station today, one investor, retired teacher John Richardson, 64, from York, said he bought 300 shares when they first became available. He said: "I am not happy about this at all. The whole company has been badly run. It was set up to make money ahead of safety.

"I am not sure what the Government is going to do. It has still not made it clear what its long-term plans are."

York MP Hugh Bayley has urged Railtrack's administrators to keep responsibility for the zone in York.

He said: "I want the headquarters for the East Coast mainline and local services to remain in York."

Updated: 15:07 Monday, October 08, 2001