VIRGIN would be a popular choice to run East Coast trains, the Transport Secretary said yesterday – amid a storm of protest about his decision to re-privatise the line.

Patrick McLoughlin appeared to give his blessing to the prospect of Richard Branson’s company controlling all North-South services, on both West and East coasts.

Critics questioned whether a successful Virgin bid would raise competition concerns, after the company was given a surprise West Coast franchise extension, through to 2017.

But, in the Commons, Mr McLoughlin referred to Virgin’s likely East Coast bid, saying: “A lot of people were very happy with the service they received on the West Coast.”

FirstGroup and a consortia led by SNCF, France’s state-owned rail company, are also expected to compete for the East Coast line, which will be in private hands by 2015.

Meanwhile, other franchising delays could see local trains in the North-East and North Yorkshire coming back into public ownership, if Labour wins the next election.

But it was the decision to re-privatise the North-East to London services – after four, apparently successful, years in public ownership – that triggered angry scenes in the Commons.

North-East MPs lined up to condemn the rejection of Directly Operated Railways (DOR), which took over after the fiasco that saw National Express hand back the keys.

DOR had paid £40m of profit into government coffers in three years, Labour protested – cash reinvested in the railways, instead of lost to private shareholders.

Pat Glass, the Durham North West MP, asked: “Why is it not okay for the Government to run British railways - but it is okay for the French, German and Dutch to run them?”

Mr McLoughlin struggled to explain why a third franchising collapse would be avoided on the East Coast, after GNER also broke its contract, in 2006.

He told MPs: “I hope we have learnt our lessons. The rail industry has become a lot better at competing for these franchises.”

That comment raised eyebrows after last year’s West Coast debacle, when a contract awarded to FirstGroup had to be scrapped due to Department for Transport (Dft) blunders.

Yesterday, Mr McLoughlin also delayed the re-letting of the Northern and TransPennine Express franchises until 2016 – after the general election.

Transport authorities across the North have already put together a joint proposal to have a greater say over fares and routes, under tentative devolution plans.

The two franchises – which serve Darlington, Durham City, Bishop Auckland, Chester-le-Street, Middlesbrough, Stockton, Hartlepool, Redcar, Sunderland and Northallerton - would be merged.

Yesterday, Labour said it would support a plan for a not-for-profit operation, similar to DOR, if it won the election – and if Northern transport chiefs requested it.

A source said: “We will let the partnership being formed by the transport authorities decide on the future of these services. The decision would be theirs.”