THE Government last night attempted to end National Express’ hopes that it could alter the terms of its East Coast rail contract.

Rail Minister Lord Adonis said there was no question of train companies being allowed to renegotiate their contracts.

National Express reportedly wants to scrap its current eight-year franchise deal – which involves the payment of £1.4bn to the Government – and replace that with a fixed management fee contract.

Lord Adonis said: ‘‘There is no question of contracts being renegotiated, but no company has told us that they are in default of their obligations.

The situation is that National Express is continuing to make its premium payments.”

National Express based its bid for the contract on yearon- year passenger growth and increased revenues. But the recession has hit its finances, and passenger numbers have risen by only 0.3 per in the first quarter of the year, compared to nine per cent last year.

Three years ago, GNER’s contract was terminated by the Government after it said it could not meet its payments.

RMT secretary Bob Crow said the East Coast franchise was again in “deep crisis”.

But he said the Government must not prop up the franchise, and said: “It would be political suicide for the Government to bail out National Express.”

Newcastle Central MP Jim Cousins has now put forward a Commons Early Day Motion voicing “grave concern” about the East Coast franchise.

Mr Cousins said privatisation had failed the East Coast Main Line for a second time after the previous collapse of the GNER franchise, and called on the Government to hold an urgent debate on the future of rail franchises and whether a publicly-owned railway would offer a better deal to taxpayers and passengers.

■ Plans by National Express to introduce an optional seat reservation charge of £2.50 for a single or £5 for a return ticket have again been criticised.

Gateshead Lib Dem councillor Ron Beadle said the move was “outrageous”.