CRUNCH talks will continue today to find a way out of the cash crisis facing Britain's newest railway heritage line.

Leading funders involved in the Weardale Railway project are trying to find a solution to undisclosed cash flow problems that have led to employees receiving only two weeks of their monthly wage.

Weardale Railway Limited, in County Durham, this week said it could not afford to pay its 34 staff their full wage this month. The extent of the crisis has not been revealed.

Officials have called on development agency One NorthEast and the Heritage Lottery Fund to help it overcome its problems.

One NorthEast has appointed consultants from Pricewaterhouse Coopers to examine the business and draw up a plan. Company director Steve Raine said: "Talks are still ongoing with the major funders."

John Holmes, of One NorthEast, said: "An open meeting was held between the funding partnerships, the railway company and business consultants Pricewaterhouse Coopers, and we are continuing to work hard to reach a solution."

Wear Valley District Council leader Olive Brown said: "I do not know any of the details, but I know there are meetings ongoing. I hope they can get together and find a solution.

"I am sorry that they are having problems. This has all come as a bit of a surprise."

Local MP Hilary Armstrong said: "The railway is a vital part of the regeneration of the dale and I know that the partners are working very hard to get over these serious problems. I am willing to help in any way I can."

Since opening in the summer, the venture has attracted thousands of people.

* Yesterday, children from Emerald nurseries in Frosterley, Stanley and Crook travelled on a train that was chartered for the day by nursery owners Karen Veitch and Andrew Heslington.

Mrs Veitch said: "The children have watched the project grow from the start and have been very excited, so we wanted to give them an extra special treat this Christmas."