ARRIVA Trains Northern last night finally paid the price for months of misery on the region's railways.

A £2m fine on the beleaguered train operator - for slashing its timetable due to a shortage of drivers - was originally imposed in October.

But the penalty was held in abeyance until a consultation process had been completed.

The company cut more than 1,000 services last year, and the Strategy Rail Authority (SRA) said it was clear Arriva did not "properly anticipate and plan" for the shortages, and condemned the misery it caused for passengers.

Last night, Gary Backler, the SRA's executive director for regional networks, said the enforcement action would "keep management's mind focused on completing the job".

He said the authority had taken its time to ensure the decision was right for passengers and proportionate to breaches of Arriva's franchise agreement.

Arriva restored 97 per cent of its original timetable in February following a huge driver recruitment programme.

The remainder of services are set to follow at the start of the summer timetable in June.

It is still facing possible further penalties if it does not meet targets on new drivers and has been told these must be newly-trained and not poached from other operators.

Ian Walker, secretary of the North-East branch of passenger group Rail Future, said: "Arriva has had enough warning about this penalty and, although the situation for its passengers has improved, it is not yet back to normal.

"We now want to see a speedy end to the dispute with the company's conductors and retail staff which will help restore confidence."

Arriva said the fine would not be passed on to its passengers in the form of an increase in fares.

Spokeswoman Julie Jobling said: "We note the imposition of the fine, but also welcome the fact that the SRA has recognised the significant steps we have made in addressing the situation we faced.