UNDER-PRESSURE Arriva Trains Northern boss Ray Price last night said the company was still prepared to continue talks with the Rail Maritine and Transport union (RMT) - despite further strikes by conductors being called.

Managing director Mr Price said demands being made by the union for a pay increase of up to 18 per cent were unreasonable.

Speaking to reporters at a rail conference in York, hosted by the Rail Passenger Committee (RPC), he said: "Arriva have a reasonable offer which represents costs of living and productivity gains and we remain prepared to talk about it. This dispute needs to be solved through continued negotiation and requires the people involved to sit around the table and talk to each other."

Mr Price said Arriva had spent an enormous amount of time and effort in restoring customers' confidence in the rail network and thought it had been turning the corner - until the current dispute over conductors' pay began.

Conductors who are unhappy about the pay rises given to drivers plan a third 48-hour walkout on March 1 and 2.

They have been offered an eight per cent pay rise by Arriva, which has so far been rejected.

Earlier, the third annual On-Line rail conference discussed the Strategic Rail Authority's ten-year plan.

It received a broad welcome from industry chiefs, passenger groups and representatives from other stakeholders such as local councils. There were however, calls for fewer rail franchise to make a more workable system.

The conference also saw the launch of a RPC report, called Hard Lines, which identifies forgotten rail routes in need of further development.

The Middlesbrough-Whitby route is among lines in the region criticised for poor service. The RPC said it wanted more trains for the service.