Union leader claims Northern Rail is on the brink of collapse, sparking denial ...

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Northern Rail is on the brink of collapse, a union leader claimed yesterday.

Manuel Cortes, of the Transport Salaried Staffs' Association, said he had heard credible rumours that the operator was facing a financial crisis.

Mr Cortes told his union's conference: 'The travelling public are sick and tired of the misery caused by Northern in the light of the timetabling fiasco last year. If Northern is financially compromised then the Government must do the right thing now and act to bring this franchise back into public hands.'

Northern and the Department for Transport rejected the claims, pointing out that £600million was being spent on rolling stock, including new trains.

The East Coast operator ran out of cash and was renationalised last year.