Rail can play a role in driving economic growth, said Louise Ellman MP, chair of the House of Commons transport select committee.

But it must work for the north and well as the south of the country.

Examining the state of the railways for the Sir Robert Reid lecture of the Chartered Institute of Logistics and Transport, Ms Ellman credited the railways with success for increasing passenger numbers, now well over one billion journeys per year.

She urged a change in the appraisal system to ensure that good public transport was at the heart of planning for economic growth.

Demonstrating her support for the construction of High Speed 2 between London and Birmingham, she said it would be a step change that could create jobs and help regenerate the Midlands.

She added: "Given that the new line will not be open until 2026 at the earliest, the existing network will continue to need investment and upgrading."

Care will have to be taken to ensure there is an effective balance between spending per head on public transport across all regions, she said. It is currently far greater in London and the south-east than in the north and south-west.

She compared the average age of rolling stock as an example of regional imbalance. Northern Rail uses rolling stock "where 87% dates from the 1980s or before, compared to Southern where more than 75% dates from the year 2000 or later."

She also reiterated that industry costs are too high which is reflected in fare levels, typically around 30% higher than in other west European countries.

She urged the Government, and the industry, to remember that "people earning £30,000 or less a year, account for 40% of all journeys," with that percentage rising much higher in cities like Manchester, Leeds and Newcastle.

She was worried that the Government has made a "pretty serious statement of intent to withdraw public subsidy for rail".

She expressed surprise this had not created more alarm. It could, she argued, "be a prelude to withdrawing services costing too much."

She argued against moves towards "rail peak pricing" which penalises less wealthy passengers who usually have less choice about the time of day they travel to and from work, so cannot buy cheaper off-peak tickets.

Information from CILT.