In an FT interview, "nonchalant" transport secretary Stephen Byers has defended his decision to force Railtrack into administration.

"We made the right decision," he said, blaming city bankers for failing to read the writing on the wall.

"We made it crystal clear on April 2 that the government would be prepared to see Railtrack go bust. Some people in the City recognise that was a clear statement of government thinking, others didn't recognise that."