The commons transport select committee heard on Wednesday night that the six-month deadline for a Railtrack replacement was "a very tight timetable" by one of the accountants winding up the original company.

Alan Bloom, giving evidence alongside Railtrack boss Steve Marshall, told MPs that a lot of work still needed to be done to liquidate the company closed down by the department of transport earlier this month.

MPs also heard how the Ernst and Young accountant, who charges the government £450 per hour for his services, had first discussed Railtrack in late August, although administration of the company was unheard of until October 5. After this date, "we were getting ourselves more familiar and more geared up with the real prospect of administration. But we were only looking at that one option. Others were looking at other options," Bloom said.

Chief executive Marshall told members of the select committee that delay in replacing Railtrack would cause serious problems.

"If the period of uncertainty is not brought to an end very quickly, our ability to retain the staff we need is going to be seriously impaired", he said, highlighting that 90 per cent of staff were also shareholders in the company.

Marshall also revealed a scepticism about the £34 billion government plans for the Railways over the next 10 years. He said: "Levering in such a sum is simply not credible if the government is prepared to deal with investors in this way".