A KEY Government argument for re-privatising the flagship East Coast rail line is demolished today, ahead of a Commons debate.

Ministers have repeatedly defended the bitterly-fought move on the grounds that it is supported by Lord Adonis, Labour’s respected former Transport Secretary.

But, today (June 20) , Lord Adonis tells The Northern Echo that the situation has “fundamentally changed” and that the department for transport (Dft) will be blundering if it presses ahead.

The peer accused the Dft of attempting to “rig the franchising timetable” - delaying contests for other lines, at huge cost to taxpayers – in order to put the East Coast first And he said: “East Coast is doing a great job and it should be allowed to get on with it.

“It has an impressive performance record, it has a loyal customer following and it is making big payments back to the government from its profits - to keep fares down for the travelling public - without needing to pay dividends to private shareholders.

“In the last four years, East Coast has established itself as one of the best train operating companies in the country, both operationally and commercially.

“This has fundamentally changed the situation and it is right and proper that East Coast should be allowed to continue as a public sector comparator to the existing private franchises.”

The comments are embarrassing for rail minister Simon Burns, who, in April, told MPs that re-privatisation was “what Lord Adonis always wanted to do when it was possible”.

Last month, Mr Burns added: “I have great difficulty believing that someone as intellectually astute and consistent as the noble Lord Adonis has changed his mind now.”

Today, the minister – who also admitted East Coast was now “successful” - will again face pleas from North-East MPs not to risk further failure, in a Commons debate.

It was Lord Adonis who, in 2009, handed the line to state-owned Directly Operated Railways (DOR), when crisis-hit National Express pulled out of its contract.

It was the second time in three years that a private firm had posted back the keys - GNER did the same – prompting fears of a third fiasco.

Maria Eagle, Labour’s current transport spokeswoman, said the “weakness of the case for this privatisation” had now been laid bare.

Ministers had also claimed a new owner would boost investment, yet the Dft had acknowledged that capital spending came from Network Rail, the track operator.

Ms Eagle said: “Ministers must now explain why they believe it makes sense to move to a model that will see profits shared with shareholders - instead of invested in services.”

Virgin, FirstGroup and a consortia led by SNCF, France’s state-owned rail company, are expected to compete for the new East Coast franchise, late next year.