CAMPAIGNERS aiming to keep the East Coast line in state hands lack the ambition to improve it, a defiant rail minister said.

Simon Burns faced down Labour calls to abandon the planned re-privatisation of the route – and claims of a pre-election “firesale”, repeating the blunders of the 1990s.

Instead, the minister insisted that only handing it back to a private firm would deliver the extra cash to improve services for passengers.

And he told MPs: “The Government is investing significantly in the East Coast main line, but the Government is not awash with unlimited amounts of money.

“We are more ambitious for the East Coast main line. And we believe - from the experience of other franchisees - that they are prepared to invest their money as well.

“That will ensure there is more investment in improving the services for passengers – that’s the key issue.”

But the claim is strongly disputed by critics who have pointed out that not-for-profit Network Rail – not the private train operators – provides capital investment.

In answer to recent parliamentary questions, the department for transport (Dft) has acknowledged that key rail infrastructure projects are publicly-funded.

During the debate, Labour MPs from the region lined up to urge Mr Burns not to risk the future of a line that he himself described as “successful” in public ownership.

Andy McDonald (Middlesbrough) said: “Private rail companies do not provide innovation – they extract money, as the East Coast rail line shows.”

Roberta Blackman-Woods (City of Durham) said: “It is clearly a well-run line, popular with passengers. Why then is the Government insisting on selling off this line?”

And Hugh Bayley (York Central) said the independent National Audit Office should assess whether private-sector bids for the East Coast offered a better service.

He said the timetable for re-franchising – starting in late 2014, to be concluded in February 2015 – was shorter than for the botched West Coast debacle.

And, warning of the echoes of the 1996 rail privatisation, Mr Bayley added: “When will his party ever learn. This looks like a firesale, rushed through before the 2015 election.”

Meanwhile, Mr Burns sidestepped The Northern Echo’s revelation yesterday that former Labour Transport Secretary Lord Adonis now rejected re-privatisation.

In previous debates, the minister had frequently cited the peer’s opinion as strong evidence that the line could not continue in state hands.

The flagship route was handed to state-owned Directly Operated Railways (DOR) in 2009, 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.

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