A NORTH-EAST transport group has defended itself against claims that it refused to bankroll a memorial fund for victims of the Paddington rail crash.

Go-Ahead, of Gateshead, owner of Thames Trains, was criticised yesterday for offering £10,000 towards the estimated £400,000 cost of commemorating the dead.

A total of 31 people died when a Thames Turbo train collided with a First Great Western Express in London last October.

Thames Trains driver Michael Hodder has been blamed for the accident, although an inquiry into the crash heard it could have been prevented through investment in improved safety.

The memorial fund was set up to organise a remembrance service, a memorial stone and condolence book.

Victims' families were reportedly furious with the £10,000 offer, pointing out that bus and rail operator Go-Ahead recorded a pre-tax profit of £41.2m last year.

But spokesman Martin Walter, speaking on behalf of Thames Trains and Go-Ahead, said the sum could be increased in the future when plans for commemorating those killed had been received from the organisers.

He added: "Both Thames Trains and First Great Western have been the first to stand up and say we would provide this money and we are immediately vilified for it.

"This is a very sad situation and none of us wished it had happened.

"Our staff were obviously very affected by it, as were the injured and bereaved."