THE Government was last night urged to press ahead with an order for the UK’s next generation of high-speed trains amid stark warnings of passenger overcrowding.

Campaigners said a report predicting “substantial increases in already unacceptable overcrowding levels”

highlighted the urgent need for ministers to approve the Intercity Express Programme (IEP).

A report from the House of Commons Public Accounts Committee found that all relevant targets for increasing train passenger places by 2014 would be missed.

Sedgefield MP Phil Wilson said the report showed why IEP was so important.

The Government’s preferred bidder, Hitachi, has indicated it would build a plant in Newton Aycliffe, County Durham, to fulfil the contract.

About 800 jobs would be created directly with a further 8,000 in the supply chain.

Mr Wilson said: “It is clear that we need to further invest in our rail infrastructure.

“One of the best ways of doing that is through the IEP.

It not only creates better rail stock, it also benefits the general economy by creating jobs, bringing growth and could add to exports.”

As well as building trains for the UK market, campaigners now believe the plant could assemble others for mainland Europe.

Labour MEP Stephen Hughes has told Transport Secretary Philip Hammond that Hitachi’s IEP bid is a “once-in-ageneration opportunity” for the UK to again become a European leader in train manufacturing.

Mr Hughes said in a letter to the minister that the Japanese manufacturer was committed to investing in rail expansion in Europe.

He said: “(Hitachi) could soon be in a position to bid for train manufacturing contracts in a number of other countries, including Germany, France, Sweden, Switzerland, Portugal, Denmark, Poland and the Czech Republic.

“I understand that to help fulfil a substantial element of these potential overseas orders, Hitachi would be seeking to create a single European rail manufacturing centre.”

He said that for the centre to be built in the North-East, the Government had to push ahead with IEP.

Hitachi confirmed last night that it was pursuing contracts in mainland Europe.

A spokesman said: “We are looking to fill the order books of the facility beyond the IEP contract, providing a longlasting economic benefit to the region where the facility is to be located.”

The Commons committee report said the present round of planning had relied heavily on buying extra carriages and on extending platforms to accommodate longer trains “but this approach cannot go on indefinitely”.

The MPs said: “Clearly, alternatives must be found to meet the capacity challenge in the future.

“The DfT (Department for Transport) should vigorously pursue and promote smart ticketing and other demand management techniques to reduce the inefficiencies of overcrowding in peak hours and underused rolling stock at other times.”

Campaigners say Hitachi’s trains would offer greater capacity and quicker journey times, meaning lines could carry 30 per cent more people without significant investment in the infrastructure.

Anthony Smith, chief executive of rail customer watchdog Passenger Focus, said: “Overcrowding is only going to get worse. We need substantial long-term investment as soon as possible to provide longer and more frequent trains to help reduce crowding.”

A spokesman for the Association of Train Operating Companies said demand for rail travel was expected to double over the next few decades.

Mr Hammond said the Government had taken the tough decision to continue investing in rail capacity to improve services, and added: “(We) have had to ask passengers to accept a higher level of rail fare increases in 2012-15 to support this investment. That decision means we will be able to unveil details of our plans to reduce overcrowding in the coming weeks.”

Rail fares could rise by as much as 30 per cent over the next five years, it has been claimed.

A TSSA rail union spokesman said passengers faced ever-rising fares on an overcrowded service with no relief in sight.