A LONG awaited plan to allow Merseytravel to run its own railway network has been sensationally shelved – in a massive U-turn in transport policy.

Passenger authority Merseytravel has spent £1.5m pressing for the new powers over many years.

In May Sir Roy McNulty’s railway review said Merseyrail was an ideal place to test out “vertical integration”, allowing those areas to take full control of both track and trains.

But now Labour-controlled Merseytravel has voted to break off negotiations about introducing the system on Merseyrail.

In other parts of Britain, vertical integration will involve handing track and stations to private train operators, reviving painful memories of the Railtrack debacle and its appalling safety record.

It has sparked huge opposition from rail unions like the RMT.

The vote sets Merseytravel at odds with its chief executive Neil Scales who has long been a champion of vertical integration believing it would drive down costs and lead to a better service.

He told the authority £1.5m has already been spent investigating taking over the tracks, which is included in the region’s official Local Transport Plan.

Last night Labour chairman Mark Dowd denied the party had caved into pressure from railway unions and said it was not worth taking the risk. I think there is too much uncertainty, we are better under government control.”