The future of the West Midlands rail network was surrounded in confusion last night after the region's train operator was granted an 18-month stay of execution.

The Central Trains rail franchise is to continue until Autumn 2007, Ministers announced.

The franchise covers West Midlands commuter trains as well as a number of long distance services that pass through Birmingham.

Last year, Transport Secretary Alistair Darling announced the network would be split up among different operators on March 31 2006.

But progress finding a new operator has been slow - and rail industry sources have accused Government officials of dragging their feet.

Transport Secretary Alistair Darling has now been forced officially to postpone the expiry of the Central Trains franchise.

He has also extended the Silverlink franchise to run trains between Birmingham and London Euston.

But he announced that both these networks would eventually be replaced by a new West Midlands franchise, which will operate Silverlink's services to and from Euston station in London, together with regional and local services in the West Midlands.

The news means commuters will have to wait longer to discover who is going to run local train services.

But the proposal was welcomed by Centro, the regional transport coordinator, which said it could lead to a service focused on the needs of the West Midlands.

Virgin services to London will not be affected. But the Virgin CrossCountry rail franchise, which links Birmingham to major cities such as Bristol and Leeds, will also be due for renewal in 2007.

This will end the present arrangement between Virgin and the Department for Transport, under which the department could end the franchise with one year's notice.

Virgin said it intended to bid for the new CrossCountry franchise - and said its punctuality figures had just hit a seven-year high.

There will also be an option to transfer services to and from Birmingham Snow Hill to Chiltern Railways if this can demonstrate better value for money.

A new East Midlands franchise will also be introduced which will operate to and from St Pancras station in London, together with regional and local services in the East Midlands.

Mr Darling said: "This is not about removing routes - it is a sensible reorganisation of the railways."

He said the DfT-Virgin deal over CrossCountry was " always a temporary arrangement" and the Government now wanted to put the franchise on a proper footing.

Virgin CrossCountry managing director Chris Gibb said: "Today's announcement confirms a re-mapping process that has been discussed widely, and CrossCountry has always expected to be a key part of this process."

Coun Gary Clarke, chairman of the watchdog West Midlands Passenger Transport Authority, said: "This looks like positive news for the rail industry.

"We still need the reassurance that the new train operator will be required to provide the same routes and frequencies as Central Trains at the very least - and we will be looking for better performance and quality too."

Centro Director General Rob Donald said: "This suggests we will have a Birmingham-based train company with a clear focus on the conurbation's journey to work area.

"The idea of having a single operator for the Snow Hill line could also lead to greater efficiencies and better services for passengers," he said.

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