A CAMPAIGN to gain investment for a major upgrading of Greater Manchester's rail system has been dealt a blow by the boss of the Strategic Rail Authority.

Euro MP Chris Davies has been told by SRA chief executive Richard Bowker that the proposals of Greater Manchester Passenger Transport Authority to increase rail capacity do not make financial sense.

Greater Manchester has one of the largest -- but least well used -- rail networks in England. The PTA wants to achieve a four-fold increase in its use over the next 10 years.

Its plans include construction of a rail flyover east of Piccadilly station to allow Trans-Pennine services to avoid other trains, extra capacity on the densely used lines between Piccadilly and Deansgate where there is only one track in each direction, and increased platform capacity at Victoria and Salford Junction stations.

Hopes were raised two years ago when the Strategic Rail Authority agreed that capacity restraints were preventing the growth in rail use across Greater Manchester, only to be dashed last year when the SRA announced that it would focus investment on inter-city and the south-east commuter services.

Speaking in the European Parliament in Brussels, SRA boss Richard Bowker said the PTA's case "doesn't make sense even if you triple passenger numbers".

First North Western services were being subsidised to the tune of 18p per kilometre travelled, compared to a subsidy of just 1p paid per London commuter.

But Mr Davies said the PTA should fight on, and that the SRA rail boss's argument would exclude huge numbers of people in Britain.

The Liberal Democrat MEP said: "It's a disappointing response but one that simply must not be accepted. If we were to go on like this the only improvement projects that would ever get off the ground would be those connected with London. The SRA is making the best argument for having regional government I have ever heard.

"We can and should transform levels of use of the rail system in Greater Manchester. You only have to look to Glasgow to see what a much more important role railways could be playing in public transport provision locally."