Almost half of directors were sceptical about part-privatisation of the tube

The survey said 43% of directors were sceptical about the government's part-privatisation plans for the London Underground.

Only 32% of directors thought the plan would be likely to improve performance.

And 46% were doubtful that the 10-year transport plan would lead to better railways.

Just 38% thought the plan would lead to rail improvements.

Directors 'sceptical'

The survey found that only in two areas - reducing road accidents and improving information to travellers - did directors suggest there could be potential for success.

It found the Motorists' Forum set up by the government to advise on roads policy was unknown to 81% of the directors surveyed.

Almost half doubted the 10-year transport plan would improve the railways

Fewer than 10% thought the Strategic Rail Authority and the Rail Regulator had performed well in terms of helping to improve transport.

Geraint Day, the institute's business research executive, said: "Directors are saying they remain extremely sceptical of the government's ability to deliver improvements across many key areas of its transport plan."

Judgement 'premature'

The survey, in which 509 directors took part, was carried out in October 2001, before the recent controversy involving Transport Secretary Stephen Byers and his department.

The Department of Transport, Local Government and the Regions said in a statement that the directors were "premature" in their judgement.

FoE wants to see a cut in roadbuilding

"Since the survey, there has been a new Chair appointed at the Strategic Rail Authority (SRA).

"There has been a concordat between the SRA and the Rail Regulator, and a strategic plan for the railways over the next 10 years.

"In addition, local transport plans valued at �1.5bn have been announced."

The government is to publish its own review of the plan in the summer that will look at targets and what has been achieved so far, the statement added.

The survey's publication follows concern expressed last week by City fund managers that the Railtrack crisis was jeopardising private investment for future large transport projects.

FoE said more money for railways could be paid for by cuts in roadbuilding, and a 10-year programme of increases in fuel tax.

"If we want a rail system for the 21st century, we have to find more money to invest," said FoE's transport campaigner, Tony Bosworth.