Peter Cotton was buoyed by Network Rail's response

Peter Cotton, ScotRail managing director, was due to reveal his concerns at an Edinburgh conference.

But Mr Cotton said Network Rail's assurances to cut bureaucracy were "extremely refreshing and encouraging".

He said it paved the way for an ambitious programme for the network to benefit the economy and passengers.

'Extremely positive'

Mr Cotton said Network Rail was "a different kettle of fish" from its predecessor, Railtrack.

He said: "The programme of rail development in Scotland is extremely positive and ambitious.

"There's been some concern recently about the challenge of delivering it. In the past we may have been concerned about Railtrack's role in that delivery.

"I've been listening to Iain Coucher, the deputy chief executive of Network Rail, and I found it extremely refreshing and encouraging.

"There are many projects to be delivered in Scotland which will deliver huge benefits for the economy and passengers."

The present ScotRail franchise expires in 2004

Mr Cotton added: "Delivering all of these is a very ambitious programme.

"But Network Rail is now talking about its absolute determination to increase efficiency, reduce costs and drive down bureaucracy.

"I believe it will do it."

ScotRail's current franchise to run rail services in Scotland is due to expire in April 2004.

A new franchise lasting seven years will be awarded and several firms have been bidding for the new agreement.

The National Express Group - which owns ScotRail - is competing with Arriva Trains, FirstGroup and Serco Rail.