Millions of pounds need urgently to go into track rolling stock, signalling, staff and stations

Rail Passengers' Committee criticisms

But the watchdog report branded the company the "Cinderella of the strategic network."

The stark conclusions come from the first detailed investigation of a privatised train company by a consumer watchdog.

And it comes as thousands more people were again facing travel misery in north Wales after unions fail to reach agreement with First North Western bosses, resulting in a second strike.

The committee said under-investment had left the Great Western network "in a desperate condition."

'Cash is needed'

"Millions of pounds need urgently to go into track rolling stock, signalling, staff and stations," a statement accompanying its report read.

It made a mockery of the company's 24 recommendations within its service promise.

• Punctuality and reliability began to slide in October 1997, the report says.

• At its worst, almost half of trains were 10 minutes late.

• Customers complained in torrents of letters, prompting the investigation

• Promises to improve performance have not been met.

• Railtrack, regulators and government must share blame for unreliable service.

• The company cut 20% of staff but took on 40% more trains at one stage.

"This has not been delivered and it cannot be delivered without immediate, massive investment in the region's railway infrastructure," said investigator Christopher Irwin.

"If they do not [invest], important areas of Britain will become economically and socially peripheral to Europe."

Response issued

But the company hit back in a counter-statement, saying �134m has been set aside for improvements.

"We acknowledge that our service has sometimes fallen below the level customers expect and deserve," managing director Mike Carroll said.

"We are now reversing 30 years of under-investment with our �80m fleet of new trains, a 20% increase in staff numbers in the last year and an �18m improvement programme for our high-speed trains.

"First Great Western is the only train operator to apply for the Strategic Rail Authority's performance funding for improvements which will benefit customers."

Annual passenger numbers for the number have now reached 19m.

Mr Carroll added First Great Western was outperforming other Intercity operators on the national average for punctuality.