Train operator Connex South Eastern, which runs services to parts of East Sussex, was today stripped of its franchise for poor performance and over-dependence on Government subsidy.

The company was due to run services until 2006. Richard Bowker, chairman of the Strategic Rail Authority, said: "We have taken this decision to protect taxpayers' money and passenger delivery."

It is the first time the SRA has terminated an operator's franchise. Mr Bowker insisted passengers would not be affected.

Two years ago Connex lost its South Central franchise to rival bidder GoVia, which now runs trains from Brighton to London and along the Sussex coast.

Following today's announcement their will be a six-month exit period, after which Connex will hand over to a temporary company headed by the SRA and other train operators.

Bob Crow, general secretary of the biggest rail union, the RMT, said: "Here is further proof of the crisis of privatisation.

"Here is an opportunity to begin bringing train operations back into the public sector where they belong. If Connex is unfit to run its franchise, why leave it in the company's hands for another six months?"

Connex said today: "Our first priority is to reassure our staff and passengers during this period of uncertainty.

"The SRA has confirmed that all our staff's jobs will be protected and Connex will do its utmost to ensure our passengers benefit from the best possible train service despite this unexpected decision."

Friday June 27, 2003