Agency staff and poor performing contractors face cuts in the wake of Network Rail's investigation into the New Year engineering over-runs at Rugby and Liverpool Street station.

Announcing the initial results of its investigation the company said on 18 January it was unveiling a package of measures aimed at preventing a repetition.

Speaking at a specially arranged meeting of its Members (Network Rail's equivalent of shareholders), Iain Coucher, Network Rail's chief executive said: "We invested almost £125m in the railway during the Christmas holidays aimed at improving train services. Over 1,000 pieces of work were undertaken and all but three went well. That is three too many in our book.

"We let passengers and freight users down and I'm determined that it won't happen again. That is why we will be taking these far-reaching and decisive measures in the weeks and months ahead."

The key points of the action to be taken following the investigation into the engineering over-runs include:
* Network Rail will increase its in-house capability in key specialist engineering disciplines. Specifically, overhead line (OHL) engineers
* Contractors will have to reduce significantly their reliance on agency staff for the delivery of big engineering projects
* Military-style command posts will be set up for all future major works, delivering clearer lines of authority
* Train and freight operating companies will be invited to have greater involvement at every stage of a project
* Key specialist engineering resources, such as overhead line, will be overseen nationally by Network Rail

Chairman Ian McAllister added: "Over the past five years Network Rail has built up a reputation for delivery and we must now rebuild that by working even harder. We all want to see a bigger, better railway and the actions we will take following our investigation will help future projects run more smoothly." The specially arranged meeting was arranged to enable the executive management team of Network Rail to report back to Members on internal investigations into the network disruptions as soon as possible. It also enabled members to raise questions and challenge the team face-to-face on the overruns. At its board meeting on 16 January the executive directors also reported in depth to the full board of Network Rail where there was lengthy discussion on the issues.