Troubled transport minister, Stephen Byers, will today make a statement to parliament on the collapse of rail infrastructure firm Railtrack and its proposed replacement with a non-profit making company. The minister's statement is likely to set out the parlous financial state of the company and will also claim it was Railtrack bosses who raised the possibility of administration when they met with him in July.

Byers is reported to have agreed to compensate Railtrack for its channel Tunnel rail link concession, though he may offer the company less than the £400 million it has demanded.

Shadow chancellor Michael Howard has called for an immediate inquiry into the collapse of the company. He is to urge the Financial Services Authority to investigate claims that Byers created a false market in the company's shares ahead of his decision to place it in administration by failing to disclose the information.

The FT reports that German bank WestLB is looking for support among other institutions in putting together a consortium to take over Railtrack.