FIRSTGROUP chief executive Tim O'Toole has been replaced by Martin Griffiths of Stagecoach as chairman of the Rail Delivery Group.

The change has come only days after the Department for Transport announced that Network Rail will be moved into the public sector in September. The reform will nationalise Network Rail and its assets, although the DfT has said it does not accept the term.

Martin Griffiths, who is the chief executive of Stagecoach Group said: “This is an important time for the future of the country's rail network. There are big challenges around costs and capacity, but also big opportunities for the whole country from a successful railway in helping drive economic growth.

"The rail industry, Government and other key stakeholders have a shared responsibility to deliver a better railway for Britain and I would like to thank Tim for the leadership he has shown over the past two-and-a-half years. The RDG, with its expanded and strengthened executive team, will be working even harder to champion improved services for both passengers and freight customers. At the same time, we will be at the heart of the push for better value throughout the industry for both rail users and taxpayers."

Tim O'Toole also paid tribute to Graham Smith, who resigned as the RDG's director-general earlier this year and was replaced by Michael Roberts.

Mr O'Toole said: “Having met the challenge laid down in the McNulty Study by delivering work that is proving critical to achieving the industry savings for the next control period, we have recently achieved a new level of industry cooperation. As Martin becomes the next chairman of the RDG, we all want to acknowledge Graham Smith's critical role in achieving this progress."