NETWORK RAIL’S £1.5 billion sale of thousands of railway arches was a “stupid move” that put small businesses and the railways in financial jeopardy, the RMT has said.

The union’s general secretary Mick Cash accused Network Rail and the Department for Transport (DfT) of not “giving a toss” about the financial stability of Britain’s railways.

Mr Cash made the comments after the House of Commons public accounts committee (PAC) released its report yesterday into the sell-off of 5,261 railway arches.

The PAC found that Network Rail and the DfT got a fair price in February when it sold off the railway arches, which were being used as commercial spaces.

However, it found that neither the government nor Network Rail considered the interests of the small businesses in the arches until it was “far too late” in the negotiations.

It also warned that there was “uncertainty” about the long-term value of the sale, as the properties may need to be bought back for future projects.

Labour MP and committee chair Meg Hillier said: “The government took a short-term decision to sell a profitable asset to plug a funding gap in Network Rail’s budget.

“The Department for Transport failed to consider the interests of tenants until far too late in the sale process, despite them being those most affected by the sale.

“This is another case of government failing to see the big picture.

“It did not recognise the potential of the arches to further its industrial strategy and support small and medium-sized enterprises.”

Mr Cash told the Star: “The RMT warned from the off that this sell-off was a stupid move that would undermine both Network Rail’s income stream and the livelihoods of those small businesses who rent arches and other accommodation.

“This was a classic case of the Tories flogging off important assets to their speculator mates without giving a toss for ‎the long-term implications.”

A government spokesman said: “This sale ensured that Network Rail can continue its long-term investment to improve our railways, and that the diverse, independent businesses in rail arches will continue to thrive.

“The National Audit Office recognised this sale was not only a fair price, [but also] delivered more than expected and represented value for money.

“We will consider the recommendations and respond in due course.”