RAIL WATCHDOGS have hit out at a decision to award a three-year operating franchise to Stage-coach - the company that operates Island-line.

They say more patch-and-mend on the Island's railway would represent a "crushing blow" to passengers.

The Island's council has also expressed its disappointment at the decision by the Strategic Rail Authority to award a franchise to Stagecoach to operate the eight-mile Islandline until 2007.

But campaigners say the decision will give much-needed breathing space so further discussions can take place over the future of the route.

The Island's council had hoped that a franchise would be awarded to Stagecoach to run Islandline for 20 years - guaranteeing much-needed investment.

Earlier this year, a report recommended that lines to the Island's capital, Newport, and to Ventnor should be reopened - giving hope to campaigners that the lines would relieve pressure on the Island's roads.

Rail Passengers Committee for Southern England chairman Wendy Toms said high hopes were raised on the Island by the SRA's consultation for options on the future of the Islandline.

The study by the SRA stated the infrastructure and rolling stock, limited investment in improvements and upkeep was storing up costly trouble for the future.

Ms Toms said: "Our major worry is whether franchises as short as this will provide sufficient incentive for train companies to invest in high-calibre staff and training and to enhance stations.

"The shorter the train company franchise, the shorter the time the company has to reap revenue from such investments. However, the SRA is aware of this and says it is considering new mechanisms for rewarding companies that do take a long view, including the possibility of their franchise being extended."

The Island's executive spokesman for transport, Councillor Ernie Fox, said: "We are disappointed that the SRA has not been able to adopt a longer term view and to consider more flexible options we would like to see over the next three years. However, we must ensure that we take full advantage of this opportunity to secure a better future for railways on the Island."

He added: "We would like also to see a more comprehensive approach to all aspects of public transport to and on the Island with a variety of operators competing for the franchise, which would necessarily have a longer period to justify the required huge investment. This three-year extension allows more time to discuss these options."