The collapse of Railtrack has cost a council pension fund more than £1 million.

Tory councillor Geoffrey Theobald asked questions about the East Sussex Pension Fund after Transport Secretary Stephen Byers intervened over Railtrack last month, including the effect on Brighton and Hove.

Assistant Brighton and Hove resources director Chris Taylor said the pension fund held 270,700 shares in Railtrack and these were worth £1,037,456 when the shares were suspended.

He added it was inevitable the fund would hold some shares in Railtrack but that the holding was small compared with the overall value of the fund at £1 billion.

There was no immediate effect on Brighton and Hove City Council, one of the employers contributing to the fund, as valuations were carried out only every three years.

He added that the potential loss to the pension fund through Railtrack was not yet known but there was unlikely to be a significant recovery of capital invested.

The Railtrack holding would have some impact on the fund's valuation in three years' time but there were always ups and downs because of its size.

Coun Theobald said: "There has been a big loss to the pension fund through the action of Mr Byers.

"It has affected everyone connected with this pension fund and other people too."