Network Rail was fined £4 million yesterday for what a judge called the “systemic and unacceptable” safety failures that led to the catastrophic Paddington train crash in which 31 people died.

Mr Justice Bean said that the fine should serve as a “constant and lasting reminder to the management of the company and to others involved in the railways of the paramount importance of safety and to prompt attention to any identifiable risk”.

But he added that no fine could put a value on the lives lost shortly after 8am on October 5, 1999, or on the continuing stress and pain of the bereaved or the 400 injured.

The accident happened at Ladbroke Grove, two miles west of Paddington station, when a local Thames train passed the partially obscured SN109 signal on red and smashed into a London-bound First Great Western express from Cheltenham.

The first carriage of the inter-city express, in which six passengers and Brian Cooper, the driver, died, burst into flames. The rest of the people who died were on the Thames train, including the driver, Michael Hodder, who had qualified only 13 days earlier.

The rail network operator had pleaded guilty at an earlier hearing to an offence under Section 3 of the Health and Safety at Work Act and appeared for sentence at Blackfriars Crown Court. Network Rail was ordered to pay £225,000 towards prosecution costs.

In April 2004, Thames Trains was ordered to pay a £2 million fine after admitting failure to ensure the safety of passengers and staff.

Ian McAllister, the chairman of Network Rail, which took over the legal liabilities of its predecessor, Railtrack, apologised for the disaster. He said: “The events of Ladbroke Grove will always be remembered and our thoughts must remain with the families and friends of the 31 people who lost their lives and those that were injured.

“The railways have seen huge change since 1999. Network Rail took over from Railtrack in 2002 and completed the installation of an automatic train braking system that would have prevented the Ladbroke Grove tragedy.”

In 2005, after representation from victims, the Crown Prosecution Service considered bringing corporate manslaughter charges. But the CPS later announced it had been influenced by the failure of manslaughter charges in a court case arising from the 2000 Hatfield disaster, and decided to press ahead with one charge under the Health and Safety at Work Act.

The injured and bereaved welcomed the end of the seven-year legal saga but deplored the failure to bring more serious charges. Linda di Lieto, 56, whose son Sam, 24, was killed on his way to work, said: “The amount of the fine is meaningless. The people who were responsible are still employed on the railway network.”

Jonathan Duckworth, 49, a businessman and the chairman of the Paddington Survivors Group, said that the Railtrack board and its management had failed the survivors, their families and those who were killed.

Mr Duckworth, who suffered kidney injuries in the crash, said: “We are angry it has taken over seven years to get here and we are angry that it has taken over seven years to have an apology offered to us.” Denman Groves, who lost his daughter Juliet, 25, said: “It does send the message that if you do not care about the safety of your customers then it will cost you.”

Chris Newell, the principal legal adviser to the Crown Prosecution Service, said: “Today’s sentence is the final act, in which Network Rail have been held accountable for the disastrous and inexcusable failures that led to the appalling tragedy of 5 October, 1999.”

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive