Northern rail branded "completely unacceptable" by Transport Secretary
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Northern operates a service between Buxton and Manchester - running over 30 trains a day on the route.
Grant Shapps’ comments came during an interview with the BBC - as the government announced an average fare rise of 2.7 per cent for train tickets from Thursday.
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Hide AdThe rise will leave many commuters facing an increase of more than £100 for annual passes.
Northern has been dogged by cancellations and late services - with many slamming its outdated pacer trains as not fit for purpose.
Mr Shapps told the Commons transport select committee in October he had begun the process of putting Northern rail network back into public hands.
He told the committee how he had issued a ‘request for proposals’ from the company and the Operator of Last Resort.
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Hide AdThis could lead to Northern's service being brought under government control.
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Hide AdThe rail operator company has faced several issues in recent years - such as cancellations after the introduction of new timetables.
Northern’s managing director David Brown said the company had faced challenges outside its control in recent years.
One included the late delivery of major infrastructure projects such as the North West electrification.
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Hide AdMr Brown told the BBC: "Arriva and Northern remain fully committed to delivering the transformation of the North's railways and improving customers' experience.
“We are delivering the biggest transformation of local rail for a generation