I'm PG rep for my department where I'm undertaking a Phd. One of my colleagues, and friend, has been doing research for two years without seeing a penny of funding from his supervisor who has recently got a new Phd student, who is funded, and has refused industry linked reserch even though this work would have been related to the Phd work... Naturally I'm over simplifying the situation but does my friend have the right to take any kind of action- in specific legal action?

The new student may have a different source of funding. Your friend knew that the position wasn't funded when he/she started, so why should they be entitled to anything now? By all means ask the supervisor, but I doubt anything will come from it. As for legal action, thats a bit drastic, considering your friend shouldn't want to upset the supervisor

It doesn't sound like your friends supervisor has done anything illegal. As Stu says, the funding for the new student may not be applicable to your friends' research project. There is probably a lot more to this than you have had room to write here. Try contacting the National Postgraduate Committee for advice.

From what you've said, I'm with Stu. The supervisor is under no obligation to provide funding or take on research projects for his students unless agreed to when your friend applied