THE BOSS of a disgraced transport giant revealed yesterday that privateers could sue a future Labour government — if Ed Miliband goes ahead with plans to award rail franchises to the state.

National Express chief executive Dean Finch blasted the Labour leader’s plans to allow state and private rail operators to compete on a “level playing field,” saying they had provoked fears among city spivs.

The outburst follows warnings from campaigners — reported in last Friday’s Morning Star — that the private sector will attempt to wrest control of Labour’s promised review of the “failed franchising system.”

“This thing will take years to work through because there will be a ton of questions and I’m sure they will get challenged,” Mr Finch told the Sunday Telegraph.

“So that will delay the whole thing again. Is that really good for the railways? Just for some ideological dogma?

“It just seems utter nonsense to me.”

Infamous National Express walked away from the East Coast mainline in 2009, complaining that the premiums it paid to the government were too high.

Transport and Salaried Staffs Association general secretary Manuel Cortes said: “Dean Finch’s comments give yet another good reason why franchising must go.

“We don’t want the Labour government embroiled in needless litigation.

“The privateers know an objective review would confine franchising to the dustbin of history. They will do anything they can to ensure this doesn’t happen.

“But while some will fight hard to keep the status quo, it’s good to see others saying that they will simply walk away. We say good riddance!”