LABOUR big-hitters could join forces with rail privateers to keep the industry in the pockets of big business, campaigners warned yesterday.

Transport and Salaried Staffs Association general secretary Manuel Cortes said profit-making rail franchisees would do all in their power to ensure the party’s promised review of the franchising system was fudged in their favour.

Delegates at the party’s national policy forum earlier this month insisted the current system of private bids for rail networks should be placed under scrutiny. But party bosses have refused to restore operations to a renewed British Rail.

Instead, the party has promised a “level playing field” in the bidding process — where the state will bid against private firms for regional contracts.

Mr Cortes told the Morning Star: “Our view is that any review that is truly objective and puts passengers and taxpayers first can only come to the conclusion that the franchises should be taken back into public ownership as they expire.

“But we know the industry will organise to make sure that doesn’t happen.

“And we must make no bones about it — there are people in our own ranks who will oppose public ownership.

“We need to beat those who say there’s a market solution to everything. We will work flat out to ensure the review isn’t given to an industry stooge.”

Mr Cortes has circulated a report to his members urging them to step up the campaign for public ownership.

Insiders fear that Labour’s franchising review could go the same way as a review by former rail privateer chief Richard Brown published last year, who concluded in favour of the private sector.

Transport commentator Christian Wolmar warned against Labour choosing a “very safe, Hutton-style pair of hands” for the review.

“It all depends who is commissioned and what is the mark of success,” said Mr Wolmar, who is seeking Labour’s nomination for London mayor.

“Franchising has added little commercial value for the taxpayer, but you could say it’s been great for the industry and the franchisees.

“I can see the battle continuing well beyond the election. It’s a shame the party won’t commit to something more solid right now.”