LABOUR must resist calls to keep the railways in private hands, rail union TSSA said yesterday — as yet another profiteer launched a tirade against public ownership.

After party bigwigs refused to take rail franchises back into public ownership as they expire, Labour’s national policy forum agreed last month that the state should be able to bid against private companies.

Under Labour plans a new “guiding mind” for the railways would also oversee track, franchising, fares, ticketing and rolling stock.

But in an interview for the Financial Times, profiteer Go-Ahead’s chief executive David Brown said he was concerned the process would not be transparent.

And he questioned where government would find the money for expensive franchise bids.

“Where’s your cost of capital, and if you bid incorrectly, who’s picking up the bill?” he said.

Go-Ahead runs the London Midland, Southern and Southeastern franchises jointly with French firm Keolis.

Mr Brown is the third boss of a private rail firm to get defensive about public ownership since Labour announced its plans.

Stagecoach chief Martin Griffiths said a state competitor would deter privateers from bidding.

And in an outburst earlier this month, National Express CEO Dean Finch said rail corporations could sue a future Labour government over the proposals.

TSSA general secretary Manuel Cortes has repeatedly warned that private firms will do all they can to hold onto the railways — and to ensure a planned review of franchising finds in their favour.

“Labour’s promised review should not preclude scrapping franchising if this in the public’s interest,” he said.