A former government transport advisor has called for the role of the rail industry's watchdogs to be radically overhauled.

Transport secretary Alistair Darling is currently finalising a review of the structure of the rail industry and reports have suggested ministers are considering greater government control over the network.

And in an article published this week in Rail Professional, Tony Grayling said conflict between the Strategic Rail Authority and the Office of the Rail Regulator had "hampered" the industry.

Grayling, a former transport special adviser during Labour's early years in power and who is now associate director of the Institute for Public Policy Research, backed calls for public control of the rail industry to be increased.

"The development of the railways has been hampered by the government's Strategic Rail Authority having to second guess the independent rail regulator, which decides investment plans in the rail network," he writes.

"Since most of the funding comes from taxpayers, there should be a greater degree of public control."

He argues that the best outcome would be to strengthen the SRA by making it responsible for both planning investment in the network and regulating passenger services.

"Network Rail should effectively be under contract to the SRA to operate, maintain and renew the rail network, with the independent regulator acting as referee, ensuring fair play to passenger and freight train operators, rather than match fixer, deciding investment plans," Grayling says.

"The commissioning of regional and local train services should be devolved to regional and local authorities, over time as regional government develops, as in other European countries.

"This should also include room for 'microfranchises' for community rail services. Responsibility for coordinating the timetable should be handed to Network Rail.

"Independent safety regulation for the railways would better be combined with independent economic regulation in a single body, similar to the Civil Aviation Authority, which is both safety and economic regulator for its industry."