A RENATIONALISED train service should be based on a European model rather than the old British Rail one, according to a new report.

Scotland should have a continental-style, arms-length, publicly-owned rail company where

workers and passenger representatives would sit on the board of the firm.

The report, A public future for Scotland’s railways, by the TSSA transport union is due to be published on Tuesday in Edinburgh.

It highlights the example of publicly-owned rail companies in Germany, France, Italy and Finland.

Transport Minister Humza Yousaf is reviewing a series of options including a public sector bid to take over Scotland’s railways, when the contract held by Dutch firm Abellio ends.

However, the TSSA says there should be no return to the British Rail system that existed from the late 1940s until privatisation in the early 1990s. The report says the old structure was too top down, monolithic and management dominated. That form of nationalisation would be a "missed opportunity" to make rail more accountable to the public.

Instead ministers should set up a publicly-owned rail firm, the TSSA says.

Such a system of rail ownership exists with Germany’s Deutsche Bahn, France’s SNCF, Italy’s Trenitalia and Finland’s VR Group, the report adds.

It says: “If a new arms-length Scottish rail operator was simply to emulate the governance structure of British Rail, however, this would be a missed opportunity to incorporate greater responsiveness and democratic accountability."

The TSSA calls for "accountability to the public".

Its report adds: "This accountability should be reinforced by a board structure reflecting the importance of the railways to workers, passengers, the public and various local and environmental groups.

“Such a structure would represent a radical move in the direction of public accountability in comparison to past models of rail governance in Scotland. It would not, however, be without parallels elsewhere in the UK and Europe.

"The most common form of public-sector rail governance internationally is through the presence of a dedicated arms-length rail company, such as Germany’s Deutsche Bahn, France’s SNCF, Italy’s Trenitalia or indeed Finland’s VR Group."

Transport minister Yousaf was forced to apologise to passengers following criticism of ScotRail over widespread disruption last winter.

Last night, a spokesman for Yousaf said: ”We are taking steps to ensure that a public sector operator is able to bid for a future rail contract and that there is a public sector body able to do so.

"This will enable us to ensure the delivery of rail services in Scotland that deliver maximum economic and social benefit.”

ScotRail owner Abellio said the company was prepared to compete with public sector bids to run Scotland's rail services. A spokesman said: “As we have indicated previously we have no problem competing with a public sector bid should that be what the Scottish Government decides to do.”