Half of Britain’s rail services would be brought back within public control under a plan to strip train companies of the right to set fares , timetables and quality standards across London and the Home Counties (link below.)
http://www.timesonline.co.uk/tol/news/politics/article2903879.ece

Ken Livingstone , the Mayor of London , is preparing to submit a bid next year to take over most of Southern , one of the biggest train franchises , from 2009. He is also drawing up plans to take control of all commuter trains that terminate in the capital , including those that start their journeys well beyond Greater London.

The Government is committed publicly to maintaining the current franchising system , but ministers believe privately that Mr Livingstone’s model may deliver a better long-term structure for the rail industry.

Speaking to The Times , Mr Livingstone said: “I am optimistic that TfL will end up controlling all the franchises in Greater London. We want to get the same standards we are introducing on London Overground on all services and I am confident of getting a sympathetic hearing from the Government.”

Mr Livingstone said that once he controlled the wider network , fares would be set at a level to attract passengers rather than to maximise profits. He ruled out raising fares sharply soon after winning a franchises, such as the 20 per cent increase on South West Trains in May.

But Mr Livingstone admitted that the quality of service he wanted would require a continuing high level of public subsidy. “If you try to run these services for a profit you get a pretty miserable level of service. Every time I got on a North London Line train, half the seats weren’t even bolted to the base and fell off when you sat down.”

Under the plan , private companies would still operate the trains , but would have very little commercial freedom. They would receive a management fee and pay penalties or receive a bonus depending on their success in achieving standards set by TfL.

Ken Livingstone is in talks with the government over ambitious plans to extend his London transport empire by absorbing one of the capital's most lucrative rail franchises (link below.)
http://www.guardian.co.uk/politics/2008/mar/10/london08.transport

The mayor of London is confident of securing the inner-city portion of the Southern franchise as part of his Overground rail network after talks with No 10 and the Department for Transport. The proposal has met with strenuous opposition from train operators and is believed to have concerned some officials within the Department for Transport, who are worried about the complexity of splitting one of the capital's biggest franchises in two.

However, transport secretary Ruth Kelly has told officials the she wants "the best possible deal for Londoners" and is interested in the plan. Livingstone's Transport for London body took over part of the former Silverlink franchise and rebranded it as the London Overground network last year, but the route operated within London only.

The Southern metro route, which runs from London's Waterloo and Victoria stations to Croydon and Dorking, would be the first step in Livingstone's strategy of controlling all franchises operating in and out of the capital. TfL would set fare and service levels while outsourcing operation of the franchise for a fixed fee.

The DfT and TfL declined to comment, but the debate over Southern's future is thought to be behind the delay in re-tendering the franchise, which expires next year. Livingstone is also believed to have secured backing for the Southern proposal from No 10.