SCOTRAIL GOT £23m BAILOUT
Firm given public cash to plug gap in budget
SCOTLAND’S train operator were given £23million in taxpayer cash from future budgets to plug gaps in finances.
Alex Hynes, director of the ScotRail Alliance, confirmed the use of “revenue support” to MSPs one day after the Record exposed the practice.
The arrangement was made because Dutch firm Abellio are not making as much cash as expected.
Speaking at Holyrood’s rural economy and connectivity committee, Hynes said: “It’s true to say that ScotRail has received some revenue support payments, which it is contractually due from April next year in advance of April next year.”
He added that “these commercial discussions happen all the time between ScotRail and the Scottish Government.”
A ScotRail spokesman added that “no extra money has been received”. He said: “Payment has been brought forward and will be reduced over time in accordance with the franchise agreement.”
Abellio won the franchise from April 2015 to 2025 but there is an option to end it in 2022.
Last night, SNP and Tory MSPs teamed up to reject calls by Labour to break the contract as soon as possible.
Colin Smyth, Labour’s transport spokesman, said: “Hard pressed passengers across the country will be disgusted to see the SNP and the Tories block Labour’s plans to end the privatisation of Scotland’s railways.”
Connectivity minister Paul Wheelhouse said: “It’s very important not to lose sight of the significant improvements that ScotRail have delivered and of the further improvements this contract is on the cusp of delivering.”