ScotRail given massive public handout despite their long track record of failings
previous three months. Abellio took over ScotRail in April 2015 and made profits of £9.5million in the first nine months.
That led critics to accuse it of profiteering, though in 2016 the company ran at a loss of more than £ 3million. Former transport minister Humza YousYousaf spoke out in favour of a public bid ffor the contract two years ago. AbeAbellio has a 10-year deal that ends in 22025. But it can be terminated in 2022 if targets aren’t met.
In 2016, the Sunday Mai l revrevealed documents that showed AbellioAb management admitting the company was being run for the benefitbene of commuters in Holland.
EngelhEngelhardt Robbe, chief financial officerffiffi of Utrecht-based Nederlandse Spoorwegen (NS), who own Abellio, said passengers in the Netherlands must benefit from the firm’s work overseas.
A ScotRail spokesman claimed the 22 per cent increase in franchise payments was built into the original contract because of Network Rail “fixed track access charges” which increase over time. He added: “ScotRail charges increase from £ 85million in the first three years to £140million in 2017/18.
“This meant we had a significant increase in our cost base during 2017. These were known at the time of the bid and so the financial support profile for the ScotRail franchise covers the increase in Network Rail costs.”
Transport Scotland added: “The report does not break down the various increases for fixed track access which went up significantly in 2017/18 and explain the increased payment.
“The ORR report merely ref lects previously published data on franchise payments, something we have been open and transparent about.
“It also highlights our commitment to f inancing improvements for passengers with a raft of new services, trains and improvements in the pipeline.
“That said, Abellio ScotRail know that they must do better, which is why ministers hold them to account within the terms of the franchise agreement, including the ability to end the contract if terms are not met and it is in the public interest to do so.”