MSPs quiz firm’s boss over payment timing

ScotRail was handed an advance payment of taxpayer funding despite concerns over falling performance levels, it has emerged.

Bosses of the rail franchise were questioned by Holyrood’s rural economy and connectivity committee yesterday over the quality of service in Scotland.

It comes ahead of a vote in Parliament on whether to exercise the break clause in the ScotRail franchise contract.

Scottish Conservative MSP Jamie Greene raised the question of whether payments by the Scottish Government and Transport Scotland had been brought forward from the due date of April 2019.

ScotRail Alliance director Alex Hynes said the company had not received any payments it had not been due. Mr Hynes was then asked by Liberal Democrat MSP Mike Rumbles to answer specifically whether these payments had been made ahead of the agreed due date.

Pressed yet again, Mr Hynes answered: “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. But that does not change the net amount of taxpayer subsidy to the franchise and it’s worth saying that these commercial discussions happen all the time between ScotRail and the Scottish Government and those changes are just one of the changes we discuss at regular intervals with Transport Scotland officials.”

Figures last month showed ScotRail’s performance at its lowest level since the franchise began.

A Scottish Government spokeswoman said: “Any notion ScotRail is receiving additional money is wrong – this commercial arrangement presents no additional costs to taxpayers other than those contractually obliged.

“The rephasing, less than 10% of the total due in year five, is appropriate under the terms of this contract, which is vital to the fabric of Scotland’s transport network.

“The rephasing reflects the delays in revenue growth caused by the late delivery of Network Rail electrification, as well as the extended impact of the Queen Street tunnel closure period.”