How your rail fare will pay for better trains... in Holland
Record prices to help fund £2bn upgrade
RECORD ticket prices being paid by Scotland’s commuters are to help fund a £2 billion upgrade of trains and stations – in the Netherlands.
A report seen by The Scottish Mail on Sunday says passengers in Holland can expect to see massive improvements – at the expense of rail users here.
The upgrade was revealed in a report on heavy investment planned for Dutch railways.
It makes clear Abellio is run in countries such as Scotland so profits can flow back to the parent company, Nederlandse Spoorwegen (NS), and ‘benefit Dutch passengers’.
The NS report will be galling for Scottish rail travellers who routinely endure delays, standing-room only carriages and late trains bypassing stations – despite ticket prices reaching a record high in January.
The report says: ‘We will be increasing the capacity of our rolling stock, and are investing €2.5 billion (£2.1 billion) in expanding and renewing our fleet. We are ensuring that as many trains as possible are in the right place, have the right number of seats, are in good technical order and are clean inside and out.
It adds: ‘Abellio makes a profit on its activities which flows back into NS Group, which, in turn, benefits Dutch passengers.’
Abellio ScotRail insists it has not funnelled any profits back to NS yet, as it is planning its own £475 million investment in Scottish railways, which will see 90 per cent of trains new or fully refurbished by 2022.
But its latest accounts show a £9.5 million post-tax profit in the 12 months to December 2016 – and NS will expect a return on its investment.
Scottish Labour transport spokesman Neil Bibby said: ‘Transport Minister Humza Yousaf needs to restore public confidence. We need a public transport system that puts passengers first and the case for a people’s ScotRail gets more compelling by the week.’
RMT general secretary Mick Cash said: ‘This is a cast-iron example of the great rail rip-off, where taxpayers’ and fare payers’ money is being shipped out of Scotland to prop up rail operations by a company in another country.’
Abellio refused to say how much money would be returned to NS or when. A spokesman
‘An example of the great rail rip-off’ ‘Money shipped out of Scotland’
said: ‘We are investing £475 million in Scotland’s railways. Only when we have completed this can any profits be returned to the shareholders.’
A Transport Scotland spokesman said: ‘The franchise agreement ensures Abellio are prevented from making excessive profits. Once they make a profit above a defined level, they pay 50 per cent of profit above that to the public purse.
‘Performance has improved over the last six reporting periods. With our investment in rail infrastructure and rolling stock, this will deliver a railway passengers deserve.’