The Scottish Mail on Sunday

Now SNP pays £3m to private consultant­s ... to help run railway that it nationalis­ed

After ‘turnaround’ boss given £1m for failed bid to save ferry f irm...

- By Craig McDonald

THE Scottish Government is to hand millions of pounds to private consultant­s for advice on how to run the newly nationalis­ed rail service.

Transport Scotland has awarded a £3 million contract to Arup – a global firm headquarte­red in England – for ‘technical advisory services’.

The private consultant­s are being brought in at taxpayers’ expense despite the existence of an eight-strong ScotRail board, each earning an average of £165,000 a year, and a new Scottish rail holding firm whose chief pockets £120,000 for a threeday week.

The set-up has already faced criticism after it emerged that ScotRail’s chief operating officer, Joanne Maguire, was hired on a £175,000 salary despite having no experience of the rail sector.

We can now reveal that a contract for ‘rail technical consultanc­y services’ has been awarded to Arup to ‘support’ the new public railway in Scotland.

The contract states that the help ‘is required to carry out contingenc­y planning work’ as the ‘train operating company’ is moved ‘into the public sector’.

The Government-run railway has been beset by problems since its inception, including strikes which followed pay rows and vastly reduced timetables.

It is the latest example of taxpayers’ cash being lavished on nationalis­ed industries.

State-owned Ferguson Marine, which has stumbled from one catastroph­e to the next since being brought into public ownership by the SNP, paid now-exited ‘turnaround director’ Tim Hair £660,000 last year and £425,000 the year before.

Last night, Scottish Conservati­ve transport spokesman Graham Simpson said: ‘This is yet more evidence that the SNP Government had no idea what it was doing when it nationalis­ed ScotRail.

‘What was the point of taking it into public ownership if the next step was just to hand a private company millions of pounds of taxpayers’ money in order to tell it how to run the service?

‘The SNP clearly had no plan for how to actually provide, let alone improve, a rail service as we can see from the chaos that ensued.’

Earlier this month it was disclosed that ScotRail has an eight-strong board earning a total of £1,320,000.

It is headed by Alex Hynes, technicall­y a Network Rail employee but who has the title of managing director, Scotland’s Railway, and who earns £330,000 a year.

In addition to chief operating officer Ms Maguire, the board includes a safety, sustainabi­lity and asset director, David Lister, on £150,000 a year, a service delivery director, David Simpson, on £135,000, and a commercial director in Lesley Kane, who earns £130,000 a year. Mick Hogg, the RMT union’s Scotland organiser, described the sums as ‘obscene’.

He said: ‘Our members are annoyed by the size of these pay packets. They far outweigh what they bring to the table.’

Ministers faced criticism last year after hiring Ms Maguire on her mammoth salary despite her lack of rail sector experience. Ms Maguire, 42, was resources vice principal at the University of the West of Scotland and started her new role on day one of the state-owned train operator, April 1.

Kevin Lindsay, Scotland organiser with rail union Aslef, said at the time: ‘The appointmen­t of a chief operating officer with not one day’s experience from within the railway is staggering.

‘The Scottish Government has made a huge FIRM FOUNDER: Sir Ove Arup error before the first train has left the station.’

However, Mr Hynes said he was ‘delighted we have managed to secure Joanne’s agreement to join ScotRail’. He added: ‘She brings a wealth of leadership experience to this role, vital as we transition to the new public body’.

The new set-up sees ScotRail services provided via Government quango, Scottish Rail Holdings, headed by £120,000-a-year part time chief executive Chris Gibb, who works a three-day week.

Transport Secretary Michael Matheson brought ScotRail into public ownership after declaring the old system of rail franchisin­g was not ‘fit for purpose’.

The move was made through Transport Scotland, acting as an ‘operator of last resort’, after he decided against a franchise competitio­n to select a new operator following the end of Dutch company Abellio’s control in March.

Ministers stripped Abellio of the franchise three years early in the wake of repeated criticisms over service failings and rising costs.

A ScotRail spokesman said it had no comment over the consultanc­y contract. A spokesman for Arup also declined to comment.

A Transport Scotland spokesman said: ‘This contract is for the provision of rail technical consultanc­y services. Specialist technical support is required to carry out planning work, due diligence and/or shadow mobilisati­ons of train operating companies.’

He said the executives’ salaries are ‘commensura­te with market rates for senior leaders at organisati­ons on this size and scale’.

‘What was the point of taking it into public ownership?’

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 ?? ?? POWER TRIP: Nicola Sturgeon’s government took over ScotRail in April
POWER TRIP: Nicola Sturgeon’s government took over ScotRail in April

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