Secret rail talks 'started 18 months ago'
Published Date:
07 May 2008
SECRET discussions over the controversial extension of the First ScotRail franchise started nearly 18 months ago because the company was performing so well, MSPs have been told.
Stewart Stevenson, the transport minister, said extending the Scottish Government's biggest contract by three years to 2014 was required to provide an incentive for the train operator to continue to make improvements.
Last month, he announced without consultation an extension to the original seven-year contract, to the anger of politicians and unions. First ScotRail will receive £2 billion of subsidy over the total contract.
The minister told Holyrood's transport committee yesterday that if the franchise had not been extended, the taxpayer could have lost £4 million and First ScotRail would have had no incentive to continue marketing rail travel to increase passengers further.
They have increased by 20 per cent to 80 million a year since 2004. Mr Stevenson said a new revenue-sharing deal would bring an extra £70 million of improvements.
The full article contains 168 words and appears in The Scotsman newspaper.
-
Last Updated:
06 May 2008 9:53 PM
-
Source:
The Scotsman
-
Location:
Edinburgh
-
Related Topics:
ScotRail
,
The railways