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Abellio ScotRail contract to be ended early Abellio ScotRail contract to end three years early
(about 1 hour later)
Transport Secretary Michael Matheson has confirmed the Abellio ScotRail contract is to end early, in 2022. Abellio ScotRail's contract to run train services in Scotland will end early, Transport Secretary Michael Matheson has announced.
The Dutch operator has been running the service since 2015 but has faced criticism over cancellations and performance levels. The Dutch firm has been running the franchise since 2015 but had faced criticism over cancellations and performance levels.
The firm was contracted until 2025, but Mr Matheson said a so-called "break clause" would be used to end the franchise in March 2022. The contract, worth more than £7bn over 10 years, was due to last until 2025.
He told MSPs he was looking at other options, including the public sector. But Mr Matheson said a so-called "break clause" would be used to end the franchise three years early, in 2022.
There had been political pressure on ministers over the service provided - with Labour highlighting a high number of cancellations, overcrowding and the cost of tickets. He told MSPs he was looking at other options for the future, including the franchise being run by the public sector.
ScotRail operates about 2,400 train services a day, and covers all services in Scotland except those run by other operators which cross the border.
There had been political pressure on ministers over the service, with Labour highlighting a high number of cancellations, overcrowding and the cost of tickets.
In a statement to the Scottish Parliament, Mr Matheson said a proposed increase in government subsidy for the service would not deliver sufficient benefits to passengers or the economy.In a statement to the Scottish Parliament, Mr Matheson said a proposed increase in government subsidy for the service would not deliver sufficient benefits to passengers or the economy.
Mr Matheson said Abellio had "successes and challenges" over the first five years of the ScotRail franchise Mr Matheson said Abellio had "successes and challenges" over the first five years of the ScotRail franchise, but that his decision was "the right one for passengers, communities, the economy and taxpayers".
He said: "I believe that the decision I have advised the parliament of today, in respect of the ScotRail franchise, is the right one for passengers, communities, the economy and taxpayers." He confirmed the contract would now run until 31 March, 2022.
"It is of course necessary to plan for the future provision of ScotRail services and I can confirm that work is already under way to examine the options open to the Scottish ministers after the current contract comes to an end. " "It is of course necessary to plan for the future provision of ScotRail services and I can confirm that work is already under way to examine the options open to the Scottish ministers after the current contract comes to an end," he said.
'Wrong choice' The franchise system for Britain's railways is grinding to a halt.
Dominic Booth, managing director of Abellio UK, said the firm was "hugely disappointed" by the decision and it was the "wrong choice for Scotland's Railway and its customers". The Scottish government has jammed on the brakes earlier than the Westminster one, but there's change coming there too.
He said: "Abellio has invested more than £475m in new and upgraded trains, added 23% more seats for customers and created more than 500 extra jobs in Scotland since the start of the franchise in 2015 - the biggest investment in trains and stations in over 150 years. That's behind the ending of the Abellio franchise in March 2022, but the reason given to MSPs stuck carefully to the contractual option on doing so.
"Our offer to Transport Scotland would have delivered an improved service for our customers at a reduced cost to the taxpayer." This was not being associated with the shortcomings of Abellio's handling of the franchise since 2015.
But Scottish Labour welcomed the decision, which follows a campaign by the party to end the franchise early. That would be open to legal challenge. Such a challenge would point out that the service has improved in the past year, with the arrival of new trains, adding more capacity. There's a new station in north-west Glasgow and improvements to the Aberdeen-Inverness service have just begun.
Colin Smyth, the party's transport spokesman, said: "For years Scottish Labour have campaigned to end Abellio's shambolic spell in charge of Scotland's railway. What happens next? Abellio is obliged to continue the service until the franchise ends.
"Twice Scottish Labour have forced votes on Abellio's control of Scotrail and time and time again we have been voted down by the SNP, ably supported by the Tories." The Williams Review, led by businessman Keith Williams and commissioned by the Department of Transport in London, is soon to be published, and is expected to start a big shift away from the franchise bidding system. He has talked of aligning the interests of train operators and Network Rail, and doing far more to address passenger demand. Pricing for tickets is expected to be shaken up.
"What we now must know is if the Scottish government intend to make a serious public sector bid for control of ScotRail or whether our railways will be flogged off once more to a foreign-based private company, focused only on profit." In Scotland, there is pressure within the SNP, from unions, Labour and Greens, to put ScotRail operations in public hands. If there's to be another franchise, the government previously said it wants a public sector bidder for it. If there is to be one from April 2022, it will have to get up and running very soon.
Mr Symth said "nothing less" than a publicly-owned rail system would deliver an efficient and reliable public transport system. Dominic Booth, managing director of Abellio UK, said the firm was "hugely disappointed" and that the decision was "the wrong choice for Scotland's Railway and its customers".
Scottish Liberal Democrat transport spokesman Mike Rumbles said: "Passengers are sick to the back teeth of the poor service that has been provided by this company. He said the company had invested more than £475m in new and upgraded trains and created more than 500 extra jobs in Scotland.
"Overcrowding, endless cancellations, stop skipping and delays have gone on too long. Mr Booth added: "Our offer to Transport Scotland would have delivered an improved service for our customers at a reduced cost to the taxpayer."
"The government must now take action to make sure that there is stronger protection for customers in the future franchise agreement." But Scottish Labour welcomed the decision and called for the rail system to return to public ownership.
Mr Rumbles also called for the inclusion of more break points in the new contract to ensure there is a much better chance to addressing poor performance earlier. Colin Smyth, the party's transport spokesman, said Abellio had presided over a "shambolic spell".
'Admission of failure' He added: "What we now must know is if the Scottish government intend to make a serious public sector bid for control of ScotRail or whether our railways will be flogged off once more to a foreign-based private company, focused only on profit."
'Absolute failure'
Scottish Liberal Democrat transport spokesman Mike Rumbles said the company had provided a "poor service".
He added: "The government must now take action to make sure that there is stronger protection for customers in the future franchise agreement."
Scottish Conservative shadow transport minister Jamie Greene described the termination of the contract as "an admission of absolute failure" by the SNP.Scottish Conservative shadow transport minister Jamie Greene described the termination of the contract as "an admission of absolute failure" by the SNP.
He added: "These have been wasted years for Scotland's train services, and now we have the risk of the quality of services nosediving even further.
"Commuters have had to ensure delays, cancellations and uncomfortable journeys - often for an eye-watering price.
"The SNP have pulled the rug from under the feet of the franchise holder, have no clue who will be running our railway post 2022 and have many questions to answer over the uncertain future of Scotland's rail."
Kevin Lindsay, organiser for the train drivers' trade union Aslef in Scotland, claimed Abellio had let down passengers and staff.Kevin Lindsay, organiser for the train drivers' trade union Aslef in Scotland, claimed Abellio had let down passengers and staff.
He added: "Those of us on the front line - ScotRail train drivers and other railway staff - can see every day how the company comes up short. He added: "The truth is that the franchise model is a broken business model. It hasn't worked, it doesn't work and it will not work. Everyone on the railway understands that."
"We are disappointed that the SNP government has not grasped the real problem - and the solution to that problem - and simply taken this opportunity to bring Scotland's railway back into public ownership.
"The truth is that the franchise model is a broken business model. It hasn't worked, it doesn't work and it will not work. Everyone on the railway understands that."