Posted 22nd April 2008 | 1 Comment

Scottish Minister criticised over ScotRail franchise extension

John Swinney

Scotland’s Finance Minister has said he decided to award a four-year extension of First Group’s ScotRail franchise without public consultation because of the potential damage that might have been caused to First Group's share price.

The Minister, John Swinney, was speaking at the conference of the Scottish TUC after unions had criticised an announcement during the Easter recess that First ScotRail's franchise is being extended until 2014.

The Labour party branded it a "hole in the corner exercise" and rail unions complained at a lack of consultation.

Before addressing the STUC, the finance secretary held private meetings with representatives from four rail unions—Aslef, RMT, TSSA and Unite. Mr Swinney admitted afterwards that the meeting had involved a "frank exchange of views."

The Finance Secretary said he took the decision because of the potential damage that might have been caused to First Group's share price if he had announced a consultation.

The rail unions demanded assurances that it would never happen again. Mr Swinney said he would look at the circumstances around the decision to see if there was anything that could be done to prevent a repeat.

After his speech to the STUC, the RMT’s Phil McGarry, speaking fromn the platform, told Mr Swinney to "get better at your job."

Reader Comments:

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  • Gordon J, Glasgow, UK

    I was gutted at this - I was already counting the days until First were hopefully ousted following their appalling customer service. Not knowing fare rules and increasingly cancelling stops on the Glasgow-Edinburgh line to keep to time and improve the statistics (whilst not actually providing a service, so never mind the passengers) just isn't acceptable.

    Can someone tell me though, since when do the Scottish Goverment (or "Big Cooncil" as I call it) have to worry about First's share price? That alone sounds like tacit acceptance that if there had been a proper review, First would have got a kicking in the press.

    It's hardly surprising though - First have Passenger Focus in their pocket and now, it seems, the SNP administration.