Abellio’s contract to run ScotRail services will come to an end in March 2022, the Transport Secretary has confirmed.
Michael Matheson told MSPs that the Dutch-based company’s franchise, which was due to run until 2025, will be terminated early as the Scottish Government exercise a break clause.
In a statement, the Transport Secretary said Abellio had been informed of the decision.
He said ministers had opted not to continue with the current franchise because they were “not satisfied that the significant increase in public subsidy that would otherwise be required, would generate commensurate benefits for passengers, communities and the economy”.
Mr Matheson said Abellio had “successes and challenges” over the first five year of the ScotRail franchise.
“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 said.
“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.”
One of the options, he said, was the public sector running Scotland’s railways.
Mr Matheson also confirmed, in response to Tory MSP Jamie Greene, that staff will transfer over to any new operator at the end of the Abellio contract.
Opposition parties, as well as many rail passengers, had called for the company to be stripped of the contract, feeling they had been let down by poor service.
Abellio insisted ‘significant progress’ had been made since they took over in 2015, and agreed to an improvement plan after being served with a remedial notice.
Scottish Labour’s Colin Smyth said: “Having voted with the Tories to block moves by Scottish Labour to end Abellio’s failing franchise, the SNP have at last backed our calls.
“They now need to ensure that a public sector operator will be properly prepared to take on the contract and put passengers not profits first.”
Green party transport spokesman John Finnie said: “Scottish Greens welcome the decision to bring an end to the Abellio ScotRail franchise. Delays, cancellations and overcrowding have occurred far too often on Scotland’s railways in recent years.
“The Scottish Government must now ensure that a robust public sector bid is in place so that our railways can be run in the public interest in future, rather than for private profit as now.”
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