Scottish Labour leader Iain Gray accused Alex Salmond of running government on "a nod and a wink" and called on the First Minister to appear before the Audit Committee next week to answer questions on the extension of the Scotrail franchise.

Iain Gray:

"Last week the Audit Scotland report was scathing about the Scottish Government's handling of the franchise extension and there was the resignation of a senior Transport Scotland official over a conflict of interest. This is a contract involving £2.5bn of taxpayers' money. 215,000 passengers a day depend on the service and they have just seen their fares soar.

"The government's biggest contract was extended with no consultation, no assessment criteria and, most damning of all, no business case.

"Audit Scotland say: 'Transport Scotland did not provide the Minister with a fully documented business case, taking the view that presentations were more appropriate'.

"This is public spending by PowerPoint.

"We need to know if the Transport Minster did not feel there was the need for a business case. Did the Finance secretary not ask to see the business case? Did the First Minster not ask to see the business case? Did nobody in the cabinet think to ask what the business case was? Did the First minister sign off this decision and if so on what basis?

"There was widespread concern in April (2008) when the Scottish government suddenly announced the extension. No consultation with passengers, no consultation with the workforce, no consultation with anyone. Audit Scotland was scheduled to review the operation of the franchise but Ministers could not be bothered waiting for that either.

"We have been here before. Too many questions, too many times, about the way this government does business.  There was the First Minister's cack-handed intervention in the Trump affair. Five ministers involved in a planning application in Aviemore and headlines alleging cronyism over grants.

"And now a multi-billion pound contract with no business case and a conflict of interest at the heart of it. This government believes that the normal rules of transparency and good governance do not apply to them. A nod and a wink will do.

 "The Audit Committee if this parliament will want to consider this report. The First Minister should appear before them and answer their questions."

4 December