Labour's transport spokesman Des McNulty has hit out at SNP Transport Minister Stewart Stevenson following a critical report on the First Scotrail Franchise extension pushed through by the SNP last March. 

The report severely criticises Transport Scotland for not providing the Minister with a properly documented business case in relation to a contract from which First Scotrail will receive £2.5 Billion is public subsidy over 10 years. The government agency was also slammed for only making limited information about the contract and associated performance readily accessible to stakeholders and the wider public. 

Des McNulty said: 'Last March the SNP were heavily criticised for failing to consult over the extension of the franchise. They could have put pressure on to reduce fares and improve services but failed to do so. Instead they negotiated in secret a deal with First Scotrail which clearly benefits the company.'  

'It is now clear that many of the improvements it was claimed Scotrail would undertake in return for three more profitable years was work already planned. The £73.1 Million which the government claimed was additional money that would be used to invest in rail services may be used by the government to reduce its payments, giving no advantage to rail users'.  

'This is the Scottish government's most valuable contract, yet Ministers failed to demand a properly worked out business case. Why are SNP Ministers not being more careful with our money and making sure that the passenger gets a good deal? The government should not be using the franchise extension to replenish its own coffers at the expense of Scottish rail passengers.'

UPDATE 

MCNULTY CALLS FOR INVESTIGATION AFTER TRANSPORT CHIEF QUITS

Labour's Transport spokesperson Des McNulty has criticised the 'unacceptable' conflict of interest involving Transport Scotland's finance director, which has come to light after an Audit Scotland report into the handling of the First ScotRail franchise.

Labour's Transport Spokesman Des McNulty said:

"I do not see how Transport Scotland could carry on vital discussions about a contract worth hundreds of millions of pounds without involving their Finance Director.

"The auditors have raised serious questions about the unprofessional way in which this contract was rushed through without proper scrutiny or consultation.

"The public have an absolute right to transparency on the part of Transport Scotland and the Scottish Government. There appears to be a clear and unacceptable conflict of interest here that must be investigated further.

"Last March the SNP were heavily criticised for failing to consult over the extension of the franchise. They could have put pressure on to reduce fares, but failed to do so. Instead they negotiated in secret a deal with First ScotRail, which clearly benefits the company.

"This is the Scottish Government's most valuable contract, yet Ministers failed to demand a properly worked out business case. The government should not be using the franchise extension to replenish its own coffers at the expense of Scottish rail passengers."

ENDS

28 November 2008