The Scottish Government has announced that FirstGroup has had its contract to run the ScotRail franchise extended for three years to November 2014.
The extension includes plans for £70m worth of new services and enhancements to the rail network, including the extension of express services between Edinburgh and Glasgow and additional early morning services to allow passengers from Dumfries, Gourock, Ayr, Kilmarnock, Dunblane, Perth and Kirkcaldy to connect to services arriving in London before noon.
The deal with FirstGroup will also create and manage a £1m “community fund” to encourage small businesses and local communities to make the best use of empty station buildings.
Announcing the deal, Minister for Transport Stewart Stevenson said: "I am delighted to announce this agreement reached between Scottish Ministers and First ScotRail which brings significant benefits to passengers and delivers value for money for the taxpayer.
"It provides further incentive for the operator to continue to grow Scotland’s railways but, importantly, protects passengers by introducing a cap after which a percentage of profits will be reinvested in services.
"This agreement has secured performance levels for the remainder of the franchise term and will see more than £70m being returned to the Government for reinvestment over the same period.
"A set of exciting and varied initiatives has been secured at best value which we will implement as efficiently as possible over the life of the franchise."
Mary Dickson, First ScotRail's managing director, said: "I am delighted for our staff and our customers who will see real benefits from the franchise extension. It is a fitting tribute to the ongoing transformation which has seen improved performance, with a 50 per cent reduction in delays, and a 19 per cent increase in passenger numbers.
"We will now build on these successes with even more investment in Scotland's railway. Customer benefits will range from new train services and improved journey times to enhancements at stations.
"I am also delighted we will be involved in providing transport for the Commonwealth Games in 2014."
James King, of Passenger Focus, the independent rail consumer watchdog, said: "Scottish commuters and business users will welcome the benefits of services starting earlier and finishing later in the day from a variety of locations in Scotland to improve long distance connectivity, an extension of the 15 minute frequency between Edinburgh and Glasgow and additional services from Inverness."
Moir Lockhead, FirstGroup chief executive, said he was delighted that the Scottish Government had taken the decision to extend the First ScotRail franchise for three years.
“Since the start of the franchise in October 2004 we have invested more than £25m in Scotland's railway. More and more people are choosing rail as their preferred means of travel. The number of passengers using First ScotRail services has grown by 19 per cent and performance has improved significantly with delays caused by First ScotRail reduced by 50 per cent.
"Our First ScotRail staff, led by Mary Dickson and her team, work hard to deliver excellent customer service. First ScotRail's commitment to deliver the best service for Scotland every day has driven a programme of continuous improvement and led to this franchise extension."
However, STUC general secretary Grahame Smith said: “It is hugely disappointing that the Scottish Government saw fit to make this announcement without any prior consultation with those who actually deliver the services.
“Little over a month has passed since an STUC delegation met with Stewart Stevenson to discuss, amongst other important transport issues, the future of the franchise. The Minister gave no indication whatsoever that an announcement was imminent and it stretches all credibility to believe that negotiations had not started at that point. Ironically, the Minister did fully commit to consultation and dialogue with trade unions on transport issues.
“The STUC will continue to argue that only a publicly owned and integrated transport system, run wholly in the public interest, can fully meet Scotland’s transport needs. It is wholly unacceptable that the new Scottish Government has announced this extension without any consideration of other models. This makes a mockery of the SNP’s previous commitment to running Scotland’s railways on a not for profit basis.”
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