Date lodged: 11 December 2017
To ask the Scottish Government what its position is on whether ScotRail should be a profit-making franchise.
Answered by: Humza Yousaf 3 January 2018
The structure of rail franchising in the UK as determined by the Railways Act 1993 and as amended by the Railway Act 2005, recognises the right of the Franchisee to make profit. However, profit is not guaranteed for ScotRail, they must manage the services and meet our highly specified service requirements efficiently and effectively to make the profit they have forecast and where they do not, they will make much less, or a loss.
The Scottish Government ensured that the Franchisee is prevented from making excessive profits, whereby in the case where it achieves a revenue above a defined level, as committed to in its bid, the Franchisee must pay back any profit above that to Scottish Ministers.