Committee
Rural Economy and Connectivity Committee 10 March 2021
10 Mar 2021 · S5 · Rural Economy and Connectivity Committee
Item of business
Transport (Update)
I do not have the specific figures on management fees in front of me; Bill Reeve might be able to provide you with that information. The management fee for the initial EMA was slightly higher than that which was set out in the second EMA, and the provisions in the third EMA are likely to be similar.
In the same item of business
The Convener (Edward Mountain)
Con
Good morning, everyone, and welcome to the Rural Economy and Connectivity Committee’s ninth meeting in 2021. I ask everyone to ensure that their phones are o...
Stewart Stevenson (Banffshire and Buchan Coast) (SNP)
SNP
I draw the committee’s attention to my entry in the register of members’ interests, which shows that I am honorary president of the Scottish Association of P...
The Convener
Con
Thank you, Mr Stevenson. I invite the cabinet secretary to make a brief opening statement.
The Cabinet Secretary for Transport, Infrastructure and Connectivity (Michael Matheson)
SNP
Good morning, committee. In the current session of Parliament, the Government has made significant progress across all areas of transport, and we have shown ...
The Convener
Con
Thank you, cabinet secretary. There are quite a lot of questions—I am sure that members will keep them short in order to allow you to answer in the same way....
Colin Smyth (South Scotland) (Lab)
Lab
Okay, convener—I was not going to do that, but I will. Good morning, cabinet secretary. As the convener said, I will kick off with a question on rail. The e...
Michael Matheson
SNP
Yes—we are taking forward work to put in place further EMAs for both the Caledonian sleeper and ScotRail franchises. We intend to take those EMAs to the end ...
Colin Smyth
Lab
You mentioned the estimated cost up to March this year. Last month, Transport Scotland eventually published figures that confirmed that, between March and Se...
Michael Matheson
SNP
I do not have the specific figures on management fees in front of me; Bill Reeve might be able to provide you with that information. The management fee for t...
Bill Reeve (Scottish Government)
Good morning. I am afraid that I do not have that figure to hand, but I will write to the committee with it. I can confirm what the cabinet secretary said: t...
Colin Smyth
Lab
Thank you for that. Turning to the future, cabinet secretary, what discussions have you had with the UK Government on the future provision of rail services, ...
Michael Matheson
SNP
Officials have engaged with colleagues at the Department for Transport, but there is no clarity as yet from the UK Government on the publication of its white...
Colin Smyth
Lab
It looks as though the new arrangements may not kick in before March 2022, when the current Abellio ScotRail franchise ends. What, specifically, do you inten...
Michael Matheson
SNP
The arrangements that we will put in place after March 2022 are, to some degree, subject to changes that may be afforded by the white paper. However, we are ...
Colin Smyth
Lab
Thank you, cabinet secretary. As you know, my preferred option would be that we have a public sector organisation running the franchise from March 2022. Are ...
Michael Matheson
SNP
As I said, I will, prior to the recess, set out exactly what approach we will take after March 2022. I believe not only that we should have a public sector-c...
Colin Smyth
Lab
The Scottish Government took the decision to break up the ScotRail franchise into two separate parts. Although we know that the Abellio franchise ends in 202...
Michael Matheson
SNP
I intend to set out the direction of travel for the ScotRail franchise after 2022; decisions on the Serco franchise will be determined more by what is set ou...
The Convener
Con
Before we move on, cabinet secretary, I would like you to clarify something. You said that there is additional extra money to the tune of £450 million. Can y...
Michael Matheson
SNP
No—I think you might be correct. I will ask Bill Reeve whether he has to hand the overall figure for the operation of rail services. The £452 million that I ...
The Convener
Con
I am sure that he has. Bill, can you confirm that?
Bill Reeve
You are exactly right, convener—the incremental figures take us up to between £1.3 billion and £1.4 billion. The cabinet secretary is also correct in saying ...
The Convener
Con
If passenger growth is in line with predictions, it will be fairly slow and incremental in the last part of this year as we come out of lockdown, so the reve...
Bill Reeve
During summer last year, revenues moved back towards the 30 per cent level, and they continued to increase until we started to move back into lockdown. I hav...
The Convener
Con
Time will tell.
Michael Matheson
SNP
Bill Reeve makes an important point. Some of the recovery that we saw last year was largely in leisure travel rather than in business travel. The uncertainty...
The Convener
Con
That is noted. The next questions are from John Finnie.
John Finnie (Highlands and Islands) (Green)
Green
Good morning, cabinet secretary and officials. Do you anticipate that there will be any further rounds of support for bus, tram and subway services? If so, w...
Michael Matheson
SNP
As I announced on Monday, we have provided additional funding of around £61.4 million in financial support for public bus operators. The purpose of that fund...
John Finnie
Green
Thank you for that. I appreciate that, looking ahead, there is a significant measure of uncertainty. I will stick with buses. In July last year, the Scottis...