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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Session 6: 13 May 2021 to 8 April 2026
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Displaying 1760 contributions

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Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

I am not quite sure. The funding for Caledonian Sleeper and ScotRail comes to more than £800 million, which is a significant amount. You refer to the duties and responsibilities of the auditor. I am not an accountant and have not exercised audit functions, but the audit function would be the same regardless of whether the income from fares goes up, because the audit looks at the accounts, rather than at the absolute amounts from fares or elsewhere. I hope that I have understood your question correctly.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

The Scottish Government provides most of the funding, because the service is subsidised.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

I would prefer to get back to you about that.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

I am happy to do so.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

Good morning, and thank you for inviting me to attend to discuss the draft SSI.

Scottish Rail Holdings Ltd oversees the delivery of rail passenger services by its wholly owned subsidiaries ScotRail Trains Ltd and Caledonian Sleeper Ltd, on behalf of the Scottish ministers. The Scottish ministers are the sole shareholder of Scottish Rail Holdings Ltd, which was established as a company under the Companies Act 2006 and is classified by the Office for National Statistics as a central Government body.

In June 2022, an order was made under section 483 of the 2006 act to require the accounts of Scottish Rail Holdings to be audited by the Auditor General for Scotland. That engages the relevant provisions of part 2 of the Public Finance and Accountability (Scotland) Act 2000. Although ScotRail Trains Ltd is a subsidiary company and therefore part of the Scottish Rail Holdings Ltd group in terms of section 479A of the 2006 act, the order did not extend the requirement for the Auditor General to audit individual accounts. That was due to a lack of resource capacity on the part of the Auditor General at the time. That has subsequently been addressed.

I now seek the support of the committee to progress the draft order to enable the accounts for ScotRail Trains and Caledonian Sleeper to be audited by the Auditor General for Scotland. Currently, the audits for both subsidiaries are undertaken by an external auditor at significant cost, and the order will enable more efficient and effective audits to be undertaken at less cost to the taxpayer.

I am happy to answer any questions that members have.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

No, we will ensure that the Auditor General is recompensed for the duties that are carried out on behalf of the public.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

No.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

Lee Shedden might want to come in and explain the overall funding situation. The vast majority of the funding is public, which is why the company is audited as it is. There is scrutiny in line with the Companies Act 2006, but the relevant provisions of part 2 of the Public Finance and Accountability (Scotland) Act 2000 also come into play because, as you pointed out, the subsidiaries are publicly funded.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

Our transport system is heavily invested in and subsidised by the Scottish Government.

Net Zero, Energy and Transport Committee

Subordinate Legislation

Meeting date: 9 December 2025

Fiona Hyslop

I have nothing to add, convener. I am happy to take the committee’s guidance on this.