To ask the Scottish Executive what powers the national transport agency will have to terminate the Scottish passenger franchise in the event of the franchise being unable to meet its financial commitments.
Currently the contractual aspects of the Scottish passenger rail franchise are administered by the Strategic Rail Authority (SRA) on behalf of and under direction from the Scottish ministers. The recent UK Government White Paper,
the Future of Rail, announced the intended abolition of the SRA and that the direct management of the franchise will in future fall to the Scottish ministers.
Under the terms of the contract, the franchisee's failure to meet financial commitments in three respects can lead ultimately to termination of the franchise:
1. by a failure to keep the ratio of revenue to costs at or above the contracted level;
2. by becoming insolvent, or by non-payment to SRA or Strathclyde Passenger Transport Executive of any sum owed to them, and
3. by breaching, to a material extent, any of the other provisions of the franchise which relate to financial elements of the agreement, for example, collection of fares at stations and on trains.
In the event of any of the above occurring, the SRA, acting under direction from the Scottish ministers, can either issue a termination notice and terminate the franchise, or require the franchisee to remedy the breach.