Question reference: S5W-19002
- Asked by: Bill Bowman, MSP for North East Scotland, Scottish Conservative and Unionist Party
- Date lodged: 24 September 2018
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Current status: Answered by Michael Matheson on 25 October 2018
Question
To ask the Scottish Government, further to the answer to question S5W-18393 by Michael Matheson on 13 September 2018, should a public sector rail franchise result in a financial failure, what financial assistance it would offer, and whether this would be sourced through (a) reduced spending in other budget areas or (b) changes to its tax policy.
Answer
In accordance with procurement legislation, the Scottish Government's procurement processes require all bidders (public or private) to provide robust evidence of their financial capability to meet the specific requirements of any public services contract as part of the procurement process.
In some circumstances, the Scottish Government may offer financial assistance to a contractor provided that assistance meets the requirements of State aid and other legislation and is at commercial rates of interest. Typically, any such funding comes from existing budgets.