Costs of Scottish Rail Privatisation

Costs of Scottish Rail Privatisation

5 January 2016

RMT Press Office:

Costs of Scottish Rail Privatisation stops passengers receiving 13% rail fare discount.

Scotrail passengers facing more fare rise misery as they return to work after the Festive break could have had a 13% discount on their rail fares if it was not for costly and complex policy of rail privatisation a new report has found.
 
The research carried out by the UKs biggest rail union, RMT, found that the total cost of tendering and bidding for the Scotrail franchise and Caledonian Sleeper Franchise was over £53million, the equivalent of a 13% one - off discount on rail fares.

The £53m is made of up of the costs of carrying out the tendering process incurred by the Scottish Government and also the costs incurred by the bidders for the two franchises.

The news will add insult to injury for passengers who are returning to work in the knowledge that their fares paid to the Dutch state operated Scotrail franchise, are already being siphoned off to subsidise fares and services in the Netherlands.

RMT General Secretary Mick Cash said:
“It is a scandalous reflection on the real costs of privatisation that passengers in Scotland could have had a 13% cut in fares, rather than today’s hike, if they hadn’t had to shoulder the massive costs of the Scotrail and Sleeper tendering.

“Privatisation is a double whammy for the travelling public, it hits them with higher fares while delivering a lousy service as companies like SERCO on the Caledonian Sleeper sweat their franchises for every penny in profit that they can extract.

“RMT’s fight for public ownership of a railway run in the public interest will step up a gear in 2016.”

Ends

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Tagged with: scotrail, caledonian sleeper, serco