DOCUMENTS penned by the parent company of the Dutch firm who operate ScotRail boast the contract is used to make healthy profits on limited investment. THE firm responsible for *Scotlands crisis-hit rail *network have admitted our trains are run for the *benefit of commuters in *Holland.
Business documents penned by the parent company of the Dutch firm who operate ScotRail boast the contract is used to make healthy profits on limited investment.
The boss of Utrecht-based *Nederlandse Spoorwegen (NS), who own ScotRail operators Abellio, says passengers in the Netherlands must benefit from the firms work overseas.
Business documents penned by the parent company of the Dutch firm who operate ScotRail boast the contract is used to make healthy profits on limited investment.
The boss of Utrecht-based *Nederlandse Spoorwegen (NS), who own ScotRail operators Abellio, says passengers in the Netherlands must benefit from the firms work overseas.
Pic: PAScotland's rail network has been criticised
The claims are a bitter pill to swallow for Scotlands commuters who are *routinely hit with cancellations, long delays and cramped conditions.
Politicians have called for the Scottish Governments deal to be ripped up after August statistics revealed 24 out of 75 services were late more often than they were on time.
NS, who are the Dutch national train operator, made the statements in their 2015 annual report.
Their subsidiary Abellio were awarded the ScotRail franchise in 2014 and took over in April last year. Accounts filed at Companies House show the Dutch firm are raking in *£1million profit a month from the deal.
NS said in their report: Abellio helps make NS profitable.
They added: Furthermore, the capital invested is relatively limited while a return on investment is achieved of 18 per cent. The expectation is that this will remain the case in the future.
They revealed revenue from *passenger transport increased by around £700million to £3.7billion *primarily due to the start of the ScotRail franchise on April 1, 2015.
The report includes a comment from NS chief financial officer Engelhardt Robbe, who said: The passengers who use the train every day in the *Netherlands must benefit from our achievements abroad.
The firm added: Activities abroad have to contribute to the public interests in the Netherlands. Like other major European state railway *companies, we are preparing for *possible further *liberalisation of the market.
Commuters search for the end of the queue
Critics said the remarks increased pressure on the Scottish Government to cancel the Abellio contract and *condemned the claims in the NS report.
The Rail Maritime and Transport Unions Scottish organiser Gordon *Martin said: Abellio are taking *£1million a month profit out of the ScotRail franchise, which is an absolute disgrace. It appears this is getting *reinvested in the Dutch railways at the expense of the travelling public and the workforce here in Scotland.
Theyre putting in minimal *investment and taking out maximum profit. We always believed this and now we know it for a fact.
Its the economics of the * madhouse its despicable and absolutely *incredible.
He added: The Scottish Government have given the Scottish railways to a state-owned firm but unfortunately its the Dutch state, not the Scottish one. Its a spectacular own goal. Opposition parties have called on the Scottish *Government to cancel the agreement after a nightmare start.
And rather than being reinvested to improve services here, millions of pounds of profits from passenger fares are going abroad to fund the railways in the Netherlands. The current set-up cant possibly provide value for money for passengers in Scotland.
He added: We need a public transport system that puts passengers first and the case for a peoples ScotRail gets more compelling by the week.
It works for other countries like the Netherlands, France and Germany and there is no reason it cant work here.
Patrick Harvie
Scottish Green Party co-convener Patrick Harvie MSP said: It is ironic that we now have a public sector rail company from another country running our *railways. Performance figures have shown a network of services beset by delays and cancellations.
The most recent performance update from ScotRail, for the four weeks to *September 17, showed the service again failed to meet their performance target.
The figures also showed 25 out of 74 end-of-the-line stations had services which arrived late more often than they were on time.
The three worst performing stations Arbroath, Ardrossan Harbour and Glasgow High Street saw nine out of 10 services arriving late. Transport *Minister Humza Yousaf confirmed in *Parliament last month the Government have written to the ScotRail Alliance demanding an action plan.
He said: Were committed to investing in Scotland and our railway. No money has been transferred to the Netherlands.
Under our stewardship, ScotRail have embarked on the biggest train *improvement and investment *programme in the history of Scotlands railway. This will mean more seats, shorter journeys, smart ticketing, improved wifi and better *stations.
We want to create a railway *everyone can be proud of and one that will enable Scotland to compete on the world stage.
ScotRail said performance statistics ranked them 10th out of 23 train *operating companies in the UK.
A spokeswoman said: We have agreed an action plan with Transport Scotland about how we pull this back up to the level we would expect.
SNSScotRail's Phil Verster (left) with Transport Minister Derek McKay
Phil Verster, managing director of the ScotRail Alliance, last week admitted passengers are weary of the train *companys poor performance.
A Transport Scotland spokeswoman said: The franchise agreement ensures Abellio are prevented from making *excessive profits because once they achieve a revenue above a defined level, as committed to in their bid, they must pay back 50 per cent of any profit above that to Scottish Ministers.
Abellio ScotRails reported profits are substantially less than previous *franchisee First ScotRail.
