Flop ScotRail firm Abellio cashing in on secret contracts despite Scottish Government takeover

Flop ScotRail firm Abellio cashing in on secret contracts despite Scottish Government takeover #Flop #ScotRail #firm #Abellio #cashing #secret #contracts #Scottish #Government #takeover Welcome to TmZ Blog, here is the new story we have for you today: The private operator of Scotland’s railway is continuing to cash in on secret contracts to run the crippled rail network – despite the service being nationalised. Abellio was stripped of its £6billion ScotRail franchise in April amid mounting criticism about its poor performance. Yet the Dutch state-owned company is still making millions from taxpayers behind the scenes thanks to a series of deals for undisclosed amounts that will run for up to three years. The details were revealed in a Sunday Mail investigation into ScotRail, which is already in meltdown weeks after being taken into public ownership as a driver pay dispute resulted in hundreds of services being pulled from timetables. First Minister of Scotland Nicola Sturgeon unveils a specially branded train at Glasgow Queen Street Station as ScotRail transfers from Dutch firm Abellio into public ownership (Image: Robert Perry/PA Wire) Read More Related Articles Read More Related Articles Our probe into the crisis-hit Scottish Government run firm found: ● Abellio has signed four contracts understood to total millions of pounds to supply replacement buses, provide customer services, manage station tenancies and deliver payroll services. ● Almost 1000 trains were cancelled in a single week, mainly due to driver shortages. ● Government ministers have repeatedly refused to reveal the salaries of two senior ScotRail officials. ● ScotRail chief executive Chris Gibb continues to work as a director of a firm which consults for other transport companies. Opposition politicians have reacted with fury to our findings and accused the Scottish Government of allowing rail services to “descend into chaos”. Two months after nationalisation an astonishing 911 trains were cancelled between May 23 and 29, with 383 of them in a single day. Meanwhile, documents released through freedom of information legislation reveal Abellio – which was criticised over delays, high fares and plunging performance levels – is continuing to cash in. The rail network in Scotland has been heavily impacted by a driver pay dispute The documents show four contracts were signed with the company and, while the Scottish Government has refused to say how much they are worth, sources claim they run to millions of pounds. A deal to run a customer service phone line and provide payroll services is set to run until 2025. Further contracts for replacement bus and taxi services, as well as buses between Glasgow Central, Queen Street and Buchanan Street Bus Station, expire in 2023. A key criticism of hugely reduced timetables introduced last week in the face of a driver pay dispute has been that replacement buses have often not been in place. Services have been slashed because drivers are refusing to work overtime and not enough new staff were recruited and trained during the pandemic. Talks with the train drivers’ union Aslef are set to resume tomorrow. ScotRail chief executive Gibb and chief operating officer Joanne Maguire have refused to reveal their taxpayer-funded salaries despite repeated requests from the Sunday Mail. ScotRail chief executive Chris Gibb Read More Related Articles Read More Related Articles Gibb continues to work as a director for CLGR Limited – a private consultancy firm he set up after leaving Virgin Trains as chief operating officer in 2013 which has more than £200,000 in the bank, according to Companies House documents. Labour’s transport spokesman, Neil Bibby MSP, said: “ScotRail is back in public hands but the public aren’t getting the service they deserve. Government advisers are agitating for railway cuts and permanent reductions in timetables. “The recent spending review means massive real terms cuts to public services and public transport, yet Abellio is continuing to make money from ScotRail. “We need to know why and when these contracts were signed and how much they are worth to the Dutch state-owned company. “Meanwhile the Scottish Government say they believe in fair work, yet are clashing with rail unions on pay and on so much more. “They do not seem to realise that their chronic failure, and Abellio’s failure, to recruit drivers and staff heaped pressure on the pandemic workforce and left us in the position we now face. “ScotRail’s return to public ownership was meant to serve the public but they are being seriously short-changed as things stand.” Scottish Conservative transport spokesman, Graham Simpson MSP, said the nationalisation of ScotRail had already “descended into chaos” after just two months. He added: “With a heavily reduced timetable plus hundreds of additional cancellations on top, it has never been more difficult to travel by rail. “This is especially the case if you live in a town like Dunbar, where many local people who commute to Edinburgh are being left stranded. “Meanwhile, there has been no progress made on negotiations with Aslef and so the delays and disruption will only continue. “The SNP Government must get a grip on this situation and act now if rail services are to return to normal any time soon.” The ScotRail franchise was taken into public ownership on April 1 after years of criticism of Abellio’s stewardship. The firm is believed to have raked in up to £1billion in extra emergency subsidies over the course of the pandemic. But the public spending watchdog warned in December that ministers have wasted hundreds of millions attempting to step in and run private companies. Read More Related Articles Read More Related Articles Rail fares have rocketed by 3.8 per cent this year – the biggest increase in a decade – which will take the cost of a season ticket between Edinburgh and Glasgow to £4430. A ScotRail spokesman said: “The services provided by Abellio support key services for the continued operation of ScotRail, including rail replacement during times of disruption and engineering work, station tenancy and advertising, as well as customer service correspondence support and payroll services.” The spokesman also refused to reveal the salaries of Gibb and Maguire but said they would be published in the future. Responding to the number of cancellations, he added: “On May 29, of the 383 cancellations, 310 were as a result of a significant number of drivers declining to make themselves available for overtime or rest day working, following a dispute about pay. “That’s why we’ve now introduced our temporary timetable to provide greater certainty and reliability for customers.” Aslef last week rejected an improved pay offer of 4.2 per cent. David Simpson, ScotRail’s service delivery director, said: “We’re incredibly disappointed and frustrated that Aslef bosses have rejected this improved pay offer. It’s astonishing that they will not even put this offer to their members.” A Transport Scotland spokesman said: “We appreciate the impact the temporary timetable is having on services. “However, it is providing greater certainty to passengers and minimising unplanned cancellations.” Don’t miss the latest news from around Scotland and beyond – Sign up to our daily newsletter here . 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Flop ScotRail firm Abellio cashing in on secret contracts despite Scottish Government takeover

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