Rail company's franchise extended

A deal has been reached to extend the current First ScotRail franchise for three years.

As part of the extension, more than £70m will be returned to the Scottish Government to be spent on new services and other improvements.

These include additional express services between Edinburgh and Glasgow.

The Scottish Trades Unions Congress said it was "hugely disappointing" that the announcement was made without prior consultation.

A £1m community fund is also to be created to encourage small businesses and communities to make the best use of empty station buildings.

Additional services

Additional early morning services will allow passengers from Dumfries, Gourock, Ayr, Kilmarnock, Dunblane, Perth and Kirkcaldy to connect to services arriving in London before noon.

The deal, which extends the company’s franchise to 2014, will also include improved rail services during the Commonwealth Games.

There will be a cap on profits, after which a percentage of revenues will be reinvested in services.

"The railways will improve even further", Mary Dickson, First ScotRail.

Under the projected performance levels for the remainder of the franchise term, that would see more than £70m returned to the government for reinvestment.

Announcing the deal, Transport Minister Stewart Stevenson said: "The extension is down to the success of First ScotRail in delivering levels of performance above and beyond those set out in the original franchise agreement."

Speaking on BBC Radio Scotland, First ScotRail’s managing director, Mary Dickson, said targets would continue to be raised as part of the agreement.

She added: "The railways will improve even further, but let’s not forget we’re currently at our best level of performance for the last eight years."

Passenger Focus has welcomed the deal, but the STUC said it was disappointed.

General secretary Grahame Smith said: "This makes a mockery of the SNP’s previous commitment to running Scotland’s railways on a notforprofit basis."