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Parliamentary column
RMT helpline 0800 376 3706 :: october 2014 :: RMTnews
9
Whatever your views on the question of
Scottish independence I believe that there
was a general hope that following the
referendum the people of Scotland would
have more say over many aspects of our lives.
Myself and a number of colleagues took the
view that one of the areas this could affect
would be rail where, under current
Westminster legislation, the Scottish
Government has to put the Scotrail franchise
out to tender.
Therefore, I had no hesitation in supporting a
statement initiated by the RMT and other rail
unions and also tabling a motion in
parliament which noted that as part of the
new devolution settlement there could be a
commitment to devolve responsibility on rail,
particularly given the commitment from the
Labour Party, Greens and SNP to support
this. This would give the Scottish
Government the power to decide whether it
wished to run ScotRail's services in the
public sector.
However, my motion in parliament and the
statement also expressed concern that under
the tendering process the winning bidder for
the ScotRail franchise was to be notified in
October 2014 and, since the franchise was
due to start in April 2015 for 10 years,
Scotland’s rail passenger services would be
privatised for the next decade. That is why
unions, MSPs and MPs called on the
Scottish Government to use its legal powers
to suspend the Scotrail franchise
procurement process until new rail powers
had been devolved and also to review the
decision to award the Caledonia Sleeper
franchise to SERCO.
There was absolutely no legal reason why
this could not be done and therefore it was a
travesty that the Scottish Government
decided to ignore the unions and proceed to
re-privatise Scotrail services for a decade.
And, ironically, they handed the contract to
Abellio, an arm of Dutch state railways, thus
taking the profits completely out of the
Scottish economy. Dutch public ownership of
Scotland’s railways.
There were a lot of red herrings put forward
by the Scottish Government to justify their
decision. Chief of these was the claim that
they would be liable to being sued for costs
by the bidders for the franchise and also the
claim that it was not clear that they would
receive new rail powers anyway.
But, as the RMT quite rightly pointed out, the
Scotrail tender documents contained a
clause giving Transport Scotland the right to
“vary, suspend or terminate the process in any
way” which would have protected the
government from being sued.. It is also worth
noting that bidder’s costs are typically in the
region of between £5m per bid. Compare that
to the fact in the last six years £110m has
been paid in dividends by Scotrail to
shareholders. This puts into perspective the
cost in the event of the remote chances of a
legal challenge to reclaim bid costs
succeeding and could be considered a price
worth paying in the circumstances.
As for whether the new rail powers would
have been forthcoming; it was already clear
under the devolution timetable that the new
legislation would be drafted early in 2015 so
the Scottish government could have simply
delayed making any final decision until the
New Year.
The Scottish Government also claimed that
the franchise they signed has a break clause
where after five years the franchise could be
reviewed but that review only allows for
whether the franchise should be limited to
seven or ten years in total. Indeed the
government used this clause in 2008 when
they were supposed to retender but simply
extended the Scotrail contract without any
consultation at that time
The Scottish government had an opportunity
to emerge from this whole episode as a
champion of public ownership of the railways
instead, as with the Westminster government,
it appears it was simply not in the ideological
make-up of the Scottish Government to be
able to consider anything else other than rail
privatisation.
It is to be hoped, however, that the outcry
over their handling of Scotrail will make the
Scottish Government think again about their
plans to tender lifeline Caledonian
MacBrayne ferry services.
The invitation to tender is due out over the
coming months and the Scottish Government
may seek to hide behind the claim that this
process is required by inflexible EU law. But
the Government will also know that there is
zero public support for privatising these
services and handing them to the likes of
SERCO. Therefore, it seems reasonable to
expect the Scottish Government to do all it
can to explore all legislative options to fight
to preserve public ownership of Scottish ferry
services and, as an absolute minimum,
enshrine cast iron protections for workers’
jobs, pensions and conditions in any future
contract for these vital services.
The fight against privatisation and neo-
liberalism continues.
Elaine Smith is the Labour MSP for
Coatbridge and Chryston and convenor of
the RMT Group of MSPs in the Scottish
Parliament
SCOTRAIL PRIVATISED BY SCOTTISH
GOVERNMENT -
IS CALEDONIAN MACBRAYNE NEXT?
T
he derailment of a freight
train at Camden Road last
year has been blamed on a
series of failures and
operational issues which had
all been raised repeatedly by
RMT, a damning report by the
Rail Accident Investigation
Board has confirmed.
The core issues in the report
includes the high turnover and
loss of experienced staff,
deteriorating condition of the
track, slippage on key
maintenance schedules and
poor knowledge of the
condition of the track.
Similar issues had been
raised by the RAIB in a recent
report into the derailment of a
freight train west of Gloucester
which also happened last
October.
RMT general secretary Mick
Cash said that the report must
be a wake up call to the
government and the Office of
Rail Regulation who continue
to demand cuts to maintenance
and staffing.
“This union refuses to be
ignored by those in charge any
longer and demand urgent
action to address all the issues
raised in both derailment
reports and that means an
immediate halt to the McNulty-
driven cuts,” he said.
RMT PREDICTED CAMDEN
ROAD DERAILMENT