Transport chiefs defend handling of rail services contract

Scotland’s transport chiefs are defending their actions against criticism over the way they have handled a major train services contract.

Last April, First ScotRail’s franchise was extended for three years, and when it was revealed that Guy Houston, the Transport Scotland finance chief, took part in meetings regarding the deal, he quit his post.

Malcolm Reed, the Transport Scotland chief, was told by MSPs that Houston had a “material interest” in the franchise extension. Houston quit after an auditor’s report was released, showing that he took part in the discussions.

Houston was a shareholder in First Group, although this had already been declared in Transport Scotland’s annual report.

Reed responded to tough questions at a meeting of the Scottish Parliament’s public audit committee, asserting that Houston participated at only a “very late stage” in the contract negotiating process.

Reed said to MSPs: “He attended two meetings after the deal had been struck. He played no part at all in either the shaping of the deal or the management of the deal.”

Houston had declared his shareholding in First Group after he took up his post in May of 2006, and at that time protocols were established to “manage” the situation.

Thanks to news.bbc.co.uk for the above quotes, for more information on this article please visit their website.

www.scotrail.co.uk