THE state-owned company behind CalMac is working on plans to run Scotland’s trains.

The Scottish Government confirmed the firm was exploring a public sector bid to run the ScotRail franchise when it ends in 2025.

The franchise has been run by Dutch-owned company Abellio since 2015.

The confirmation comes just days after a report commissioned by Abellio described nationalising the rail service as “expensive, childish and counterproductive".

Written by former Labour transport minister Tom Harris, the report appeared designed to pre-empt and undermine the government announcement by characterising it as driven by misplaced dogma.

The SNP promised in its 2016 Holyrood manifesto it would “ensure that a public sector operator” was able to bid for the franchise.

Transport Secretary Michael Matheson said David MacBrayne Limited, which runs CalMac and Argyll ferries, had “confirmed its interest in exploring the possibility of a bid”.

He also said “any public sector body” that wished to consider bidding for a rail franchise contract let by the Scottish Government would be able to do so.

Public and private sector bids would get "equal treatment" in the franchise process.

David MacBrayne is one of the biggest logistics firms in Scotland, employing 1500 people.

The Scottish Government is its sole shareholder.

However the Scottish Greens questioned the SNP’s commitment to a public sector operator, pointing out that although the franchise could be terminated early in 2022, ministers planned to let it run to 2025.

That meant competition for the next franchise would not start until 2023, after the Holyrood election, when it could in theory start a year before it in 2020.

Green MSP John Finnie said: “A publicly run rail service, that’s set up in the interest of passengers rather than shareholder profits, won’t magically get up and running by itself.

“It needs the support of government and a determination from ministers to see that it’s in place by the original 2020 deadline.

“The Transport Secretary’s insistence that he’ll be ’giving equal treatment’ to franchise bidders from the private sector doesn’t inspire confidence that we’ll have a publicly-run, improved and expanded rail service in Scotland any time soon.”

Manuel Cortes, leader of the TSSA rail union, which had repeatedly criticised Abellio, welcomed the announcement.

He said: "Our union has always believed that Scotland’s taxpayers deserve the best rail service.

"Instead of wasting money on consultants to guide them through the franchise process a directly appointed public body could invest in more staff, better rolling stock and better toilets on the trains. The franchise process means passengers pay more and get less.

"It’s also disappointing that Mr Matheson has chosen not to use the break clause in Abellio’s contract. They’ve failed to meet their franchise obligations throughout their contract.

"If the public were getting this poor a service from their television provider, they would have switched months ago.

"Mr Matheson’s decision means Scotland’s passengers can look forward to another 7 years of rail misery.”

Mr Matheson said: “Our consistent view over many years is that there ought to be a level playing field between the private and public sector in bidding for rail franchises.

"Identifying a public sector body to make a bid has not been easy. It was vital to consider a range of scenarios as we want to strengthen competition and achieve best value for the public purse, while delivering continuous service improvements.

"It is important for any public sector bidder to have the appetite to bid; the capability and capacity to see the bid through; and the ability and resources to make the franchise a success."

A spokesman for David MacBrayne said: "The David MacBrayne group is an ambitious company looking to expand and grow, so we are open to new business opportunities which fit our purpose and where we can compete.

“The Scottish Government has indicated its desire that a public sector bid is included when the franchise goes out to tender, and we have indicated that we would be open to a discussion, when the time is right, on the shape of a future rail franchise contract and what this might entail.

"There have been no further discussions in this regard, and with the current ScotRail franchise due to be in place until 2025, we do not expect these to take place for some time.”