RAIL passengers have been promised fare discounts to help fill empty seats, a roll-out of wi-fi across the ScotRail network within seven years and stricter regulations on train punctuality.

Announcing a long-awaited policy blueprint, which includes £5 billion of spending between 2014 and 2019, Transport Minister Keith Brown said he aimed to build on the increase in train use over the past decade which has seen 30% more passengers on ScotRail services since the passenger franchise was taken over by First Group in 2004.

However, opposition politicians said the prospect of inflation-busting fare increases on the most popular routes were still a real possibility.

Mr Brown said the next ScotRail franchise, starting in 2014, would last 10 years – a key demand made by business groups and MSPs on Holyrood's Infrastructure and Capital Investment Committee in order to ensure investment in improved passenger services and new rolling stock. However, there would be a "break clause" after five years that could be triggered if improvements were not made, he said.

Caledonian Sleeper services will be split off and run by a separate company under a 15-year franchise, with £100 million provided jointly by the UK and Scottish governments to improve the overnight trains.

Smart ticketing, which would allow passengers to catch connecting bus and ferry services using the same ticket, would be in place by 2024, while timetable integration with other modes of transport would also be improved.

Mr Brown said rail fares would be "attractive and affordable", with regulations to limit fare hikes expanded to include rural passengers as well as commuters. The next ScotRail franchise operator will be expected to use "innovative fare packages" to make better use of spare seating capacity on off-peak and lightly used services, he added.

Several aspects of the announcement were broadly welcomed by opposition politicians, business leaders and passenger groups. However, Richard Baker, Labour's spokesman for infrastructure and capital investment, said the plans represented "the end of a protracted climbdown", after proposals to terminate cross-border trains in Edinburgh, increase standing times, lengthen some journeys and consider closing stations had all been dropped.

The Confederation of British Industry (CBI) Scotland said the measures were sensible.

However, Mr Brown faced calls from the opposition to rule out fare increases on busy peak services beyond the current formula, which limits any cost increases to 1% above inflation.

Mr Baker said: "It is deeply concerning that the SNP Government has not provided clarity on rail fares. This must raise fears of further dramatic increases in peak fares for Scotland's hard-pressed families trying to get to work."

LibDem Jim Hume called on Mr Brown to confirm that inter-city fares would not be deregulated, saying this could allow the new franchise holder to "hit passengers with inflation busting fares increases".

The blueprint included a £60m fund to improve journey times and punctuality, with £30m for infrastructure improvements to boost rail freight deliveries.

A series of planned enhancements to routes between Aberdeen and Inverness and the Highland Main Line between Perth and Inverness will go ahead.

However, following the statement, RMT general secretary Bob Crow said: "This plan is a mess." He added that splitting the sleeper services on a 15-year franchise "will leave it wide open to asset-stripping, exploitation and potentially it could be run into the ground".