Scotland's railways should be run on a not-for-profit basis, the SNP conference agreed yesterday.

It decided that when the franchise currently held by First Group comes up for renewal there should be a publicly-owned non-profit-making trust in a position to bid for and win the franchise.

Transport Minister Stewart Stevenson backed the resolution and said the railways belonged to the people, not a private firm.

The debate was led by Bill Wilson MSP, who said profit was a drain on public resources. He said: "Making a profit is an inbuilt disadvantage. It is money that goes out of the public sector into private pockets. However well a private company operates, profit is a drain on the public."

The minister supported the resolution and said the recent rebranding of ScotRail trains with a saltire and Scotland's Rail logos showed who really owned the network.

He said: "It is the public's railway. It is our country's railway, it is not First ScotRail's railway. In opposition we frequently said how bad things were. In government we have the power to make things better."

The current deal, which runs to 2014, includes a profits cap, which rules that over a certain level cash must be given back to the government to be reinvested in services.

The next six years is expected to provide £70m.

When an extension to the franchise was agreed earlier this year Mr Stevenson praised First ScotRail for its performance. He said at the time: "I am delighted to announce this agreement which brings significant benefits to passengers and delivers value for money for the taxpayer."