SCOTRAIL was handed £23 million of taxpayers’ money early to shore up its finances despite concerns over its performance, it has emerged.
Bosses admitted to the payment after repeated questions from MSPs – but insisted it wouldn’t impact on the public purse.
It comes after it emerged the number of trains being cancelled across Scotland has risen to a new high, with the latest figures showing an average of around 70 services were scrapped every day.
ScotRail Alliance director Alex Hynes was asked about the early cash injection at Holyrood’s rural economy and connectivity committee.
He repeatedly tried to avoid answering the question, before admitting: “It's true to say that ScotRail has received some revenue support payments, which it is contractually due from April next year in advance of April next year.
"But that does not change the net amount of taxpayer subsidy to the franchise and it's worth saying that these commercial discussions happen all the time between ScotRail and the Scottish Government and those changes are just one of the changes we discuss at regular intervals with Transport Scotland officials."
ScotRail received £23 million from Transport Scotland as a result of its cash problems.
The payment was originally due to be handed over in April next year, but delays to electrification plans in the central belt meant it was brought forward.
Figures show ScotRail's pre-tax losses ballooned from £2.6 million in 2016 to £17.9m last year.
Mr Hynes only admitted to the latest move after repeated questions from Scottish Conservative MSP Jamie Greene and Liberal Democrat MSP Mike Rumbles. Tory MSP Edward Mountain, convener of the connectivity committee, also had to intervene to force an answer.
Scottish Labour’s transport spokesman Colin Smyth said: “This revelation reaffirms just how badly the ScotRail franchise is performing.
“It is not just failing passengers and railway workers – but it now seems taxpayers are being forced to bail out failure.
“The situation is now so bad it seems ScotRail bosses are demanding public money earlier and earlier, with the SNP government happy to reward plummeting performance. That is unacceptable.”
It came as Labour attempts to push for an early break in Dutch-owned Abellio's contract to run ScotRail failed.
Tory and SNP MSPs voted down the proposals, which aimed to allow a new public bidder to run the service from 2022.
Labour insisted hard-pressed passengers would be "disgusted to see the SNP and the Tories block Labour’s plans to end the privatisation of Scotland’s railways".
A ScotRail spokesman made clear “no extra money has been received”.
He said: “Payment has been brought forward and will be reduced over time in accordance with the original franchise agreement.”
A Scottish Government spokeswoman said: “Any notion ScotRail is receiving additional money is wrong - this commercial arrangement presents no additional costs to taxpayers other than those than contractually obliged.
“The re-phasing, less than 10% of the total due in year 5, is appropriate under the terms of this contract which is vital to the fabric of Scotland’s transport network.
"The re-phasing reflects the delays in revenue growth caused by the late delivery of Network Rail electrification, as well as the extended impact of the Queen Street tunnel closure period.”
ScotRail's performance has repeatedly come under fire in recent months.
Earlier this week, new figures put the number of services being cancelled at almost 4 per cent in the month to mid-October.
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