Transport Minister confirms Caledonian Sleeper to be taken into public ownership
The service will be operated by an arms-length company owned by the Scottish Government from June 25.
Last updated 2nd Mar 2023
The Caledonian Sleeper service will be brought into public hands this summer, the Scottish Government has announced.
Transport minister Jenny Gilruth said the service, which connects some of Scotland's most rural stations to London, will be operated by an arms-length company owned by the Scottish Government from June 25.
Speaking to MSPs on Thursday, Ms Gilruth said the decision to remove the contract from Serco should not be seen as commentary on the firm's operation of the service.
"The decision will provide a stable platform for the provision of sleeper services and it will also provide certainty for staff and, of course, the travelling public," she said.
"I would like to make it very clear that the Caledonian Sleeper staff will transfer to the Scottish Government-owned entity with their terms and conditions protected."
But Ms Gilruth intimated that the decision to bring the service into public hands would not be permanent, saying she and officials would monitor "market conditions".
Serco response
In response to the announcement, current operator Serco say they've brought "massive improvements" to the service despite having made "significant losses" on the contract.
Commenting on the decision, Managing Director of Serco’s Transport business, John Whitehurst, said: "We are disappointed that the Scottish Government did not ensure value for money by examining the possibility of a Direct Contract Award to Serco.
"Since Serco took over the management of the Caledonian Sleeper in 2015, we have brought about massive improvements to every aspect of the service for our employees, our passengers and for Scotland, despite having made significant losses on the contract.
“Today, the Caledonian Sleeper is one of the top performing train operators in the country.
“Unfortunately, the Scottish Government has not requested a costed proposal for a Direct Contract Award, which would have allowed Scotland to benefit from the expertise of our Serco Transport senior management team who understand this complex and unique hospitality-focussed train operation like no-one else, while also enabling Scottish Ministers to be in complete control of the contract.
"Most importantly, this would have allowed the Scottish Government to compare the price of such an award with that of their arm’s length Operator of Last Resort company."
Rail Union praise Scottish Government
However Rail Union RMT, who campaigner for the sleeper service to be brought into public ownership, have welcomed today's announcement.
RMT general secretary Mick Lynch said: "The Scottish government has done the right thing and now joins the Welsh government in bringing all passenger services into public ownership.
"We thank the sterling work done by Richard Leonard MSP and other Scottish politicians who have supported us in this successful campaign."