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We will work with all key stakeholders, including the trade unions, to ensure the most efficient and best value arrangement to deliver our key lifeline ferry services. An independent review analysing the existing governance structure is already underway and our consultants will be engaging with stakeholders shortly. The provisional outcomes of the review will be published around the end of the year when further engagement on potential options will take place.

Employee matters including the promotion of third-party financial products including salary advances for its staff remain the operational responsibility of Abellio ScotRail and therefore does not require permission as such from Transport Scotland.

Under the Emergency Measures Agreements (EMAs) in place, (a) Abellio ScotRail and (b) Serco Caledonian Sleepers Limited are not entitled to indemnification in the event of industrial action although the net difference between revenue and costs in any EMA period pass through to Scottish Ministers.

To the extent that industrial action increases the net cost to the Scottish Government it increases the need for further efficiencies and cost reductions given that funding, in the context of Covid, is severely constrained.

Transport Scotland officials have remained in close contact with operators throughout the pandemic. A meeting to specifically discuss the issue was held on 30 March 2021 with Pentland Ferries, 22 April with John O’Groats Ferries and 17 February with Serco NorthLink Ferries. Officials will remain closely engaged with operators as the work progresses.

Under current legislation, a public sector operator could bid to run rail services in Scotland in any future franchise competition.

The Scottish Government has, on a number of occasions, requested the further devolution of rail powers, which has been denied. This includes through our engagement with the UK Rail Review. Further devolution would enable us to consider the widest range of options possible for delivering rail services.

We were not consulted on the detailed proposals within the Williams-Shapps Plan prior to its publication, and we are currently seeking clarity from the UK Government in a range of areas.

In Scotland we are continuing to work under the interim Subsidy Control regime and provisions held within the EU-UK Trade and Cooperation Agreement. Draft legislation was laid in the UK Parliament on 30 June 2021. We will now take time to consider the draft legislation and reflect any new options that may be available for procurement of ferry services and/or impact on ferry fares policy.

The organisational structure for ScotRail Trains Limited is currently being reviewed however the vast majority of Abellio ScotRail staff will transfer over.

The resources referred to in the previous answer related to staffing resources within Transport Scotland.

Those officials who had been asked to respond to the challenges presented by the pandemic to our transport network and the impacts on Islands communities are now returning to normal duties, and has been made clear, a priority has been restarting the work taking forward identifying potential options for reducing fares on ferry services across the Pentland Firth.

The Prior Information Notice (PIN) referred to confirmed Ministers’ intention for Scotrail services to be delivered through a wholly owned company of the Scottish Ministers in terms of the Operator of Last Resort following expiry of the current ScotRail Franchise Agreement.

It is intended that Operator of Last Resort arrangements will provide a period of stability for passengers and staff while we assess the scale and pace of recovery from Covid 19 and future rail reform.

As the PIN was published on 31 March 2021, almost 2 months ahead of the UK Government’s delayed White Paper on Rail, there was considerable uncertainty around reform at the time. Accordingly, through the PIN, Ministers reserved the right to put OLR arrangements in place as appropriate, up to the maximum period of 10 years. It also indicated the envisaged direct award at that point was for a period of 3-5 years with any optional additional period(s) exercisable at the sole discretion of Ministers.

Although the White Paper has now been published, we are pressing the UK Government for further clarity on how their proposals, and timescales for implementation of future rail reform, will impact our aspirations for Scotland’s railways. This will help inform future decisions about the duration of the OLR arrangements, subject to the 10 year maximum referred to in the PIN.

Provision of services by a Scottish Government owned company, called ScotRail Trains Ltd, in line with our Operator of Last Resort duty will ensure the continuity of rail services in Scotland and also provide stability to staff, suppliers and passengers over this period.

Abellio ScotRail staff with their terms and conditions will transfer to the new entity.