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I refer the member to questions S4W-28522 and S4W-28526 on 1 December 2015 and the answers provided. We are also working with stakeholders to identify further changes to legislation which will enhance partnership working and can form part of a consultation in 2016. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at: http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

Scottish Government officials are discussing options with members of the Bus Stakeholders Group for possible consultation during 2016.

Both the Cabinet Secretary for Infrastructure, Investment and Cities and I met with Nicola Shaw on 8 October 2015. During this meeting, and subject to associated financial arrangements, we pressed the case for the full devolution of Network Rail in Scotland with direct accountability to the Scottish Government and Scottish Parliament. In particular, our strongly held view that this would deliver benefits for rail users through tailored, localised decision making and relationships, among other things helping the ScotRail Alliance to fulfil its potential.

The Scottish Government continues to work closely with the Shaw review team to help inform their considerations. A response to the recent Shaw scoping report will be issued and published in due course.

The proposals announced by the UK Government only affect the way money flows through the rail industry rather than the actual funding being provided. The structure of charges does, however, remain a decision for the Office of Road and Rail (ORR).

As part of their review of charges for the period 2019-24, which is due to commence early in 2016, the Scottish Government will provide guidance to the ORR on the right structure for charges and incentives for Scotland’s railways. A key part of this guidance will be a clear expectation that consideration of any new arrangements should help increase transparency and clarity around costs and funding and better align incentives, including between Network Rail and ScotRail though the ScotRail Alliance and with all other passenger and freight operators in Scotland.

Legislation is due to be laid before Parliament in week beginning 8 December 2015. Good practice guidance has been developed with stakeholders and is in near final form. Both legislation and guidance will come into force on 31 January 2016.

In accordance with the requirements of the Railways Act 1993 the Scottish Government is responsible for producing a High Level Output Specification (HLOS) to set out what is to be achieved by railway activities in Scotland and the funding available to support this during the five-year control period set by the Office of Rail and Road (ORR).

The HLOS for the current regulatory control period (Control Period 5) was published in June 2012. It is then the responsibility of the ORR to establish the outputs that Network Rail is to deliver in Scotland and the funding that will be provided to support this. This was set out in the ORR's final determination in October 2013.

In Scotland Network Rail’s funding is largely provided by the Scottish Government by means of direct network grant or by track access charges subsidised through the ScotRail and Caledonian Sleeper franchise contracts. The balance between these two channels is set independently by the ORR.

New financing arrangements were put in place following Network Rail’s reclassification as a central government body in September 2014 with all borrowing now provided via a loan facility from the UK Government. As part of the arrangements agreed, a separate ring-fenced borrowing limit was set for Network Rail in Scotland which continues to be serviced by the Scottish Government. Alongside the core regulatory responsibilities of the ORR, the Scottish Government continues to monitor Network Rail’s financial performance to ensure delivery of the Control Period 5 programme against this limit.

Network Rail was reclassified as a UK central government body in September 2014. At that point, a Memorandum of Understanding (MOU) was put in place between the Scottish and UK Governments, which sets out how the Scottish Ministers will be involved in future decisions on Network Rail’s governance and financial management. In summary, the Scottish Ministers have a formal role on a range of matters such as Network Rail’s business planning and senior appointments.

Under the new arrangements, Network Rail’s Accounting Officer, usually the chief executive, will also be required to give evidence on their stewardship of public funds on the Scottish route, when summoned before a committee of the Scottish Parliament. A copy of the MOU can be accessed at: www.gov.uk/government/publications/network-rail-memorandum-of-understanding-between-scottish-ministers-and-dft

I refer the member to the answer to question S4W-28572 on 1 December 2015. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at: http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

As the independent industry regulator, the overall framework for railway charges is a matter for the Office of Rail and Road (ORR).The Scottish Government is the primary funder of Network Rail in Scotland and is actively considering the most effective approach to providing funding in future, including the balance between track access charges and grant funding. Refreshed Scottish Government guidance will be issued to the ORR on this matter as part of their upcoming review of access charges for the period 2019-24, which is due to commence early in 2016.

Network Rail’s funding requirements for activities in Scotland are determined independently by the Office of Rail in Road in accordance with the requirements and priorities set out by the Scottish Government.

For each financial year the funding provided to Network Rail and other railway funding is set out in Transport Scotland’s annual accounts, copies of which can be accessed from: http://www.transportscotland.gov.uk/topic-contents/84