Union seeks inquiry as finance chief quits transport quango

Published on Friday 28 November 2008 20:04

UNION leaders yesterday called for an inquiry into the abrupt resignation of the finance boss of Scotland's transport quango.

Guy Houston quit as finance director of Transport Scotland as a report on how it is managing the First ScotRail franchise was published.

Mr Houston, who joined Transport Scotland in May 2006, held shares in First ScotRail's parent firm, FirstGroup. He attended meetings in March on the review of the franchise.

The train drivers' union, Aslef, demanded a halt to the franchise extension and a full inquiry by the Scottish Parliament, as well as an emergency statement from the Scottish transport minister, Stewart Stevenson.

The Audit Scotland report found First ScotRail had improved train services since taking them over four years ago. But it said the extension of the contract until 2014 could have been handled better – including the "governance" arrangements

"The director of finance and corporate services was present at key meetings in March at which the rail franchise extension was discussed," said the report.

"Good practice requires that members with an interest declare it in advance and take no part in any relevant agenda item.

"The minutes of the meetings do not record if the director of finance and corporate services declared an interest or removed himself from discussions.

"The register of interests and the management commentary in the accounts indicate Transport Scotland has put in place practices to address the potential conflict."

Des McNulty, Labour's transport spokesman, said the report showed an "unacceptable conflict of interest".

Transport Scotland issued a brief statement confirming Mr Houston had stepped down, but refused to comment further.