SCOTRAIL'S performance levels must improve or operator Abellio risks being stripped of the brand's franchise, the Scottish Transport Secretary has indicated.

Dutch-owned railway firm Abellio has recently been criticised following the introduction of a new timetable last month that led to a number of cancellations. 

The company was also issued a formal warning on Christmas Eve as a result of failing to meet agreed targets, which means ScotRail now has to submit a remedial plan outlining how it will address its problems within eight weeks.

The National:

Transport Secretary Michael Matheson (pictured above) today said the decision to issue the notice was necessary after a breach of the company's franchise agreement was identified on December 21.

READ MORE: ScotRail issues apology for poor performance

And Matheson added that if Abellio does not meet the stated aims outlined in the plan, it could lose the ScotRail franchise.

He said: "I very much regret the poor service that customers have experienced from ScotRail over recent months.

"There's absolutely no lack of determination on my part to make sure that ScotRail keep up to the standards that we expect of them as is set out within the contract.

"A remedial plan is not something which you would issue just on the basis of a whim of some individual problems on limited occasions – this is because there has been a series of problems over a period of time that I don't believe is acceptable."

The National:

He continued: "We need to see the detail of their plan in order to consider that. There will then be a period of time which allows them to take that forward in order to make sure it's delivering the agreed improvements that they've set out.

"Once that has been taken forward, we as a government will then be in a position to assess their performance and whether they're actually delivering on their plan.

"Should they fail to do that and meet those necessary standards, that could ultimately result in them losing the franchise and they are aware of the potential implications that it has for them if they fail to deliver."

READ MORE: Michael Matheson admits train fare increase 'unwelcome' amid poor performance

But Matheson added that although he thought performance levels at ScotRail were unacceptable, problems around infrastructure – the responsibility of Network Rail – proved a significant challenge and urged opposition parties to back calls from the SNP to devolve power over the body.

Scottish Labour has been campaigning for the railways to be renationalised and for the Scottish Government to end the Dutch firm's contract early.

The National:

The party's transport spokesman Colin Smyth (pictured above) said: "Months ago, in September, ScotRail's performance plummeted to a level which breached their franchise agreement.

READ MORE: 'I went to the rail protest in good faith. It was a Scottish Labour stunt'

"Instead of taking decisive action to demand improvements, the Cabinet secretary issued a waiver to ScotRail giving them a licence to continue to fail and, not surprisingly, performance got worse.

"Last month, I challenged the cabinet secretary to stop bailing out ScotRail and start standing up for passengers by at least issuing a remedial notice against ScotRail and demanding a clear remedial plan.

"Again, the cabinet secretary refused to take action and even told Parliament on December 18, and I quote: 'There are early signs of improvement.' In truth, performance was continuing to get worse."