ABELLIO has been warned it could lose the ScotRail contract if its train performance gets worse.

Transport Minister, Humza Yousaf, told MSPs that Transport Scotland would be ready and able to take over running the services if the franchise was terminated early when there is a break in the contract.

Mr Yousaf said there is an improvement plan, which he requested, and he is allowing Abellio the time to get it right, but warned he would take all necessary measures if required.

Mr Yousaf was giving evidence to the Rural Economy and Connectivity Committee at the Scottish Parliament.

ScotRail and performance of the new operator, Dutch government owned Abellio dominated the meeting.

Mr Yousaf reiterated his concerns and his position that the current performance was not acceptable and that he was aware of passengers concerns and frustrations at late trains cancellations and overcrowding...

He said: “ScotRail are feeling the heat on this issue.”

The improvement plan period runs until the end of 2016/17 and he expects targets to be met by then.

However Mr Yousaf said he will be assessing progress at the end of this calendar year and if he is not satisfied, discussions will take place.

He then warned of the ultimate consequences of failure to meet the required performance.

Mr Yousaf said: “Termination is an option we have. In fairness I don’t think it’s an option I will have to use.

“I’ve got confidence in the improvement plan. I have to give ScotRail the time and space to act on it.”

However, he added: “If performance worsens there are some very serious measures I can take and will take if necessary.”

He said Transport Scotland would be in a position to take over the operation of the contract if necessary.

A contingency plan was in place that would allow the franchise to be brought under Transport Scotland control

Mr Yousaf, said: “I can give confidence that our railways would continue to run if the contract was terminated early.

“I don’t see us going into that territory. We have that option as operator of last resort.”

He told the committee there was now a mechanism to allow a public sector bid for the ScotRail franchise that would be ready by the time there is a break in the contract in 2020 where either Abellio continues for the remainder or it is put up for a fresh bidding process.