LABOUR should abolish rail franchising in Scotland in light of the East Coast privatisation fiasco, the party's Scottish deputy leadership contender Katy Clark said yesterday.

Leftwinger Ms Clark, who is standing against Blairite Kezia Dugdale for the number-two position, said East Coast had "served Scottish users well" during its five years in the public sector.

She said: On my watch, Labour in Scotland will never sanction selling our assets when we can run them better for the benefit of people in Scotland."

"Under the Labour Party in Scotland I want to help lead, we will abolish franchising and ensure that the public sector is the provider for our railways, with every penny of profit from the Scottish passenger being reinvested in more services to our rural areas and helping cut fares."

Her comments come after SNP Scottish transport minister Keith Brown announced that Scotland-wide franchise Scotrail would be transferred next year to Abellio, a subsidiary of the Dutch state railway.