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Richmond upon Thames Liberal Democrats:Covering the constituencies of Twickenham and Richmond Park |
Hunter and Baker quiz Clark on rail fares
January 28, 2009 4:56 PM
• [Jan 27]: Mark Hunter (Cheadle, Liberal Democrat): WHAT the average percentage change in the price of regulated rail fares has been since 1997.
Paul Clark (Parliamentary Under-Secretary, Department for Transport; Gillingham, Labour): A comprehensive fares index is published by the Office of Rail Regulation in the "National Rail Trends" yearbook, and is available on the ORR website. Until 2008, regulated fares were below accumulated inflation. The average increase in regulated fares on 2 January was 6 %.
Mark Hunter: I note the Minister's reluctance to put a specific figure on the increase. According to research that we have conducted, since 1977 regulated fares have increased by a staggering 43 % - way above inflation-while unregulated fares have increased by an even higher rate. As we know, just this month the Government allowed an inflation-busting 6 per cent. increase in regulated fares. Does the Minister not think it is about time the Government committed themselves to a freeze in regulated fares to help hard-pressed commuters and other rail travellers?
Paul Clark: That would obviously bring into question the funding required by train operating companies, thus involving another funding commitment. We must make a decision on the basis of the priorities. The hon. Gentleman referred to an "inflation-busting" increase, but that increase was linked to the RPI in July plus 1 %, which is the working cap that we have imposed on operating companies. At the end of the day, we must decide whether to continue to invest in high-speed equipment, new rolling stock and associated requirements to improve reliability, or to give subsidies to private companies.
. . • [Jan 27]: Norman Baker (Lewes, Liberal Democrat): DOES the Minister not understand how angered rail passengers are by an increase in fares that is way above inflation, at a time of deepening recession?
He seems to be a little complacent about that. Is not one of the reasons for the increase his Department's policy of extracting premiums from train companies to operate concessions, forcing an unfair ticket tax on passengers? When will he give a fair deal to passengers and remove the unfair ticket tax? How does forcing up rail fares help to tackle climate change?
Paul Clark (Parliamentary Under-Secretary, Department for Transport; Gillingham, Labour): No increase in prices, for whatever reason, is welcomed, and we recognise the clear pressures on train travellers. But, invariably, as some fares have reduced because of the capping system that we have put in place, some have gone up. If we were to introduce a freeze, we would then need to spend more public funds on those rail companies. That would be another subsidy taking money away from rolling stock improvements, increased main line electrification programmes and schemes such as the £8.8 billion west coast main line. We must recognise the requirements, and that there are only two places that the money can come from-the taxpayer or the fare payer. It is question of getting the balance right between the two.
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