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Topic: Fare Rises & No Extra Carriages? (Read 756 times)
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Lee
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From the London Evening Standard:Train commuters face 10% fare rise and no extra carriages
Commuters were warned today they face fare rises of up to 10 per cent with journeys at peak times being made in “cattle truck” conditions.
Transport union bosses issued the stark warning after Transport Secretary Philip Hammond signalled he may scrap the current system which links rail fares to inflation.
Mr Hammond suggested that the system may be ditched as a result of of the autumn spending review, in which government departments will have to find savings of up to 25 per cent.
Under the existing system, commuters using the busiest lines at peak times would face fare rises of six per cent in January next year if inflation stays at its current level. However, Mr Hammond failed to rule out even bigger increases if his budget is shredded in the review — experts say the cut could be as much as 33 per cent.
He said: “We are hoping we will be able to hold on to the formula but we need to wait for the spending settlement before I can say exactly what I have to do next year.”
Plans for 1,300 extra carriages to ease overcrowding are also set to be scaled back.
There was an immediate backlash from commuter groups, Labour and union bosses. Speaking from the RMT's annual meeting in Aberdeen, general secretary Bob Crow said: “It could not be clearer — the Government are planning to bleed rail passengers dry and attack essential modernisation programmes while ring-fencing the profits of the train operators.
“That's not sharing the pain. We could see fares jacked up by as much as 10 per cent while passengers are crammed into ancient carriages running on creaking track with huge safety risks the length and breadth of the country.”
Regulated fares include season tickets, peak-time tickets, full-fare single and returns in commuter areas and saver off-peak tickets on long-distance routes.
Jo deBank, of London TravelWatch, said: “We all know the economic situation, but pricing people off public transport and the railways is not the right answer. If fares go up any more than currently planned, some people will really struggle to get to work and go about their daily life.”
Shadow transport secretary Sadiq Khan, MP for Tooting, warned against “fleecing Londoners with soaring fares for cattle-truck style commuting”.
He added: “It's OK for Philip Hammond who does not use public transport but for the million of Londoners that do, a massive hike in the cost of train tickets will hit them hard. This is on top of the record increases the Mayor announced last January on our buses and the Tube.”
Piling pressure on Transport Minister Norman Baker, a Lib-Dem, he said that the Liberal Democrats had argued in their manifesto for rail fares to rise by the rate of inflation minus one per cent. A bigger increase would be “another broken promise”, Mr Khan added.
Department for Transport officials said that although Mr Hammond is driven to work in a government car he also uses public transport.
Transport for London officials confirmed that fare rises on buses and the Tube could be set at two per cent above inflation.
Last year Mayor Boris Johnson disregarded the fact that RPI was minus 1.4 per cent in July, and agreed a 3.9 per cent increase for the Tube and 12.7 per cent on the buses.
In an interview in the Financial Times, Mr Hammond also signalled his determination to press on with a high- speed rail network throughout Britain, highlighting the environmental benefits. “Domestic flying in the UK will become in time a thing of the past,” he said.
He has also backed the £16 billion Crossrail scheme for London, which has already begun. But with his budget facing a tight squeeze, possibly of up to £5 billion annually, there are concerns that the Crossrail will either not be completed on schedule by 2017 or that it will be scaled back.
But Mr Hammond said: “Transport infrastructure investment ... is a way in which the Government can support the private sector economic recovery.”
The failed part-privatisation of London Underground finally came to an end today after Tube bosses signed the deal to take over Tube Lines — the disgraced maintenance giant responsible for the Jubilee, Northern and Piccadilly lines.
It was similar to the Metronet fiasco three years ago when the Tube's largest private maintenance consortium collapsed with debts of £2 billion.
Metronet's 7,000 staff joined Transport for London and are now joined by 2,500 more from Tube Lines.
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Lee
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From the Guardian:National Express backs government's possible rail ticket price rise
National Express chief says DfT right to warn passengers that it may scrap a fares cap that limits price increases
National Express entered the debate over rail fares today by backing the government's consideration of ticket price rises as part of a drive to cut the annual £5bn state subsidy of the railways.
Dean Finch, chief executive of the firm, said the Department for Transport was right to warn passengers that it might scrap a fares cap that limits price increases to 1% above inflation. Yesterday, the transport secretary, Philip Hammond, drew an angry response from trade unions and green groups when he said the formula could be sacrificed in the autumn spending review.
"It is absolutely legitimate for anybody to look at, in terms of raising revenues," said Finch. "Everybody complains about rail fares being awful, but we have more than 1bn journeys on the railways every year. That tells you that in the overall scheme of things the railway is an effective form of travel and is an integral part of peoples' lives."
Finch spoke as Theresa Villiers, number two at the DfT, met train operating groups to discuss franchise reforms and how to increase revenues from the railways. In 2008/09, the government spent £5.2bn on the railways, according to the Office of Rail Regulation, with the farepayer contributing £6bn. By 2014 the farepayer is expected to account for 75% of industry funding, but franchise owners and Network Rail, the quasi-private owner of the rail system, are braced for an acceleration in that timescale.
Villiers, the transport minister, said: "I met with representatives from the rail industry this afternoon. This was a useful and constructive discussion about how the franchise system could be reformed to improve services for passengers and encourage private sector investment in the railways."
Network Rail has already been asked to find further efficiencies in its £30bn spending programme over the next five years, with Hammond warning that a £1bn electrification programme might be hit. Finch spoke as National Express published a first half trading update. The bus, rail and coach group said it was in talks with the DfT to extend its East Anglia and c2c franchises, in a marked thawing of its relationship with the department. Under the Labour government National Express was told it could not extend the contracts after handing back the £1.4bn east coast franchise. However, Hammond has indicated that National Express can carry on running the contracts for about one year, while his team thrashes out a new structure for rail franchising, including longer contracts with fewer specifications.
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Graham Ellis
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"It is absolutely legitimate for anybody to look at, in terms of raising revenues," said Finch. "Everybody complains about rail fares being awful, but we have more than 1bn journeys on the railways every year. That tells you that in the overall scheme of things the railway is an effective form of travel and is an integral part of peoples' lives." Yes .. but there are so many more journeys that could be made - and would be made if fares were lower. I was at Atworth Village Fete yesterday - with my role being to talk with people and find out where they feel we should be going in this area. And public transport fares came up ... with people saying "I drive to Bath because it's cheaper and more convenient to do so with a group". Yes - that one was a bus example, but that's Mr Finch's company again. Now the CLEVER thing to do - for Mr Finch, for the county, for the people who live here, is to provide fares that are not perceived as being awful - and raise your 1bn jourenys a year to 2bn. How? Well - there are some superb fares out there. Ironically with the folks I was talking to yesterday, the train has a "groupsave" but don't expect they would have found out about that too easily, and I don't know if the same thing's avialable on the buses. Cost per person should drop - surely - with 2bn customers. Fare system can be simplified and explained in such a way that it can be understood (and I mean simplified - not just changed and labeled as simplified this time!) and a few of the headline-grabbing sillies such of the 'thousand pound fare ' type can be cut back a modicum - I'm not suggesting, you'll note, dropping TransWilts fares except the stupid 50 pound single from Swindon to Salisbury on the 06:15.
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