Oyster cards for ALL trains

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Rail companies serving London have caved in to commuter demand and agreed to install Oyster pay-as-you-go.

The move will mean cheaper fares for passengers travelling into and around London by rail, Tube, bus and the Docklands Light Railway.

In a major U-turn, the firms will accept Mayor Ken Livingstone's offer of £20 million - and spend millions more of their own money - to install the system.

Chairman of London Travel-Watch Brian Cooke said: "At last the rail operators have seen sense and recognised that Oyster PAYG is the smart way to go into the 21st century."

Gerry Doherty, general secretary of TSSA, the rail industry's second largest union, said: "This is good news for passengers. Oyster PAYG will mean easier and, in many instances, a cheaper way to travel. It will also simplify the complex ticket system."

Mr Livingstone had given the 10 rail companies serving London until today to decide whether to accept his offer to help install the complex card-reading system. They will work with Transport for London to have it in operation by January 2009.

Many of the rail operators, which make tens of millions of pounds profit a year, had been stalling over the system. A senior rail source said: "The companies have now realised they were on to a hiding for nothing by continuing to oppose Oyster and have decided to bite the bullet."

Their opposition was condemned by Mr Livingstone earlier this month, who said the lack of availability of PAYG meant Londoners were missing out on cheaper fares and easier journeys. The Association of Train Operating Companies, which represents the rail companies, said all London operators would be responding positively to the proposal.

The rail companies lose tens of millions of pounds a year to fare evaders and fear this could rise under PAYG. Ideally, a PAYG ticket requires a gated station system like the Tube. But costs would prove prohibitive across all stations. While 70 of the largest stations in London have automatic ticket gates, 260 do not. Where they were not available, standalone Oyster "touch-in, touchout" validators could be used.

Charles Horton, managing director for Southeastern, which serves the busiest commuter routes in Britain from Kent and south-east London, said: "The introduction of PAYG on London's rail network will provide passengers with a simpler, faster and more attractive ticketing system."

He said he could "see no reason" why it could not be installed by January 2009.

Chris Burchell, managing director for Southern - serving routes from the Sussex coast - said he did not believe the remaining issues with the system would prevent them introducing it. Oyster PAYG can already be used on some mainline services to the east and north of the capital.

* Thousands of London Underground workers started voting today on whether to take strike action in a row over pay. About 6,500 members of the RMT are being balloted.

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