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Inflation link to rail fare rises 'must be ditched'
Dick Murray, Transport Editor2 Jan 2009
MINISTERS are today facing mounting pressure to scrap inflation-linked rail fare increases.
It came as train firms raised ticket prices by up to 11 per cent while reaping in tens of millions of pounds in profit.
More than 500,000 rail commuters will have to pay up to eight per cent more, adding hundreds of pounds to the cost of an annual season ticket.
Off-peak fares will increase by between seven and 11 per cent.
Many Tube, bus and Docklands Light Railway tickets will increase by an average of six per cent - though the "short-hop" £4 cash fare on the Tube is frozen.
Mayor Boris Johnson said he was being forced to increase fares "to tackle the unfunded legacy of Livingstone's largesse".
Mr Johnson has also implemented discounted and off-peak travel schemes to keep prices down. The increases signal the start of a triple whammy for many commuters - including hugely increased bills for domestic fuel supplies, and the credit card statements covering the Christmas period that will soon start dropping onto doormats.
Gerry Doherty, leader of transport union TSSA, led calls to halt the "gravy train" used by the rail operators to force up fares every year. He said: "This latest increase makes a mockery of the Government's claims to help hard-working families through the recession.
"As every other business in the land frantically cuts prices to attract customers we see the rail companies cheerfully ripping off passengers by increasing their prices as inflation falls towards zero in 2009." He added: "It is time for ministers to end this gravy train."
Mr Doherty is demanding transport secretary Geoff Hoon scrap the system where the rail companies use the July inflation rate - five per cent last year - on which to base their increases.
Ministers have allowed the companies to add one per cent on top of this for peak-time tickets, pushing the average cost up by six per cent.
The exception is Southeastern, the UK's busiest commuter firm, serving Kent and the South-East into Cannon Street, Charing Cross and Victoria, where peak-time tickets will cost an average eight per cent more. This is to pay for new high-speed commuter trains on the Channel Tunnel link, despite the fact that most of those having to pay will not want or be able to use the service.
Mr Doherty said: "The system of basing ticket increases on the July inflation rate and allowing the companies to add one or even three per cent more is past its sell-by date and must be scrapped."
The Government justified the system, by saying more of the cost of running the railways must be paid for by the passenger and not the taxpayer.
But Stephen Joseph, executive director of the pressure group Campaign for Better Transport, said fares are now so high that passengers are being "priced off" trains.
He said: "The Government's policy is to reduce its investment in the railway and make passengers pay more.
"It should invest more, regulate fares so they don't rise above inflation and make it easy for people to reduce their carbon footprint." Theresa Villiers, shadow transport secretary, accused Labour of allowing the rail companies to "get way" with massive fare rises.
She said: "With family budgets already under pressure from the economic downturn these increases will hit commuters hard.
"Labour is asking travellers to pay a big increase in fares for more and grossly overcrowded trains."
Anthony Smith, chief executive of the watchdog Passenger Focus, said: "Many passengers will shudder and shiver when they find out the scale of some new year fare rises.
"Fare rises that hark back to a time of high inflation and spiralling energy costs look very out of kilter.
"In addition, the perpetual tinkering with ticket restrictions ensure back-door fare rises continue.
"Yet again, many long-distance passengers will be pushed into paying higher prices or locking themselves into rigid advance-purchase, one-train-only fares."
Reader views (13)
"Public transport/services" should not habour the profit motive period!
- James, Leicester, 05/01/2009 00:31
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No matter whatever we the poor commuter says, the greed driven management will carry on regardless till it's too late. This type of overcharging may just be what is needed to push the economy over the edge. Brown and his cronies don't have a clue because they don't live in the real world.
Once I lose my job and join the dole queue I will have no need to buy a ticket!
- Harry, London, 04/01/2009 23:45
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People commute for two reasons.
1.In order to earn more than they can locally.
2.To have a better quality of living away from where they work (London).
Why should non-commuting tax payers subsidise commuters?
It's time to show how wasteful commuting is in time,money and the for the environment.
We must all campaign for local quality jobs so that we are not dependant on the roads and railways for our employment.
- Dwayne, Sunny Essex., 04/01/2009 22:06
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Of course, Boris needs to money now he is scrapping the West Zone of the Congestion Charge.
Typical Tory policy- make it cheaper for richer car owners in West London whilst making it more expensive for rail travellers!
At least Ken had his priorities right!
- Will, London, 02/01/2009 18:56
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These train companies don't have a leg to stand on - they are ripping us off big time.
The railway should be a state run, non profit public service. It is scandalous that they are allowed to raise prices so far above the rate of inflation - but i'm not surprised because we have a government who also fleece us blind. THIS CANNOT GO ON.
- Markburton, St Ives Cambs, 02/01/2009 18:46
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Bendy Buses efficient? Since when? They're a fare-dodgers paradise, overcrowded, uncomfortable and a hazard to other road users (just ask any London cabbie!). They may be okay for Northamptonshire, but not for London. Bendy buses were an experiment that didn't work out and a credible alternative needs to be put in place. Simple as that.
- Joannie, London, England, 02/01/2009 17:56
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There is something badly wrong with Government thinking, They cut VAT by 2.5% saying this will help kick start the economy, but just as one instance, they allow rail fares in my area to rise by 8%. You have the option to cut back on spending that attracts VAT, but you are hostage to rail fares, because you have to get to work otherwise you get the sack. If they cut VAT to zero, then you are talking. This all seems surreal. Is there any politician out there, who hates the sound of their own voice ? But will consider the voice of the people ?
- Bondy, london, 02/01/2009 17:44
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"Mayor Boris Johnson said he was being forced to increase fares "to tackle the unfunded legacy of Livingstone's largesse".
What utter rubbish Boris.
It is not you who is wasting an absolute fortune scrapping the efficient "Bendy-Buses" in order to replace them with your nostalgia driven desire to recreate the Routmaster Bus?
Is it not you who nastily removed free transport for Londoners on Benefits?
Was it not your beloved Conservative Party who under John Majors Premiership spawned the Inflation Busting Profiteering National Overground Train Operating Companies?
Is it not you who wishes to scrap the revenue raising London Congestion Charge resulting in a massive loss of valuable income?
I think you may well find the answers to these questions to be yes.
- James Thurston, Daventry, Northamptonshire, 02/01/2009 16:33
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Train fares are highest here in the UK, when will everyone wake up to the rip-off? And then they say look after the environment! Hypocrites, the lot.
- Ab, London, 02/01/2009 16:05
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Everyone into your cars then it will be cheaper with the cost of fuel decreasing.
- Terence Harrington, Canterybury, UK, 02/01/2009 13:29
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This type of greediness is going to end in everyone sitting at home and country going totally bust. I simply cannot comprehend the thinking of Ministers; we are facing economic meltdown but they treat the poor taxpayer as though he had a press printing money in his house
- Sheila, london uk, 02/01/2009 12:15
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Nationalize the railways the british public are fed up of being ripped with fare increases every year while these companies are making vast profits while delivering a poor service.
- Maggie, London, 02/01/2009 11:25
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Could someone define off-peak for me? All of this week South Central have been running a Saturday service and yet I've had to pay peak prices for the priviledge of travelling before 9:30, if they aren't going to provide a peak time service then what exactly am I paying for?
- Bob, Cheam, 02/01/2009 11:23
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