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Rail fare rises: bosses quizzed
Dick Murray26 Jan 2009
MPs are to hold a major inquiry into the soaring cost of rail fares amid mounting anger from passengers.
The influential transport select committee is to fast-track an inquiry to next week which will hold company bosses to account.
Rail chiefs will be questioned on why, despite the huge increases, they are cutting back on services, withdrawing some trains, shortening the length of others, axing staff and reducing opening hours at ticket offices.
A senior industry source said: “The bosses are going to have some very difficult explaining to do. They will have great difficulty in justifying the increases while continuing to reap in their massive profits.”
Rush-hour fares rose by an inflation-busting average of six per cent this month, with many increases in double figures, adding hundreds of pounds to the cost of season tickets.
Commuters in the South-East suffered the most with average rises of eight per cent. Off-peak fares rose by an average of 11 per cent with some reaching 15 per cent and the rail companies have already warned of more increases to come.
Stephen Joseph, executive director of pressure group Campaign for Better Transport, said fares are so high that passengers are being “priced off” trains.
Rail bosses know they have a captive market and can continue to charge the maximum under current legislation. The Government, under a previous Tory concession to help force through rail privatisation, allows the rail companies to increase rush-hour fares by one per cent above inflation.
The July rate is chosen — last year it was five per cent — to allow the industry time to prepare tickets, dispensing machines and literature. This year's rises have been particularly painful because inflation has now dropped to below one per cent.
First Group, parent company of First Capital Connect which runs Thameslink, recorded an operating profit of £48.3 million for the six months ending 30 September.
Southeastern's parent company had operating profits of £77.2 million for the year ending 28 June.
Stagecoach, owner of South West Trains, had operating profits of £31.7 million for the six months to 31 October. Norman Baker, Liberal Democrat transport spokesman, today revealed the escalating cost of annual season tickets for London commuters.
He said London to Ashford was up eight per cent to £3,736; Sevenoaks, up eight per cent to £2,484; Gillingham, 10.2 per cent to £2,740; Northampton, 6.8 per cent to £4,148; Oxford, six per cent to £4,125; Reading, six per cent to £3,257; Brighton six per cent to £3,476.
He also revealed that 62,000 trains were cancelled last year, adding: “Not only do we have the most expensive railway in Europe, but passengers in Britain are expected to put up with tens of thousands of cancelled trains every year.”
National Express East Anglia cancelled 6,850; Southern, which includes the Brighton line, 5,790; Southeastern 4,829; First Great Western 4,048; First Capital Connect 3,981 and South West Trains 3,848.
Reader views (25)
My monthly travel card is going up from £302 per month in 2009 to £362 in 2010.
Explain that one, the costs are actually crippling! Do you think that NX Express will sell me a standing ticket as I never get a seat yet I am paying £40 less than my monthly rent.
Why do we let them get away with this?
- Lucy, Chelmsford Essex, 10/12/2009 16:47
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Simon,
Have you been to Germany and travelled on the railways?
Railways in Germany are run to make a profit.
The long distance services (Fernverkehr), although still part of DB have to make a profit and have recently cut a significant number of services in order to do so.
Many of the regional services have been tendered and many of these are now operated by Private companies, all of which are there to make a profit. Many of these are subsidised by the Federal Lands i.e. Regional Government. This is very similar to the subsidy system over here although the franchises are much smaller, sometimes just one route.
In addition, don't hold German Railways to be the shining light of how a railway should be run. Their long distance services have had a poor time keeping record for the last few years. The latest problem being with the axles on their new High Speed Trains (ICE 3), which has meant that many of these services are being replaced by "Ersatzzuge" i.e. old locomotives and even older stock.
- Andrew, London, 10/12/2009 15:47
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Not before time!! For anyone wishing to experience value for money re: train services I suggest you spend a day or two on the trains in Germany. Quite frankly, I'm surprised we haven't had people out on the streets making their feelings clear about these shocking increases and cutbacks!!!
- Matt, London, 10/12/2009 15:47
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I am so angry at the heavy increases in fares I am so tempted to refuse to buy a ticket. I think we should all do the same, refuse to buy tickets and start a revolution!
- Natty, London, 10/12/2009 15:47
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The government are holding an enquiry to find why the rail companies are putting rail fares up in line with government provided rules and figures whilst the government reduces the railway subsidies.
I wonder what they will conclude, the need for another enquiry?
- Tom, Watford (UK), 10/12/2009 15:47
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Infrastructure and public transport especially has become a huge problem in this country.
- Georgie, Islington, London, 10/12/2009 15:47
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Good idea, Natty! Mass disobedience is quite justifiable in the circumstances.
- Helen, London, UK, 10/12/2009 15:47
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BROWNS BANANA REPUBLIC.
- Paul, bolton uk, 10/12/2009 15:47
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My train fare went up 40p per day - then I find Southeasten have cut down the train I get from 6 to 4 carriages, so I cant even get on its so packed
- Julie, London, 10/12/2009 15:47
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The question is how to make our anger felt. A national fares strike? Protest action? Write to our MPs? The problem is that railways are a public service and privatisation has failed. It is just that no politician has the guts to admit it nor the brains to propose how to put them back into public ownership without reinventing the execrated British Rail. They stepped in when the banking market failed. Well, now the rail "market" has failed. So what are you going to do!???
- Robert C, London UK, 10/12/2009 15:47
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It is so frustrating for people with no choice but to get trains to work, if there was a competitive market then people would have the choice and the train companies would act on this.....
The announcement when you leave the train, "thank you for using First Great Western" seems slightly ironic - I mean what choice do we have.......
- Alan, London, 10/12/2009 15:47
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I am appalled by the increase in fares and decrease in quality of service! Train services are terrible and thus far there have been only few days when they have run on time. The customer service at the counters is disgraceful with the agents acting as if they are doing a favour to the passengers. It is about time the train chiefs are held accountable.
- Pp, Apsley, Hertfordshire, 10/12/2009 15:47
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Matt has it totally right the Railway in Great Britain is a joke in comparison with Germany,unfortunately it is no joke to the long suffering commuters who are being screwed by the train operating companies and by the government which set the franchise terms so eagerly accepted by the companies when the going was good
- Brian, Barry Wales, 10/12/2009 15:47
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If we all decide not to use the train and boycott it for a while, what happens then? yes they will increase the fares because the muppets in charge will say they havent been able to raise enough revenue to pay for their inefficiency and substandard service oh and pay off their shareholders. We can't win!.
- Dc, London, 10/12/2009 15:47
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Isn't it about time this country took a leaf out of the German railway system, and STOPPED running it as a profit making exercise?
- Simon Caleb, London, England, 10/12/2009 15:47
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Why has the railroad system and the airports in these country become so bad the last ten years? Well I am sure the bungling Nu Labor guys have something to do with it...
- Jackie, Hampstead, London, 10/12/2009 15:47
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We deserve a renewed infrastructure.
- Peteo, Islington, London, 10/12/2009 15:47
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Tyhe solution is simple just re-nationalise it properly and fund the business.
- Chaz, Perth, Australia, 10/12/2009 15:47
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The increase in fares is ridiculous. Especially given the current climate. The trains are never on time, dirty, and the staff rude. Its about time something was done. As the majority of us do not have any alternative.
- Jk, Kent, 10/12/2009 15:47
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I have recently used the German railway system and it is clear that this country has neglected its system for decades and is now trying to catch up - at the passengers expense.
In Germany, I travelled on ultra-modern, clean and perfunctory trains at half the cost of the UK. I haven't had that experience here yet.
- Viola, London, UK, 10/12/2009 15:47
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I pay 260 (now 267) GBP a month to travel from Maidenhead to London. First Great Western has decreased the number of trains running during rush hour and has shortened the length of these trains. Last week, of the 5 working days, trains were delayed on 3 (Not small delays either - my usual train was 30 mins late on all 3 days).
I wouldn't mind these slight increases now and again if I felt that I was getting value for money, but at 13.50 a day for a return to work, I feel like FGW is making a mockery out of me.
FGW have also had the gall to send me a letter telling me that the 10% discount which I currently receive on my ticket, is being reduced to 7.5% in 2009 and will drop to 5% in 2010. Fair enough, their passenger charter only requires them to dole out a 5% discount and them doubling it to 10% last year was pretty decent of them - but how can they justify removing the discount when I honestly feel that the trains are just as bad as in 2007??
Also, in their sneaky way, instead of my ticket going up from 260 a month to 267 a month (with the 6% yearly increase)it will now go up to around 274 a month - a jump of almost 15 pounds a month or 180 a year.
Sneaky sneaky FGW.
Come on Government. When are you going to step in and start to help the average hard working man/woman? As someone without a mortgage, but with savings, I have been hit hard by this interest rate malarky. When are you going to step in and put a stop this rail fare rubbish?
- Liz, London, london, 10/12/2009 15:47
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Forget the Banks it is about time the government took control of the railways! Get rid of duplicated ,expensive 'managements' [actually people with little true railway knowledge]and restore pride in a national resource. Sadly the track record [ no pun intended] of the Dep for Transport is poor too and that Department should be re- organised . Britain seems to have the most expensive but worst Rail service in Europe
- Eamonn, London, 10/12/2009 15:47
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What an utter disgrace - yet another out of all proportion rip off fare increase. The Southeastern "service" has been worse since the increase than before - if that's possible! I actually complained about the fare increase last year. The Southeastern response was basically that the Government doesn't want the taxpayer to carry the burden of fare increases -correct me if I'm wrong, but who else is paying the exorbitent peak fares except people going to work, i.e. taxpayers!
- Helen, Kent, 10/12/2009 15:47
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In a time of financial hardship for most readers, these disproportionate rises for commuter rail travel are laughable. Close ticket offices, get more penalty fare staff, ticket machines so some discount travel can't be issued, have arrival times differing between ticket issue and the platform. All money in the bank, but the cost of rolling stock, the cost of Oyster roll-out... All made very clear before the franchises were tendered! Well at least the money will go back into the economy... unless the firms are based on the continent....whoops, sorry!
This is one joke where people have stopped laughing, smirking or even being able to give a wan smile. Ghandi had the right idea. Jedi is now a recognised religion, anyone out there able to declare a holy day where we may not use the iron horse?! All other religions welcome. I'm still not laughing BTW.
RE-TENDER!
- Ian, London SE, 10/12/2009 15:47
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The trouble is that as commuters, we are trapped and totally reliant on the trains to get to work to earn a living, and the railway companies know that, and there take advantage of us, and abuse us. It is totally out of order, and particularly more so in the current climate. SOMETHING HAS GOT TO BE DONE TO STOP THEM ABUSING THE COMMUTER!
- Anon, London, 10/12/2009 15:47
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