Public subsidy for rail users must end

allticketsplease.com

The long-awaited McNulty value for money study of the rail industry has in my opinion fundamentally failed to put passengers’ needs at its centre.
Although the headlines for rail users appear to be fairness and tackling the complex fare structure, there are a lot of caveats buried in the detail of the report which could lead to a lower-quality, more expensive railway for passengers.

There is some good news, such as proposals for three-day season tickets that will provide benefits for part-time workers and also greater local control of the railways. The overall theme of the report is towards cutting the government’s subsidy and granting more flexibility to Train Operating Companies, while passengers’ needs – and a wider understanding of the social and environmental benefits of the railway are at serious risk of being sidelined.

Transport Minister Philip Hammond maintains that passengers will benefit eventually. But in reality, these rewards will happen beyond the life of the current government, and only if the rail industry as a whole rises to the challenge.  Meanwhile rail users are struggling with fare increases that far outstrip pay rises within the rail industry.

Media coverage seems to have focused on what will happen to off-peak fares.  Current fares are resulting in serious overcrowding just at the end of the rush hour period, when, unsurprisingly, regular rail users will wait to travel on a more affordable ticket. The McNulty report is proposing to change the current structure around the peak/off fares to make services less crowded by adjusting times and fares according to areas of heavy usage.  There are also fears being voiced that off-peak fares will be eroded by Train Operating Companies looking to make the most revenue from their services to cut subsidies from the Government.

Essentially, the majority of proposals regarding ticket prices boil down to avoiding costs associated with providing extra capacity, rather than making the option of rail more attractive to potential and existing users. There are also suggestions within the report that ticket prices could increase in areas where rail competes with other transport modes, which can only been seen as a backward step in encouraging more people to use rail as a greener mode of transport.

The other obvious concerns of the report include possible reduction of services on regional lines, the potential for frontline staff cuts meaning more unstaffed stations and the proposals to provide larger car parks which could create larger traffic problems around stations and risk turning passengers away, rather than encouraging more passengers and thus increasing revenue.people away from the train rather than increasing revenue.

Overall, the report leaves unanswered questions.  Namely, what are the railways for? Is the railway a public service, run for the benefit of passengers, Or are we moving towards a more commercial railway that suits the convenience of Train Operating Companies?

There is some good news as a result of the report.  Transport Minister Philip Hammond has committed to a fundamental review of fare structure. This needs to be structured to provide an easy to understand system that removes a lot of complex fares and is also fair to both commuters and occasional travellers alike.  The current fare structure is complicated to the point that even railway staff members cannot understand it and therefore cannot advise passengers properly.  The other opportunity of the fares review is that it gives the Government  a chance to ensure that the views, needs and importance of passengers are heard loud and clear.



Summary

  • above infaltion fare rises could stop
  • only 12% of population uses trains
  • cutting £1bn a year from costs by 2020
  • main cause of inefficiency was a system that divided responsibility between gov backed Network rail owning tracks and stattions and 17 franchises operating services under gov contracts.
Article

  • 5.2bn-a-year state subsidy for the "relatively small" and "better off" proportion of the population that use trains is unsustainable at current levels.  
  • Hammond said lower costs could be good news for passengers from 2014, the last of three successive years of steep fare rises. 
  • more 



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