Fears Government rail review ‘could push fares up’

The Government is planning a shake-up of the fares system in response to a review of rail costs by former Civil Aviation Authority Chairman, Sir Roy McNulty.

His review team believes some fares are much lower than the market could, or should, bear. The review is also expected to recommend that on-train staffing and ticket offices should be cut, adding that UK rail staff wages are higher, and productivity lower, than some European countries.

The Labour Party, consumer groups and rail unions have expressed concerns that the planned shake-up will see train fares increasing. Prices for season ticket holders will already leap by 3 per cent above the RPI inflation rate in January 2012, and also increased this year.

But the Government says it is aiming for efficiency, not price hikes. The review will say that rail costs in Britain should be 20 to 30 per cent lower and also suggest that a rail delivery group should be set up to take over some of the functions of infrastructure company Network Rail, as well as more clarity over who is in charge of the railways.

Barriers to efficiency, the review says, include the fragmentation of the system – with train companies running services, Network Rail responsible for the track and stations, and extensive Government involvement.

Better deal

Transport Secretary Philip Hammond is set to outline the Government response in the House of Commons, and will try to convince passengers that the review will get them a better, rather than a worse, deal.

There will be questions about what cost-cutting on the railways might mean in practice for passengers. Campaign for Better Transport

A Department of Transport spokesman said the review “does not suggest raising fares more than is currently planned”.

He added: “We’re very clear that the whole purpose of the McNulty review over the medium term is to get a better deal for taxpayers and fare payers by reducing the cost of our railways. Getting the greater efficiency and higher productivity Sir Roy wants will have a downward impact on fares, not push them up.”

But the RMT union warned that “slashing rail funding will mean passengers pay higher fares for travelling on creaking, overcrowded trains on unsafe tracks”.

Passenger Focus said any changes to the structure of the railways had to focus on the passenger priorities of “an affordable, punctual and frequent” system.

The Campaign for Better Transport (CBT) said it was concerned there could be “even bigger increases in peak-time rail fares than are currently planned”.

The CBT went on: “There will also be questions about what cost-cutting on the railways might mean in practice for passengers, for example fewer staff at stations and less frequent trains.”