Rail Fares

Anne Main Excerpts

Wednesday 5th September 2012 Commons Chamber

[Maria Eagle]

My hon. Friend makes a strong point, even if his definition of Yorkshire is larger than everybody else’s. As somebody who was born in Bridlington, however, I understand that Yorkshire can be larger than one might think from looking at a map.

[Mrs Anne Main (St Albans) (Con)]

Does the hon. Lady not share my concern that under the previous Government, First Capital Connect, which runs the Bedford to St Pancras line, was obliged, because of its supported status, to claw back from the public? Imposing a cap now would put it in breach of its franchise. There were such obligations, entered into by the previous Government, on many of the franchises.

[Maria Eagle]

The hon. Lady makes a strong point. I agree that varying the fare cap on the basis of specific local investment promises in the rail network, which is what lies behind that issue, is not how we should set rail fares. Let us be clear, however: the Government are proposing a 3% above-inflation fare rise for the whole country, regardless of whether any additional investment is planned locally. Today’s motion, if supported across the House, would impose a clear national cap of 1% above inflation, so I hope that she will consider joining us in the Lobby to support it.

--- Later in debate ---

[Mr McLoughlin]

The hon. Gentleman must not underestimate the achievements of the last Government. He said that they electrified nine miles, but he is wrong; they electrified 13 miles, and I shall come to that a little later in my speech. I shall also come on to announce the electrification that we intend to carry out.

[Mrs Main]

I offer many congratulations to my right hon. Friend on his new and challenging post. Does he share my amazement that Labour Members ignore the fact that Thameslink 2000, which serves my constituency, was kept on the buffers for seven years while they dithered, thereby denying the infrastructure improvements of extended platforms and longer trains, which would have made a huge difference to commuters yet have gone ahead only recently?

--- Later in debate ---

[Mr McLoughlin]

More people are using the railways now than at any time since 1929, on a lesser network. However, the hon. Lady is right to express concern. I too am concerned about people who are having to spend such a large proportion of their income on transport. I hope that we shall be able to look at that, and that in due course we shall see improvements in some areas.

[Mrs Main]

Will my right hon. Friend give way?

[Mr McLoughlin]

For the last time.

[Mrs Main]

One thing that has not been mentioned so far is the cost of parking. Many people feel that the cost of their rail journeys has been rising in a reasonable fashion, in the sense that the increases are predictable, but the cost of car parking at railway stations has leapt, and the time for off-peak parking has been pushed back to as late as four or five o’clock. The fact that the cost of parking at stations has not been addressed constitutes a flaw in the debate.

[Mr McLoughlin]

I am told that that is a matter for the rail companies, but I understand the concern about car parking, which, I believe, can be extremely expensive in certain areas.

The hon. Member for Garston and Halewood has asked specifically for an opportunity to address the cap on regulated fares, and the way in which train operators use what are known as flex fares, which the motion describes as “that strict limit”. As I said earlier, I do not believe that the current fares structure—which we inherited—is perfect, and that is why we are conducting a fares and ticketing review. The key issue today is the “flex” policy, which was introduced by the last Labour Government. The cap on regulated fares is implemented by train operators as an average across a “basket” of different fares. That flexibility allows some fares to be increased by up to 5% more than the average, provided that other price increases are kept below the average. It means that operators can manage demand more effectively and efficiently, which should achieve better value for money for fare payers and taxpayers overall. It also allows operators to keep fares in a logical structure and to address anomalies over time.

Let me stress again that when operators increase some fares by the maximum permitted, other fares must increase by much less or even be held flat to comply with the regulated average. As I have said, the system was introduced by the last Government.