Cost of Public Transport

Iain Stewart Excerpts

Tuesday 19th January 2016 Commons Chamber

[Iain Stewart (Milton Keynes South) (Con)]

I, too, congratulate the hon. Member for Oldham West and Royton (Jim McMahon), and I wish him well for the securing of his Metrolink extensions. A wish that I expressed in my maiden speech came true, and I hope that he has similarly good fortune.

In the brief time that is available to me, I want to inject a degree of realism into the debate about rail fares. Let me say first that whoever owns the railways, there is a balance to be struck between what the passenger contributes and what is funded from general taxation. If, as the motion suggests, Labour Members want the passenger contribution to decrease, they must either say which taxes will be increased to pay for that, or spell out which part of current spending on the railways will be cut.

The vast majority of the income from the fares that are currently paid—more than three quarters—is spent on staff salaries, and I cannot imagine that Labour Members would want those to be cut. Some of the income is spent on maintaining and improving the track—we have the safest railways in Europe, and I cannot imagine that Labour Members want to compromise that—and some is spent on investment in new rolling stock, new stations, new lines and electrification. The profit margin is tiny: 3% of every pound that is spent. That funds innovation and development in the railways, which has doubled in the last 20 years. That is the reality of the railways today.

I had hoped that we could have a more sensible debate about the new technology and innovations on the railways, but time did not permit it. The philosophical debate about renationalising the railways has obliterated the time in which we could have talked about that issue, but it is what we should be talking about.

Finally, I want to knock on the head the myth that Britain has the highest rail fares in Europe. That is simply not the case. I invite Members to look at a wonderful website, The Man in Seat Sixty-One. The man in question compares the cost of rail journeys across Europe, and Members will find that in 85% of cases, United Kingdom rail fares are either the same as or cheaper than those on the continent.