Railways: Fares

Lord Skelmersdale Excerpts

Tuesday 12th December 2017 Lords Chamber

[Baroness Sugg]

My Lords, VTEC has paid all its premiums in full to date, and we expect it to continue to do so as long as the contract continues. As with all recent franchise contracts, when entering into the east coast contract Stagecoach committed to inject additional funds into the business at its own expense, and we will hold it to that commitment in full. From 2020, there will be a new east coast partnership, one of the first of a new generation of integrated regional rail operations. That will include appropriate contributions from the private partner under a long-term competitively priced procured contract. I do not recognise the figures that the noble Lord uses.

[Lord Skelmersdale (Con)]

My Lords, can my noble friend explain to me why, in economic terms, the cost of travel appears to be inelastic, and we have seen many trains overcrowded in recent years?

[Baroness Sugg]

My Lords, passenger use of the rail network has doubled since privatisation, which is to be welcomed. As I said, the Government’s use of the RPI is consistent with general indexation on rail industry costs. We are trying to keep fares as low as practically possible, while maintaining the level of investment that our railways need to deal with the overcrowding my noble friend mentions.