Rising Cost of Transport

Marcus Jones Excerpts

Wednesday 9th January 2013 Commons Chamber

[Maria Eagle (Garston and Halewood) (Lab)]

I beg to move,

That this House believes the rising cost of transport is adding to the financial pressures facing many households; notes that the Government failed to honour its pledge to cap this month’s rail fare rises at 1 per cent above inflation, resulting in some fares rising by as much as 9.2 per cent; recognises that this was a direct consequence of the Government’s decision to give back to the private train operators the right to increase fares by up to an additional 5 per cent beyond the increase set by Ministers; further notes that bus fares increased on average by more than twice the rate of inflation in 2012; calls on the Government to ban train operators from increasing fares beyond strict limits and to rule out the proposed introduction of a new category of super peak ticket which would increase the burden on hard-pressed commuters; and further calls on Ministers to support transport authorities pursuing Quality Contracts to bring accountability to bus fares, instead of using Better Bus Area funding to penalise authorities seeking to get better value for money for these taxpayer-funded services.

I begin by thanking and paying tribute to my hon. Friend the Member for Barrow and Furness (John Woodcock), who has decided, because of a head injury, to step down from his duties on the Front Bench. He has been an excellent, hard-working colleague, full of ideas, and I thank him very much for all the work he has done in my team. I know that he will be back.

The cost of transport is rising; it is rising by more than the rate of inflation—by much more in many cases. That increase is being fuelled by an out-of-touch Government and Transport Ministers who just do not seem to understand the pain they are imposing on hard-working people. Returning to work after the new year, those who commute by rail found that the price of their tickets had increased by an average of 4.2%, and by as much as 9.2% on some routes. Over the past year, bus fares have increased by more than twice the rate of inflation and motorists have found that VAT at 20% wipes out any relief they have had from the deferral of increases in fuel duty. Yet most people are not seeing their wages go up by anything like as much as those increases, and for many their wages or salaries are stagnant or falling.

[Mr Marcus Jones (Nuneaton) (Con)]

Does the hon. Lady not acknowledge that if her party were still in government and fuel duty had been 13p a litre more than it is today under this Government, bus fares would have increased even more?

[Maria Eagle]

The hon. Gentleman knows that his Government have cut the bus service operators grant by 20%. As for any policies that a re-elected Labour Government may have carried out on fuel duty, it is just speculation to say that they would or would not have been cut or kept; it is completely speculative to suggest that there may not have been any changes in the intervening two years—

[Mr Jones]

Will the hon. Lady give way?

[Maria Eagle]

No, I think once is enough.

Together with the rising costs of housing, fuel and food, the rising cost of transport is adding to the cost-of-living crisis now making life much tougher for households across Britain. Yet Transport Ministers and the Government are so out of touch with the pressures that families are under that they are making it easier for private train companies and bus companies to hike fares and increase their profits—

--- Later in debate ---

[Maria Eagle]

If the hon. Gentleman allows me to answer the point put to me, I might consider giving way to him a little later.

Putting train companies before commuters is what this Government are doing; when times got tough, we acted to try to support commuters. In future, if we get the chance, we will restore the rule and put it into law so that passengers will always know that the cap on fare rises set by Ministers is the one they see at the ticket office.

As I have said before, I believe that the previous Labour Government should have been bolder in taking on the train companies and they should have done so sooner, but the important fact is that we acted when times got really tough. This Government are just clobbering commuters even more.

[Mr Jones]

Will the hon. Lady give way?

[Maria Eagle]

No. I wish to make a little progress.

I think I have answered the point made by the Minister of State. If he is trying to argue that paying for a car is saving money because he is not having to pay for commuter rail fares, that is extraordinary.

[Mr Jones]

rose—

[Maria Eagle]

No, I will not give way to the hon. Gentleman.

Buried in the innocuous-sounding Government paper “Rail Fares and Ticketing Review” is a plan to introduce a new category of ticket—the super-peak ticket. It proposes

“a ‘high-peak’ fare priced higher than the current Anytime day fare/a season ticket priced higher than the current season ticket.”

So a commuter who is already paying thousands of pounds for their season ticket faces this year being told that their very expensive purchase is not valid on every train, even if they have no choice about when they have to get to work, and most people do not have that choice. With a captive market, train companies will be allowed to hike fares even higher than they are now on services that suffer the most overcrowding and where there is already no guarantee of a seat. Only this Government would think that the answer to overcrowding on our trains is to price all but the richest off those services. The Defence Secretary gave away this Government’s view of the railways when he was Transport Secretary—“a rich man’s toy”, he called them.

When these tickets are introduced, an even nastier shock is awaiting commuters because the Government’s paper includes modelling on how much the cost of these new super-peak tickets could rise each year. Here is what the Government chose to include in their paper as apparently the favoured option:

“some fares (in the high peak) rising by an additional 7% annually (an additional 40% over the course of five years)”.

So there it is in black and white: new super-peak tickets introduced, with their cost then rising by 7% a year and 40% in just five years. We agree with the Transport Committee, which last week in its report, “Rail 2020”, urged the Government to

“rule out forms of demand management which would lead to even higher fares for commuters on peak time trains”.

The Secretary of State should take the opportunity of today’s debate to do just that, and I hope he will. If he does not, Labour will oppose any attempt to penalise commuters with new super-peak tickets.

The Government are not only hiking the cost of travelling by train but making it harder to buy the cheapest fare by supporting the campaign for the private train companies to close ticket offices or reduce their opening hours. The Government’s paper, “Rail Fares and Ticketing Review”, says:

“Ticket offices are the most expensive way of selling tickets…Train operators will be expected to reduce their costs and this is one important option they will want to consider…it may not be possible or appropriate for ticket office opening hours to continue at current levels.”

It may well be inconveniently expensive for the train companies to have to employ staff to sell tickets to their passengers, but it is one of the best ways for many customers to ensure that they purchase the cheapest ticket, not least when we have a ticketing system so complex that it can be very confusing. Surely decisions should be made on the basis of what is least expensive for passengers, not what is least expensive for train companies.

We know that Ministers do not plan on listening because we have seen leaked e-mails from the Department for Transport showing that plans to close ticket offices are already well advanced. This is what one official said in an e-mail to the Department’s press office advising it on what it could say on ticket office closures:

“We can’t say that the Government has no plans to close ticket offices because we have an application from London Midland where the minister has already decided to approve some ticket office closures (it’s just not been announced yet…and there will be more of those in the future.”

When I first read that out last year during Transport questions, the Minister, the hon. Member for Lewes, said that the official must have been mistaken as he had not approved any ticket office closures. Yet weeks later it was announced that the Minister had indeed approved London Midland’s plans to close some ticket offices and reduce the opening hours of others, despite the company’s abysmal performance in recent months which has caused such misery for passengers. What is even more revealing in the leaked e-mail is that it shows how the Government intend to pass the blame for those closures on to the train companies. This is what the official told the press office:

“your way of slipping in there that the initiative comes from the TOCs”—

the train operating companies—

“not us is very neat.”

So that is the Government’s plan for fares and ticketing: ticket prices rising by as much as 9% every year; more expensive new super-peak tickets which mean that season ticket holders will not even be able to get on every train without paying up to 40% more than other passengers over the next five years; and new freedoms for train companies to close ticket offices, making it harder for passengers to get the best deals. What a contrast with the ideas to make fares and ticketing fairer and simpler that we have heard as a result of listening to passengers during our policy review process.

Those ideas include a clear definition of peak and off-peak, to prevent passengers from facing massive extra charges on the train because it was not clear when peak time ended, and to prevent train operators stretching their peak time to stretch their profits at the expense of passengers. Another is a legal right to the cheapest ticket, so that passengers are offered the cheapest deal available, with rights to refunds if they find that they were mis-sold a more expensive ticket.

Another idea is a more flexible way for passengers to change travel plans so that if, through no fault of their own, they just miss a train and have an advance ticket, they can take the next train without incurring a massive new fare on board. Another is a right to a discount for a rail replacement bus service, because if your train, Mr Deputy Speaker, becomes a bus, which usually results in a longer journey, it should be treated in the same way as a service that is delayed for any other reason. Finally, it is suggested that there should be a cap on annual increases in station car parking charges, because it is increasingly clear that some train companies are squeezing yet more money out of hard-pressed commuters by whacking up parking charges when we should be making it easier for people to leave their car at the station and commute, because by doing so they are helping to cut congestion and helping the environment.

--- Later in debate ---

[Mr Marcus Jones (Nuneaton) (Con)]

The cost of rail and bus travel is extremely important to many of our constituents. The motion has great appeal, but having looked at the detail, it is quite empty and poses many questions but gives no solutions to the problems that it identifies.

We must acknowledge the squeeze on the incomes of railway passengers over the past five years or so. Incomes have been stable at best for many people and salary increases have been well below price inflation. We need to recognise that fares have increased above inflation for the past 10 years. We must consider whether we can keep going back to those hard-pressed taxpayers year after year with those increases. In the debate about how we structure our fares, we must balance that need against the cost to all taxpayers of subsidising our railways, looking at how we can improve the efficiency of our railways, and ensuring that we see proper investment in the rail network and substantive service improvements. Having read the motion, I am far from certain that it strikes that balance.

There is no acknowledgement of the £16 billion of investment that the Government are putting into our rail infrastructure. That includes projects such as the Nuneaton to Coventry rail upgrade and electrification, which will bring a huge benefit to my constituents, particularly to my many unemployed constituents who are seeking work and do not have their own transport. The motion does not take into account the huge rail electrification programme and the new train and rolling stock programme, which will reduce the running costs of our railways substantially in the long term, as my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) eloquently explained.

The motion makes no mention of the improvements that there have been for passengers, particularly on the west coast main line, which is now seeing an additional four Pendolino trains and 31 trains being lengthened. When I get on the train at Nuneaton on a Monday morning, although I have to walk further along the platform to get to standard class, I know that when I get there, there will at least be a seat for me because of the new carriages that have been inserted into the trains.

The motion also makes no mention of the £2.5 billion to £3.5 billion of efficiencies that were identified in the McNulty report. I hope that when the shadow Minister sums up, he will elaborate on whether his party supports making the savings identified by that report. After all, there is a cost to implementing the measures that his party is proposing.

I note that the Labour party again brings “flex” to the fore in the motion. Perhaps the Labour spokesman will explain why, as with so many other policies, his party pursued the “flex” policy until a few months before the general election and then changed the policy for only one year. He also needs to say why, if it is such an awful policy, his Labour colleagues in Wales are still using it. The motion calls on the Government to ban operators from increasing fares above a strict limit. That is a laudable aim, but the motion is silent on what that strict limit should be.

That brings me on to the cost of bus travel. We must again consider the cost of living and the squeeze on many people’s incomes. Many of the lowest-paid people in my constituency rely on buses to get to and from work. The Opposition have been rather opportunistic in the motion and seem to have added bus travel to it as an afterthought. The text about bus travel is even vaguer than the first part of the motion. Again, the motion does not acknowledge that fares increased by 35% between 1995 and 2010, which included 13 years of Labour Government. During that time, the average fare increases were well in excess of 2.5%—the same as over the past two years. However, over the past couple of years, the increases have been below the rate of inflation. I say to the Labour Front Benchers that, during the period of the Labour Government, the subsidy to bus operators increased by 127%, while fares also rose by a huge amount. That is not good value for money.

As I have pointed out, Labour’s record on bus travel was not good. We know that if it were in government, fuel would be 13p a litre more expensive and bus companies would be adding that cost to passengers’ fares, compounding the increases that we have seen over the past couple of years. I suspect that if that had been the case, we would not have seen the £4 million investment that Stagecoach has made in new buses in my constituency, which I welcomed several weeks ago.

We must take into account the pressures faced by all our constituents and limit fare increases, but we must also acknowledge the taxpayer contribution and ensure that our public transport is fit and efficient for the future.