Rail Fares

Debate between Rehman Chishti and Maria Eagle

Wednesday 5th September 2012 Commons Chamber

[Maria Eagle]

The hon. Gentleman is simply wrong about that. RPI plus 3% was cut last year to RPI plus 1%, but the year before it was RPI plus 3%, so what he says is simply inaccurate.

If anything, pressures on household budgets have increased in the past year. Families are finding it even harder to make ends meet, get through the month and pay all the bills. We are in a double-dip recession made in Downing street. More than 1 million young people remain out of work. Energy, food and fuel prices are all up, adding to the pressures facing our constituents. The rate of inflation—the RPI figure that will be used to calculate January’s fare rises—went up to 3.2% in July. With flex, the formula for January’s fare rises, as it stands, is 3.2% plus 3% plus 5%, which means fare rises of up to 11.2%. We should get rid of flex, but we should also—as the Chancellor said less than a year ago—set the cap at 1% above inflation.

I know that the Secretary of State has been appointed to change some of the policies pursued by his predecessor—at least that is what the newspapers say. However, I hope that on this issue he will agree with the right hon. Member for Putney (Justine Greening), who told the Financial Times last month:

“I am keen to see what we can do to keep fares down to something affordable. I will be looking at whether there is a way of doing this in the autumn.”

She added that

“she did not know if the Treasury would make funds available to do this,”

but said:

“If you don’t ask, you don’t get, so I’ll make sure to ask.”

If the Secretary of State has not already done so, I hope that he will be asking the Chancellor to agree to the lower cap on fares, because as his predecessor rightly said, “If you don’t ask, you don’t get.”

[Rehman Chishti (Gillingham and Rainham) (Con)]

Will the shadow Secretary of State clarify whether she accepts that her Government were wrong to impose RPI plus 3% on Southeastern, when the rest of the country had RPI plus 1%? That meant that from the Medway towns to London there was an increase of over 33%. Does she accept that that was wrong?

[Maria Eagle]

I am not sure that the hon. Gentleman listened to what I said earlier, but I have already said that I did not think it was right to tie such increases into specific improvements on specific lines, which is what happened in that case, and I have said that before. Perhaps if he listens a little more carefully, he will not have to intervene. I said that I did not think that was right, but the current Government—