William Bain
Main Page: William Bain (Labour - Glasgow North East)Department Debates - View all William Bain's debates with the Department for Transport
(14 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Hammond
My hon. Friend is, once again, absolutely right. The objective must be to have a railway that is responsive to the needs of its customers, generating viability by responding to those needs—in fact, a railway that does what businesses throughout the economy do if they are to be successful and sustainable.
Mr William Bain (Glasgow North East) (Lab)
I agree with the Secretary of State that a central issue for the financial viability of the railways is the Government’s future policy on fare increases. The coalition agreement commits the Government to fair increases in rail ticket costs. Will the Secretary of State confirm recent reports that he has proposed to the Treasury changing the formula on capped fares and season tickets for next year from the retail prices index plus 1% to as much as RPI plus 5%? Does he not understand how unfair and unreasonable a fares hike of up to 10% will be to millions of hard-pressed commuters across the country if he cannot give an assurance to the House that every penny in increased fare revenues will be reinvested in the new rolling stock and capital projects that our railway system so badly needs?
Mr Hammond
The hon. Gentleman got to the nub of the issue in his last sentence. The coalition agreement commits us to a policy of fair fares, and we are committed to ensuring that fares are fair for rail users. No decisions have been made as yet about future fare increases, but he correctly identifies that, as a result of the spending review precipitated by the fiscal crisis that we have inherited, there may have to be a trade-off between fares and continuing vital investment in our railway. I have said that it would be wrong to rule out, ahead of the spending review, any change to the fare policy.