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Search forAnger at new train fare hike
Friday, November 21, 2008, 16:00
Mike Leece reacted yesterday to an announcement by the Association of Train Operating Companies, which said that fares on services in the South West will increase by up to seven per cent from January 2. The hikes are above inflation.
The association said the increased revenue will help pay for major investment "to improve the railways and deliver better value for taxpayers".
It said that would be in line with government policy to reduce subsidy to the railway by 40 per cent between 2006/07 and 2013/14.
First Great Western will increase regulated fares, such as long-distance and season tickets, by six per cent, while other fares will go up by an average of 6.6 per cent.
South West Train fares will go up by six and 7.2 per cent, and Virgin Train Fares will go up by six and seven per cent.
The increases were criticised yesterday by Mr Leece for being above inflation.
He said: "Obviously cost competitiveness for all businesses is challenging at the moment. Therefore, above-inflation increases in rail transport is disappointing at this time.
Anthony Smith, chief executive of customer watchdog Passenger Focus, agreed. He said: "No fare rises are welcome in the current economic climate.
"These rises hark back to a time of high inflation and spiralling energy costs."
But former chairman of Plymouth's chamber of commerce, Charles Howeson, who celebrated exactly a year in post as chairman of First Great Western yesterday, said: "The company is one of the premium franchises which, from January, will be repaying the Government £50 million.
"Everything that this company is earning in the region it is reinvesting."
Michael Roberts, chief executive of ATOC, said: "Since 1996, in real terms, overall rail fares have risen by just five per cent and standard class regulated fares are actually lower than they were in the year before privatisation."
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