09/01/2014 - Time to cut high Rail fares
- RAIL FARES RISE AGAIN BY 3.1% IN JANUARY
- THAT’S A 40% RISE SINCE 2008—SINCE THEN AVERAGE WAGES HAVE GONE UP ONLY 16%
- SINCE PRIVATISATION IN 1994 THE COST OF RUNNING THE RAILWAY HAS DOUBLED
- THIS INEFFICIENT PRIVATISATION WASTES £1BN PER YEAR
- MANY TRAIN COMPANIES ARE OWNED BY OVERSEAS PUBLIC RAIL COMPANIES YET WE PAY MORE FOR RAIL TRAVEL THAN MANY EUROPEANS
CUT THE COST OF RUNNING BRITAIN’S RAILWAYS BY MAKING TRAIN OPERATORS ‘NOT FOR PROFIT’ COMPANIES
HOW TO MAKE OUR TRAIN FARES CHEAPER…….
Philip Hammond, this Government’s first Secretary of State for Transport, said that the railways were turning into a “rich-man’s toy” - but it doesn’t have to be like this.
The money wasted each year on our railways would be sufficient to cut fares by around 20%—but to do this the structure of the railway would need to change with Train Operators being run on a ‘Not for Profit’ basis - this means that all of the profit from running trains would be reinvested in the railway, rather than some being siphoned off to pay shareholders and can be achieved without paying any compensation to the current operators.
One of the train companies, East Coast, is run at present by a publicly owned company after the previous two private companies could not afford to run the trains for the prices they had bid. East Coast has made an operating profit of about £200M every year —but despite this success East Coast is to be privatised again.
It costs millions of pounds to bid to operate a train company yet usually three or four companies submit a bid, demonstrating how much money they must make while operating the trains to recoup this money.
Soon, the Government intend to merge Southern and First Capital Connect and the super-companies will be bidding to operate the new super-franchise. The Labour Party believes that the new franchise should be a not for profit company, like the present East Coast line, to make the cost of travelling cheaper and the trains better.