RAIL fare
increases will be capped at the rate of inflation under plans to
help hard-pressed passengers by ensuring the rail industry brings
down the cost of Britain’s railways.
A value-for-money study by Sir Roy McNulty concluded last year
that inefficiency across the railway industry is costing
farepayers and taxpayers £3.5 billion-a-year.
In her Reforming Our Railways: Putting the Customer
First Command Paper, Transport Secretary Justine Greening
today outlines how the industry will work collaboratively to
reduce this £3.5 billion efficiency gap by 2019 with the savings
going towards curbing fare increases while also investing in
rolling stock and better infrastructure, and lessening the
industry’s reliance on public subsidy.
Network Rail, with the help of the Office of the Rail Regulator,
is already on track to deliver a significant tranche of these
savings: at least £1.2 billion-a-year savings by 2014 and at least
£1.8 billion-a-year by 2019.
The Command Paper commits the government and industry to:
Reducing and then ending above-inflation rises in average
regulated fares as soon as possible;
Expanding smart ticketing technology so that passengers across
England and Wales can enjoy Oyster-style smartcard payment options
and more flexible season tickets;
Reforming rail franchises so that operators have to deliver more
value and better levels of service for passengers while ensuring
taxpayer subsidies are concentrated on safeguarding less
profitable routes that remain crucial to communities;
Investing in Britain’s capacity to grow jobs and prosperity by
funding thousands more carriages, extending electrification of the
rail network and redeveloping railway stations;
Strengthening the rail regulator’s capacity to improve the
passenger experience and oversee the crucial efficiency challenge;
Involving rail workers in our plans to get the industry on a
more sustainable footing, to grow jobs and to develop skills;
Empowering passengers by providing better punctuality and
real-time travel information.
Greening said:
“Inefficiency and waste in the railways is costing hard-pressed
farepayers and taxpayers £3.5bn-a-year and I will no longer allow
them to be lumbered with this unnecessary burden.
“We are setting out a roadmap for action alongside the industry
to root out inefficiency so we can deliver real value-for-money
that ends inflation-busting fare rises once and for all.
“Our Command Paper also safeguards community services, commits to
continued investment in rail infrastructure and rolling stock, and
empowers passengers through better ticketing systems and real-time information.
“It is about building a more efficient and affordable rail
network that serves its passengers better, encourages the rail
industry to thrive and grow, and ultimately reinvigorates and
sustains Britain’s economy.”
Greening has also welcomed Network Rail’s decision to unveil a
raft of commitments on improving transparency and accountability -
including appointing a public interest director to the Network
Rail board to represent the interests of taxpayers.
Network Rail is also granting company members a greater say in
board and remuneration decisions, and giving further
decision-making powers to its regional directors to make it more
responsive and operations-focused.
On Network Rail’s reforms, Greening said:
“Network Rail is really grasping the nettle in responding to the
challenges facing the rail industry. I welcome warmly Network
Rail’s decision to voluntarily appoint a public interest director
to its board and remuneration panel, other
governance-strengthening measures, and the steps it has announced
to improve performance and efficiency.”
Notes to Editors
1. Proposals in the Command Paper on fares and ticketing, and on
devolving rail decisions to sub-national bodies, are both being
put out to consultation today and are published as separate
documents alongside the Command Paper.
2. The Government is today publishing three documents:
Reforming Our Railways: Putting the Customer First (Command
Paper);
Rail Fares and Ticketing Review: Initial Consultation;
Rail Decentralisation: Devolving Decision-Making on Passenger
Rail Services in England.
All three are available to download at: www.dft.gov.uk/rail-reform
Contacts:
DfT Press Office - Rail
Phone: DfT Press Office 020 7944 3108
nds.dft@coi.gsi.gov.uk