January Fares - Who's got what rises?

[whole diary]

[inspector_blakey]

price rises on public transport well above the rate of inflation

RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)) +1% for a 6% increase - debatable whether that's well above the rate of inflation. You'll note that the RAC are quoted as saying that motoring costs have risen 12% in the same time period.

Or knowing that you can get a flight to Scotland for approximately the same price as a train journey in peak hours
<snip>
Heres some more bile why on earth can't they open up first class carriages to the general smelly chavs like me who congregate in the vestibules
<snip>
Of course I'm no industry insider just someone fed up with being ripped off for a continually sh*t service that is rarely punctual, often cramped and has had no marked improvements in 5 years. Espeically when one uses public transport abroad.

Rip Off Britain

Nearly all of this comes down to HM Government's policy towards the railways over many years. They are expected to operate as a business and turn a profit. "Supply and demand" dictates that if a train operator can fill a train to Scotland with people paying full fares at peak times then they have no incentive to charge less. The existence of a parallel air service is immaterial in that calculation. Governments abroad, for example in much of continental Europe, take the view that the railways should operate as a public service rather than a business, and subsidize them accordingly such that income from fares actually covers only a fraction of operating costs. That said, despite the superb flagship high-speed services in countries like Germany and France, their commuter and rural trains are often grimy, clapped-out and unpunctual.

I don't know you so I can't comment in your personal hygeine, but the reason standard class ticket holders aren't allowed to use first class carriages at peak times is precisely because the people sitting in them have paid a large premium to travel in a quieter, more comfortable environment.

I'm not an industry insider either, but as a non-commuter I can take a more dispassionate view. Incidentally, without wishing to open up an additional can of worms, I assume you were well aware of commuting costs before you chose to live and work where you do...?

I wish you luck with your protest but suspect you'll have trouble convincing any TOC^▸ (Train Operating Company) to give you your own personal discount on any fares you buy to keep them at 2011 levels.

[ellendune]

I see the Swindon Paddington Fares are rising from ^109 to ^112 (2.8%) Anytime Return; from ^49 to ^51.10 (5.1%) Off Peak Return and from ^39 to ^41 super off peak(5.1%).

At least the exorbitant Anytime Fare is rising less than average.  

The 7 day Season is rising from ^200 to ^212 which is the full 6%. Season ticket holders will not like it but it is still only ^1.40 a day more than a super-off peak if you use it for 5 days.  

[Glovidge]

Heres Tim O'Toole's First Group's CEO^▸ (Chief Executive Officer) renumeration package:

last year's salary: ^591,000
housing allowance: ^138,000
bonus: ^760,000

this company has a number of near monopolies in local markets, delivers a rubbish service for rip off prices, pays its staff at the bottom crap wages  and they still tell us that the private sector are the best people to run essential public services?

Nice work if you can get it.

[inspector_blakey]

It's obviously difficult to say for sure, but I'd guess that if the public monopoly that was British Rail was still in existence then the man or woman at the top would be taking home a tidy sum as well.

Network Rail is essentially a public entity in all but name, and the executive directors (excluding David Higgins) took home between GBP365k and 546k in 2010/2011, down from between 564k and 915k in 2009/2010.*

And do you really think you'd feel differently about paying these fare rises if they were going to British Rail rather than First?

*_{Source is Network Rail Infrastructure Limited's annual report and accounts for 2011}

[Super Guard]

RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)) inflation was running at 5.6% in September, now down to 5.2%, so even if it was RPI on it's own, the rises would not be far off the current figures.

The old "salary" argument doesn't work, Tim O' Toole is ultimately responsible for several rail and bus contracts and of course business in the USA too.

Top dog at Lloyds TSB who's just returned from sick - potential ^10m a year remuneration package - and who owns Lloyds again?

Of course I will support FGW^▸ (First Great Western) in their business decisions, however no-one wants to pay more for anything, (i've had people moaning about paying 20p more on the Exmouth branch for a Groupsave 4 ticket).  I complain when petrol prices go up - am I driving off the forecourt in disgust?  Funnily enough no - although as inspector_blakey has already mentioned, I could save most of my fuel bill and live round the corner from the station.  I'd rather live out in the beautiful countryside, which costs me more in rent, council tax and heating oil as we cannot get mains gas - but it's my choice and i'm free to change career or housing location to suit my choice of lifestyle.  There are ways to reduce the miles I drive and I take them where possible.  Unless oil demand drops, the price won't come down, while trains are overcrowded and people pay the fares, then they won't come down either - supply and demand - business 101.

Also while there may be another "reason" for FGW fares not going above the 6%, surely if it's of "benefit" to the public, then it's a good thing regardless, and you don't all have to have your cynical hats on do you? 

[ChrisB]

One other reason the TOCs^▸ (Train Operating Company) won't reduce the rises to below inflation is that their biggest overheads - power for trains/access charges & staff costs were both in excess of that same 5.2% inflation marker this year.

And don't deny it, FGW^▸ (First Great Western) staffers, or I'll tell everyone how much you got :-)
Aggain, nice if you can get it....

[Rhydgaled]

If British Rail was still in existence then perhaps as you suggest the man or woman at the top would be taking home a tidy sum. However, there would only be one person at the very top level, as opposed to the top-level managers of many TOCs^▸ (Train Operating Company), Network Rail and the ROSCOs^» (Rolling Stock Owning Company - about). Simply having a leasing arangment for rolling stock rather than public monopoly (British Rail) owning all the rolling stock and infrastructure makes the railways a fair bit more expensive to run. Leasing costs are in the region of ^1bn per anum I think I read somewhere.

Donkey Guard, I appreicate that fares won't come down while pepole are willing to pay the fares. BUT, if the government are going to subsidise more poluting modes of transport, like the private car and aviation, then we will begin to see more pepole who are not willing to pay the high rail fares as the alternatives become cheaper relative to rail.

[Super Guard]

A pay deal which did not exceed inflation and keeps pay off the FGW^▸ (First Great Western) agenda until the end of the current franchise, safeguarding the Olympics too.

[ChrisB]

didn't exceed inflation? You're winding me up....

[Super Guard]

If British Rail was still in existence then perhaps as you suggest the man or woman at the top would be taking home a tidy sum. However, there would only be one person at the very top level, as opposed to the top-level managers of many TOCs^▸ (Train Operating Company), Network Rail and the ROSCOs^» (Rolling Stock Owning Company - about). Simply having a leasing arangment for rolling stock rather than public monopoly (British Rail) owning all the rolling stock and infrastructure makes the railways a fair bit more expensive to run. Leasing costs are in the region of ^1bn per anum I think I read somewhere.

Donkey Guard, I appreicate that fares won't come down while pepole are willing to pay the fares. BUT, if the government are going to subsidise more poluting modes of transport, like the private car and aviation, then we will begin to see more pepole who are not willing to pay the high rail fares as the alternatives become cheaper relative to rail.

Surely the Government has in effect subsidised the railway further by not implementing RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context))+3% ?

(It might have been the plan all along of course.)

[Super Guard]

didn't exceed inflation? You're winding me up....

Depends if you are looking at CPI or RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)) I guess.  RPI is a truer inflation picture in my book and it didn't exceed it.  The Government was criticised for moving state pensions rises from RPI to CPI.

[ChrisB]

RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)) + 0.5%?.....

[Rhydgaled]

While the government are subsidising rail, they are trying to reduce that subsidy using, in my opinion, the wrong means (above inflation fare rises). However, the issue I am disscusing here is that they are now giving a much larger subsidy to less sustainable modes than they are to rail (at least, motorists came off better from the autumn statment than rail passengers). If the price of rail tickets keeps on rising, then in my opinion it should be ensured that the cost of the less-sustainable alternatives rises at least as much. That now isn't happening, and money is still being ploughed into 'investment' in road schemes which cut the journey times for motorists while rail journey times remain static, and in many areas rail may thus fall behind the road journey time. Again, it is my opinion that the playing field needs leveling (or prefrablly biasing in favor of rail) with rail journey times being reduced to at least match any cuts to road journey times.

Rather than improve rail to match the improvments they are making to roads, it would be cheaper to improve neither. Then they could concontrate on clearing the nation's debt or pushing forward with a shift to renewable power and perhaps the new form of nuclear reactor which can deal with the waste from current nuclear power stations.

Besides, the government haven't canceled RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)) + 3% rises for 2013 and 2014, or have they?

[Super Guard]

Chris you have a PM.

It's just for 1 year the +3% has been cancelled, we could be in the same position in 12 months though, who knows.

[IndustryInsider]

That now isn't happening, and money is still being ploughed into 'investment' in road schemes which cut the journey times for motorists while rail journey times remain static, and in many areas rail may thus fall behind the road journey time.

Surely there's plenty of rail journey reduction schemes currently under construction, previously announced as funded, or given funding in the Autumn Statement, to go hand-in-hand with road related ones?