CONTRIBUTORS rail technology magazine
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The news for passengers, however, was not so good with the cap on regulated rail fares to increase to three per cent above RPI for three years from 2012 to support investment in new rolling stock.
Average circulation for the period 1/1/09 – 31/12/09 is 8,370 per issue which is the largest audited circulation of any bi-monthly UK rail magazine as of 11/2/09
TT-COC-002610
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The government clearly recognizes the importance of infrastructure projects to the economy but not the importance of affordability. Unaffordable fares have the potential to hamper regional economic growth by restricting the mobility of the workforce and to damage the long-term popularity of the railways.
the no.1 commercial connection Oct/Nov 10
UK rail travel is already poor value for money with some of the
rtmjobs.com Neil Butcher
neilb@cognitivepublishing.com Commercial
Business Development Manager Roy C. Rowlands
royc@cognitivepublishing.com Circulation Manager Leanne Bennett
subscriptions@railtechnologymaga-
zine.com
Accounts/Finance Heidi Rowlands
heidir@cognitivepublishing.com Administration Manager Danny Leatham
daniell@cognitivepublishing.com Publisher Roy V. Rowlands
royv@cognitivepublishing.com
Keep fares fair T
he news for rail from the spending review was better than expected with
the Department for Transport sustaining a smaller cut to its budget than many other departments.
The settlement for rail included £14 billion of funding to Network Rail to support maintenance and investment, including major improvements to the East Coast Mainline, station upgrades at Birmingham New Street and network improvements in Yorkshire, around Manchester and the Barry to Cardiff corridor; funding to enable Crossrail to go ahead and to support £6 billion of capital expenditure by Transport for London to maintain and upgrade the London Underground network.
highest fares in Europe. Revenue from fares currently raises around half of the industry’s £12bn annual costs and the passengers’ share will continue to increase in the future.
So it’s imperative that the cost of operating and maintaining one of the most expensive rail networks in the developed world - up to 40% more expensive than railways elsewhere in Europe according to the Office of Rail Regulation
-.is reduced.
Network Rail has been tasked by the ORR to deliver 21 per cent efficiency savings over the current regulatory period to 2013-14 and Sir Roy McNulty’s review will examine the overall cost structure of all elements of the railway sector and identify options for improving value for money for passengers and the taxpayer.
Let’s hope the review comes up with some decent proposals for cutting the cost of running the railways whether it’s by shaking up Network Rail or by breaking it up, as former rail regulator Tom Winsor recently suggested.
Otherwise, with fares continuing to rise and passengers being priced off the train and into their cars, not to mention the hundreds of thousands of jobs about to be lost, falling demand could mean we end up with new rolling stock but no passengers.
After all, what is the point of a railway which is unaffordable?
rtm3
EDITOR’S COMMENT
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