Discussion:
Rail fares to increase by 3.4%
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Basil Jet
2017-12-05 15:48:12 UTC
Permalink
http://www.itv.com/news/2017-12-05/rail-fares-3-4-january/
Offramp
2017-12-05 16:46:52 UTC
Permalink
Good!
Anna Noyd-Dryver
2017-12-05 17:29:36 UTC
Permalink
Post by Basil Jet
http://www.itv.com/news/2017-12-05/rail-fares-3-4-january/
"The Government uses the previous July's Retail Prices Index measure of
inflation to determine increases in regulated fares, which was 3.6%. These
are around half of all tickets and include season tickets on most commuter
routes and some off-peak return tickets on long-distance journeys."

Rate of increase set by the Government not by the TOCs...

Meanwhile,

"The RMT described the fares announcement as "another kick in the teeth"
for passengers.
General secretary Mick Cash said: "For public sector workers and many
others in our communities who have had their pay and benefits capped or
frozen by this Government, these fare increases are another twist of the
economic knife.
"The private train companies are laughing all the way to the bank.""

Surely at least some of the increase is required to pay for the generous
pay increases the union keeps negotiating for its staff? ;)

Staff costs apparently make up around a quarter of every fare, whereas
profits make up 3%...


Anna Noyd-Dryver
Recliner
2017-12-06 02:09:35 UTC
Permalink
Post by Anna Noyd-Dryver
Post by Basil Jet
http://www.itv.com/news/2017-12-05/rail-fares-3-4-january/
"The Government uses the previous July's Retail Prices Index measure of
inflation to determine increases in regulated fares, which was 3.6%. These
are around half of all tickets and include season tickets on most commuter
routes and some off-peak return tickets on long-distance journeys."
Rate of increase set by the Government not by the TOCs...
Meanwhile,
"The RMT described the fares announcement as "another kick in the teeth"
for passengers.
General secretary Mick Cash said: "For public sector workers and many
others in our communities who have had their pay and benefits capped or
frozen by this Government, these fare increases are another twist of the
economic knife.
"The private train companies are laughing all the way to the bank.""
Surely at least some of the increase is required to pay for the generous
pay increases the union keeps negotiating for its staff? ;)
Staff costs apparently make up around a quarter of every fare, whereas
profits make up 3%...
<https://www.thetimes.co.uk/article/rail-unions-blamed-for-rising-fares-h990cmhv8?shareToken=b976e0154735f1fdbff828d931556dc9>

So the government will reduce fares growth to CPI if the unions agree that
their wages should also be linked to CPI, and not the higher RPI. So Mr
Cash now has the means to reduce fares growth for those hard-pressed
commuters he's so worried about. I'm sure he will be delighted to show he
means what he says and will duly reduce the RMT's wage demands to CPI…
Dudbridge Donkey
2017-12-06 11:10:48 UTC
Permalink
Post by Basil Jet
http://www.itv.com/news/2017-12-05/rail-fares-3-4-january/
"The Government uses the previous July's Retail Prices Index measure of
inflation to determine increases in regulated fares, which was 3.6%. These
are around half of all tickets and include season tickets on most commuter
routes and some off-peak return tickets on long-distance journeys."

Rate of increase set by the Government not by the TOCs...

Meanwhile,

"The RMT described the fares announcement as "another kick in the teeth"
for passengers.
General secretary Mick Cash said: "For public sector workers and many
others in our communities who have had their pay and benefits capped or
frozen by this Government, these fare increases are another twist of the
economic knife.
"The private train companies are laughing all the way to the bank.""

Surely at least some of the increase is required to pay for the generous
pay increases the union keeps negotiating for its staff? ;)

Staff costs apparently make up around a quarter of every fare, whereas
profits make up 3%...


Anna Noyd-Dryver



-------------------

Oh yes, its just the poor hard done by public sector workers! Come into the
private sector and see what its like!


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Roland Perry
2017-12-06 13:10:12 UTC
Permalink
Post by Anna Noyd-Dryver
"The private train companies are laughing all the way to the bank.""
Surely at least some of the increase is required to pay for the generous
pay increases the union keeps negotiating for its staff? ;)
Staff costs apparently make up around a quarter of every fare, whereas
profits make up 3%...
On a similar note, a labour spokesperson was banging on about energy
costs on the TV half an hour ago. British Gas makes 5% profit margin,
and only 10% is "operating costs" (the rest are corporation/green taxes,
Ofgem-regulated grid charges & raw materials) it seems unlikely that
nationalising them would make a great deal of difference to the price
the consumer pays.

Even if they managed to stay equally efficient, management-wise.
--
Roland Perry
Recliner
2017-12-06 09:50:48 UTC
Permalink
Post by Basil Jet
http://www.itv.com/news/2017-12-05/rail-fares-3-4-january/
And this is what happened under BR:
https://pbs.twimg.com/media/DQWcoQqWsAAsM_D?format=jpg&name=small

And that was a shrinking BR, that needed more passengers. Now we have a
growing, overcrowded railway.
Anna Noyd-Dryver
2017-12-06 13:28:45 UTC
Permalink
Post by Recliner
Post by Basil Jet
http://www.itv.com/news/2017-12-05/rail-fares-3-4-january/
https://pbs.twimg.com/media/DQWcoQqWsAAsM_D?format=jpg&name=small
1975 and 1980 were a bit harsh!
Post by Recliner
And that was a shrinking BR, that needed more passengers. Now we have a
growing, overcrowded railway.
Presumably BR needed more money more than they needed more passengers.

I recall an interview with Chris Green, then of VWC, following one of the
fare rises - apparently with every fare increase at the time, the passenger
numbers went down but not by as much as the revenue increase, resulting in
an increase in takings regardless.


Anna Noyd-Dryver
Basil Jet
2017-12-06 18:16:57 UTC
Permalink
Post by Anna Noyd-Dryver
Post by Recliner
Post by Basil Jet
http://www.itv.com/news/2017-12-05/rail-fares-3-4-january/
https://pbs.twimg.com/media/DQWcoQqWsAAsM_D?format=jpg&name=small
1975 and 1980 were a bit harsh!
First price rise after Labour came to power and after the Tories came to
power, respectively. No, I don't understand the significance of that.
Certes
2017-12-06 18:30:23 UTC
Permalink
Post by Basil Jet
Post by Anna Noyd-Dryver
1975 and 1980 were a bit harsh!
First price rise after Labour came to power and after the Tories came to
power, respectively. No, I don't understand the significance of that.
Possibly that parties of any colour which recently won feel free to make
unpopular choices which may be forgotten before the next election.
Basil Jet
2017-12-06 18:40:39 UTC
Permalink
Post by Certes
Post by Basil Jet
Post by Anna Noyd-Dryver
1975 and 1980 were a bit harsh!
First price rise after Labour came to power and after the Tories came
to power, respectively. No, I don't understand the significance of that.
Possibly that parties of any colour which recently won feel free to make
unpopular choices which may be forgotten before the next election.
That would also pertain to governments who had just won a second term.
Clive Page
2017-12-06 15:19:38 UTC
Permalink
Post by Basil Jet
http://www.itv.com/news/2017-12-05/rail-fares-3-4-january/
What everyone seems to have missed is that many fares also went up in the Summer, but the usual stealth method of redefining what peak-hour means so that a large number of trips that could previously been done on an off-peak ticket now require an anytime ticket. That's put up many fares on the Thameslink line up by 20 to 25%. Even if that only affects say 20% of passenger journeys, it means that the fares basket has increased in the last 12 months not by the nominal 3.4% but by more like 6%.

Of course the service reliability on the Thameslink route has been so outstanding that we deserve this increase. (sorry I can never find the emoji for sarcasm when I want it).
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Clive Page
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