DfT has 'perverse' structure on rail fares

19th May 2009

The government has not fully considered the "damaging side effects" of taking control of the letting of rail franchises, according to a group of MPs.

A Commons public accounts committee report said that the impact of rising car park charges, fare structures and overcrowding have not been managed properly.

The report praised the department for protecting taxpayers' interests through its letting of rail franchises.

But the committee said it was "unacceptable" that internet access was required to get the cheapest rail fares

MPs described the Department for Transport's reliance on the internet for the cheapest fares as "perverse and unwarranted exclusion".

Committee chairman Edward Leigh stated that those without such access, or without time to search for the best travel options, are stuck "paying through the nose" for rail fares.

"Fare structures should be easy to understand and the cheapest fare for a journey should be publicised and readily available at station ticket offices," Leigh said.

"The department should hold train operators to their contract terms, even where the original bid might have included revenue assumptions which now look too rosy in the economic downturn.

"Revenues are likely to fall for the companies and the DfT should develop robust contingency plans to keep train services running if a number of train operators fail financially."

DfT took responsibility for passenger rail franchising from the Strategic Rail Authority in 2005.

Currently, the department has re-let eight franchises, all of which were completed within schedule and at good levels of competition, the report stated.

But the committee also recommended that DfT allows regional transport bodies to become more involved in selecting the bidder to operate services in their area.

And the report called on the department to hold train companies to their financial commitments.

In the event of financial failure by a train company, the department must ensure that its contingency plans are "robust" so that train services can continue running, the report added.

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