HC Deb 15 May 1918 vol 106 cc394-7

I should like to say a few words about the restrictions which have been recently announced, and to which immediate effect is being given. It is quite clear that to attempt to interfere with the vast number of people who are using the railways is a problem which presents great difficulty, and is not to be undertaken very lightheartedly. There is an impression in some quarters that the restrictions which we are now imposing with respect to the use of season tickets are intended to secure a reduction of about 40 per cent. in the passenger train mile. Such is not the case. Far from it. It would be impossible that restrictions such as we have suggested should make it possible for the railway companies to reduce their mileage by 40 per cent. as the result of the number of people who will no longer ride because they are unable to get season tickets. It was in January, 1917, when the 50 per cent. increase on ordinary fares was established that the railway companies began to reduce their train mileage. There has been a constant decrease in train mileage since then, and it is only to secure a small part of the 40 per cent. that these additional restrictions are necessary. With respect to the restrictions, perhaps I had better deal first with the restrictions which are intended to apply to the whole of Great Britain. We are proposing to increase the price of season tickets by 10 per cent. on all season tickets issued for journeys within a 12 mile zone, and to add 20 per cent. to the price of all season tickets for journeys beyond that distance.

Sir C. HENRY

For London?

Sir A. STANLEY

This is for the whole of Great Britain. On all season tickets issued or reissued there will be an increase in price, according to distance, of either 10 per cent. or 20 per cent.

Mr. STEWART

Will that be on season tickets already issued, or about to be issued?

Sir A. STANLEY

When they are renewed, or if they are new season tickets. I would like to mention that this year the number of season tickets issued, compared with last year, have increased by more than 30 per cent. There are two reasons for that. One is that the difference in price between a season ticket and an ordinary ticket is so considerable that in very many instances, in a considerable number of instances, it pays people to buy a season ticket and to use it for only one journey a week, and by doing that it is cheaper for them to buy a season ticket than it would be for them to pay the ordinary fare. That is an impossible position for us to maintain. The average cost per mile, even after this increase has been made, is less than.4 of a penny per mile. In other words, season-ticket traffic on the railways will be carried, with this increase, at considerably less than 1½d. per mile compared with the 1½d. per mile which represents the cost for ordinary ticket journeys.

Mr. ROWLANDS

What is the basis of that calculation? How far?

Sir A. STANLEY

As nearly as you can calculate it. I agree it must be in the nature of an estimate. It is as close an estimate as one can make of the journeys made by these season ticket holders.

Mr. RAWLINSON

Is that on a seven days' week or on six days or three days?

Sir A. STANLEY

Five days. We can only base it upon the experience we have in dealing with the season ticket journeys. Quite apart from this considerable difference in the cost, there is another reason why the number of season tickets issued have so largely increased, and that is due to the fact that a considerable number of people, for whatever reasons—perhaps in some instances they have tried to avoid living in an area affected by possible air raids—there has been recently, in the last year, an unusual number of people who have gone to live in the country, and particularly short distances outside of London. They have placed on the railways a traffic which is beyond the facilities of the railways to carry. The increased charge, which applies to all season tickets, is not done with the object of reducing the number of people who will ride. If it does secure that result and a lesser number of people take out season tickets and stop riding on the railways so much the better. The particular reason for it is because season ticket traffic is being carried by the railway companies at a loss. The basis upon which season ticket charges have been made in the past must obviously have had some relation to the cost of carrying the traffic. To-day the costs of operating the railways are totally different from what they were four or five years ago. To give one item alone, the annual cost for increased wages due to bonuses, the 12½ per cent., or whatever the increase may be, is, roundly speaking, £47,000,000 a year. I need not remind hon. Members that the cost of material for repairs has enormously advanced. I would like to mention that the railway companies in establishing the basis for fixing the price for season tickets have made distinctions between journeys up to twelve miles and those for the longer distances. It has been the policy of the companies in the past to encourage people to locate at some distance from the terminus of the railway, and in order to do that they have encouraged them to take longer journeys upon the line. The basis for the long journey is much lower than that for the shorter distance. That is why in fixing the increase we have distinguished between the shorter journeys and longer ones. It is an attempt to bring more closely into relation the price for ordinary tickets as compared with the price for season tickets that we have made an increased charge of 10 per cent. in the one case and 20 per cent. in the other.

Mr. JOYNSON-HICKS

Does the right hon. Gentleman not think that in thus reversing the policy of the railway companies he will be doing exactly what they tried to prevent—he will be increasing congestion in the twelve-mile area instead of taking it outside the twelve-mile area, which was what the railway companies tried to do?

Sir A. STANLEY

In so far as the traffic in the twelve-mile area is concerned, we look upon that as traffic which must be carried by the railways, and I cannot believe that there will be very many places where people could go to and find new-residences within the twelve-mile area. It is a fairly congested area already. It applies only to London for the time being. I do not think that this little difference in price will make any specific difference. I would point out that this increased charge, in so far as a great number of season-ticket holders are concerned, does not represent an increased charge of more than £1 a year. On the other hand, the revenue that is to be derived will go, the whole of it, to the State, and will represent something more than £1,000,000 sterling per annum. I cannot believe that it can be successfully argued that the State should be called upon to carry a large volume of traffic such as is represented by the season-ticket holders at a loss to the State. It seems to me unfair that those who can well afford to pay this slight addition to the cost of their season tickets should not be called upon to do so, and that this additional burden should have to be carried by the taxpayers of the country. I take it that it is quite clear to hon. Members that this will net increase the revenue that goes to the railway companies. It will go to the State towards meeting any deficit, if there be any, in connection with the running of the railways under agreements which the State has entered into.

Mr. JOYNSON-HICKS

There is some difference of opinion as to whether the 10 per cent. and the 20 per cent. increases are to extend over the whole country or only in the district round London.

Sir C. HENRY

The right hon. Gentleman said it applies only to London for the time being.

Sir A. STANLEY

I am sorry if I gave that impression. That is quite wrong. I thought I had made it quite clear that this increase of 10 per cent. and of 20 per cent. will apply to the whole country. It applies to every season ticket issued hereafter, whether it is a new ticket or a ticket renewed.

Mr. T. DAVIES

Not only to tickets within and beyond a twelve-mile radius of London?

Sir A. STANLEY

It includes every season ticket that will be issued, either a new ticket or a renewal. These restrictions apply to the whole of Great Britain. There is an additional restriction applying to the whole of Great Britain.

Mr. RUNCIMAN

Will the right hon. Gentleman explain? He said the whole country, and now he uses the phrase Great Britain. Does he include Ireland?