§ 25. Mr. LEONARD LYLEasked the Minister of Transport if he will state the effect up to the present of the increased railway fares on the railway receipts.
§ 26. Mr. PURCHASEasked the Minister of Transport whether he has been able to form any opinion as to the effect on the railway passenger traffic of the Kingdom of the advance in the rates to 16⅔ over the pre-War figure.
§ The MINISTER of TRANSPORT (Sir Eric Geddes)The new ordinary passenger fares, which were increased by 16⅔per cent. on the then existing fares and the new rates for season tickets came into force on the 6th of August, and workmen's fares and goods rates on the 1st of September. The receipts from passenger traffic during August show a substantial increase over any previous month, but in view of the fact that the 765 increased fares were not in operation for the whole month, I feel it would be unwise to base any estimates on the financial results of railway working for that month. If the hon. Members will repeat their question in a fortnight, by which time I hope the September figures will be available, I will endeavour to furnish more definite replies.
§ Mr. W. THORNEIs the right hon. Gentleman aware that the jump in workmen's fares has made a difference of 8s. a week, and that there axe many families in my division which pay as much as 30s. weekly in train fares?
§ Sir E. GEDDESI am not aware of that.
§ Mr. THORNEI am.
§ Mr. HIGHAMAs the coal strike will affect net receipts and that may force workmen's fares up still more what is the right hon. Gentleman going to do about it.
§ Sir E. GEDDESThe loss of traffic due to the strike will necessarily decrease the gross receipts of the railways enormously, and it is not possible with the large fixed charges to suddenly reduce working expenses to the same extent. There must therefore be an increased adverse balance due to the loss of traffic.
§ Mr. HIGHAMHave the railway companies any direct interest at all in saving?
§ Sir E. GEDDESThe railway companies under the guarantee of 1914 have no direct interest in either receipts or expenditure. They are guaranteed their net receipts during the period of the War.
§ Mr. HIGHAMThey spend £300,000,000 of our money and have no direct interest in saving any of it?
§ Sir E. GEDDESIt is expended on the railways. The Government in 1914 guaranteed their net receipts and therefore they have no immediate concern in either receipts or expenditure.
§ Mr. HIGHAMWhat is going to be done to protect the taxpayers?
§ Mr. LAMBERTWhen is this wonderful system coming to an end?
§ Sir E. GEDDESThe wonderful system of guaranteeing net receipts? It will come to an end under the Ministry of 766 Transport Act in the middle of August next year, and that is considerably earlier than would have been the case if that Act had not shortened the period. So far as it is possible in the present unsatisfactory condition of things obtaining under this arrangement—and I have before stated, it is unsatisfactory—the Ministry of Transport and the Accounting Staff are doing their best to save expenditure.