HC Deb 04 November 1946 vol 428 cc1061-3
The Minister of Transport (Mr. Barnes)

In accordance with my announcement in this House on 29th May, 1 asked the permanent members of the Railway Rates Tribunal, acting as a Consultative Committee, to advise me as to the best method of adjusting the fares of the London Passenger Transport Board so that, for the year 1947, the balance of the Board's net revenue account would approximate to the fixed annual sum payable to the Board under the Railway Control Agreement. The report of the Committee has been published and copies are available in the Vote Office.

I have decided to adopt the Committee's recommendations, except in one respect to which I shall refer. Since the inquiry, an agreement has been made between the Board and certain sections of their staff which will result in an addition to expenditure of £1,000,000 (including arrears) in 1947 and about £500,000 in subsequent years. The additional revenue required in 1947 must, therefore, be increased from the £4¼ millions estimated by the Committee to £5¼ millions if no burden is to be thrown on the Exchequer. As the Committee's scale involves regrouping of stages, it could not, I am assured, be put into force in less than eight months, and the yield next year would fall short by more than £1½ million. I have, therefore, decided to amend the Committee's scale of ordinary fares in such a way that it can be brought into force quickly, will yield in 1947 the amount required, and will avoid certain practical difficulties inherent in the Committee's scale.

On road and rail services the existing 1½d. fare will be retained and the existing 2d. fares will be raised to 2½d. On the road services all existing fares over 2d. will be increased by 1d., none of these fares having been increased during the war. On the rail services, existing fares of 3d. and 4d. will be increased by 1d. Rail fares over 4d., which have been increased during the war, will remain at present amounts. I will circulate in the OFFICIAL REPORT a statement comparing the standard single ordinary fares now in force, those recommended by the Committee, and those which I am authorising. The revised fares will be brought into operation as early in January, 1947, as possible, and I will announce the date later.

Captain Crookshank

Is the right hon. Gentleman aware that the raising of the twopenny fare to 2½d. will be extremely inconvenient both to passengers and to conductors on the omnibuses? Would he not look again at that difficulty? Can he also assure us that the sum total of these changes will not make an appreciable difference in the cost of living of the workers in London?

Mr. Barnes

The problem of the 2½d. fare has been very carefully examined, and the alternative would have meant, possibly, rebooking to avoid the four-penny fare. The result would have been five stages, and would have been too onerous a task for the staff to have performed.

Mr. Ernest Davies

In reaching this very regrettable decision, has my right hon. Friend borne in mind the very heavy capital charges which the Board has to meet? Has he considered the possibility of a financial reconstruction of the Board, because if that takes place, would it not eliminate the necessity for an increase in the fares?

Mr. Barnes

I am afraid I cannot contemplate the capital reconstruction of the London Passenger Transport Board on a matter of adjusting fares. [HON. MEMBERS: "Why not?"] My hon. Friend should bear in mind that the Government have other proposals to deal with this problem, and possibly he will wait until these are before the House.

Lieut.-Commander Gurney Braithwaite

Is not the Minister aware that if this monopoly were subjected to some competition these things would not happen?

Mr. Barnes

I would remind the hon. and gallant Gentleman that a Conservative Government created this for the purpose of avoiding and replacing competition.

Mr. Braddock

In view of the short time given to the examination of the Consultative Committee's report, and to the doubts that have been expressed as to the accuracy of the estimates of expenditure and income, would the right hon. Gentleman consider postponing the implementation of this decision until such examination can be made?

Mr. Barnes

I would remind the hon. Gentleman that I invoked the machinery of the Consultative Committee purposely in order to have this matter thoroughly examined. Their inquiry was exhaustive. Important bodies like the London County Council and others had full opportunity to put their evidence. I have myself thoroughly examined the matter, and I see no purpose in delaying the decision.

Mr. Chamberlain

The Minister referred to additional charges of about £1,000,000.

STANDARD SINGLE ORDINARY FARES.
Distance. Present Scale. Scale recommended by Committee. Scale which will be authorised.
Road Stages. Rail Miles. Road and Rail. d. Road and Rail. d. Road and Rail. d.
1 ½ 1½ 1½ 1½
2 1 1½ 1½ 1½
3 1½ 2 2 2½
4 2 2 3 2½
5 2½ 3 4 4
6 3 3 4 4
7 3½ 4 5 5
8 4 4 5 5
Road. Rail.
9 4½ 5 6 6 6
10 5 5 6 6 6
11 5½ 6 7 7 7
12 6 6 7 7 7
13 6½ 7 8 8 8
14 7 7 8 8 8
etc. etc. etc. etc. etc. etc.