§ 3.21 p.m.
Lord INGLEWOODMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper, and, in case it is not clear, the word " prices " refers, of course, to the price of tickets; that is, fares.
The Question was as follows:
To ask Her Majesty's Government whether the 26 per cent. average increase in prices referred to in notices displayed in London buses falls within the Government's guidelines for containing the cost of living to the consumer.
§ Baroness STEDMANYes, my Lords. In accordance with the counter-inflation legislation, London Transport notified the Price Commission in April last of its intention to increase bus fares by an average of 26 per cent. from the 20th June 1976. The Commission have considered the case, and they found no cause for intervention under the Price Code.
Lord INGLEWOODMy Lords, may we take it from the noble Baroness's reply that the further sentence on these notices, that:
This increase is to meet increased costs",applies right across the whole field of industry, in their view?
§ Baroness STEDMANMy Lords, I can answer only so far as London Transport is concerned. I would remind noble Lords that most London Transport bus fares were frozen between January 1972 and March 1975, and that in November 1974 it faced an anticipated deficit of some £52 million. The GLC were then forced to abandon their fare freeze, and they agreed on an average overall fare increase in the ordinary fares of 30 per cent. from the 23rd March 1975. Despite this, the deficit continued to rise, and further increases averaging 26 per cent. took effect from the 2nd November. Even with these increases, it was necessary 871 for the GLC and the Government to make grants totalling £93 million towards fares relief.
§ Lord SHINWELLMy Lords, is the noble Baroness correct in saying that London bus fares were frozen between 1972 and 1975? Is she aware that that is not my experience? I recall being asked to pay increased fares on several occasions.
§ Baroness STEDMANMy Lords, perhaps the noble Lord travelled outside London Transport areas, but my information is that the fares freeze was between January 1972 and March 1975, and that fares did not keep abreast of costs, which rose substantially.
§ Lord HAILSHAM of SAINT MARYLEBONEMy Lords, is not the noble Lord, Lord Shinwell, by reason of his years, which are even more advanced than my own, entitled to travel free on London Transport?
§ Lord SHINWELLMy Lords, is the noble Baroness aware, and also the noble and learned Lord, that I never take advantage of concessions?
§ Baroness LLEWELYN-DAVIES of HASTOEMy Lords, we shall remind my noble friend of that later.