HL Deb 25 July 1977 vol 386 cc732-4

2.40 p.m.

The Earl of KINNOULL

My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.

The Question vas as follows:

To ask Her Majesty's Government why the policy of freezing of rail fares for the remainder of the year will not affect the declared intention by British Rail to double as from September the present fares charged to schoolchildren between 14 and 18 years.

Baroness STEDMAN

My Lords, these are both matters for the British Railways Board. It was a decision by the Board—and a very welcome one—not to make any further general increase in fares this year. It is also the Board's decision to keep to their planned withdrawal of the special concessionary half-rates scholars' season tickets at the end of this academic year.

The Earl of KINNOULL

My Lords, while thanking the noble Baroness for that reply, may I ask her whether she would agree that, of the tens of millions of pounds lost every year on the railways, there must be many hidden concessionary fares which are partly responsible? Would she not agree that it is somewhat heartless and insensitive to say to one group of travellers—that is, to child travellers—"Your fares will go up double in September while the rest of us enjoy a freeze until December"?

Baroness STEDMAN

My Lords, this decision has obviously proved unpopular with some parents, but it is the local authorities which have to pay for 90 per cent. of the tickets which are used by this age group of scholars. After allowing for the rate support grant, it would still cost local authorities between £300,000 and £400,000 a year. It was one of the submissions made to the Price Commission in the fares package. There were at the time no objections raised by the Price Commission. The British Railways Board think that this change will improve their finances by £1 million in a full year. It is a loss-making concession to a much greater extent than that made to students in full-time education, which really produces revenue for the railways.

Lord GAINFORD

My Lords, is there any possibility that this concession might be reinstituted if there is hardship to the persons who have been finding it advantageous?

Baroness STEDMAN

My Lords, that would be entirely a matter for the British Railways Board.

The Earl of KINNOULL

My Lords, would the noble Baroness agree that the Price Commission were consulted 12 months ago on this issue and that matters are very different now? Of all people, families are hit worst by inflation. Would she ask her right honourable friend to reconsider asking the railways either to stagger the increase or at least to delay it for three or four months?

Baroness STEDMAN

My Lords, the Government have no power to interfere with the British Railways Board in the judgments they make about the running of the railways. Neither, in the present financial position, can the Government offer any increase in subsidies in order to postpone this.