§ Mr. Malcolm BruceTo ask the Secretary of State for Transport what is his estimate of the total annual revenue from United Kingdom domestic passenger rail fares in the last year for which statistics are available; if he will estimate the effects on revenue of a 25 per cent. reduction in fares; and if he will indicate the assumptions regarding the elasticity of demand in relation to price which he is using. [13326]
§ Mr. Watts"Transport Statistics Great Britain", 1996 edition, published by the Government statistical office, gives ticket receipts for all British Rail and franchised passenger rail services in 1995–96 as £2,379.4 million—at 1995–96 prices.
Elasticity of demand estimates are commercially confidential within the railway industry. Further, elasticity values are affected by many different factors and only hold for small real changes. It is therefore not possible to provide an accurate estimate of the effects on revenue of a 25 per cent. reduction in fares.