§ Martin LintonTo ask the Secretary of State for Transport if he will make a statement on the fares incentive adjustment payment mechanism which applied to journeys operated by South West Trains Ltd. [75167]
§ Mr. JamiesonThe Strategic Rail Authority's fares regime for London commuter operators—the Fares Incentive Adjustment Payment regime (FIAP)—links permitted fares increases to operators' performance over the previous 12 months. FIAP allows for a variation on the national cap (RPI-1 per cent.) of up to 2 per cent. to reflect improved performance and minus 2 per cent. to reflect deterioration in performance.
In the year to 31 July 2002 the number of trains arriving on time for most London operators, including South West Trains, improved significantly when compared with the preceding 12 months. This improvement means that the cap on these operators' regulated fares from January 2003 has been set at RPI—1 per cent. The SRA is currently reviewing the fares regime for London operators as part of its policy review of fares regulation. It will make recommendations to Ministers in due course. Any changes in policy will be introduced in 2004.