HC Deb 26 April 2001 vol 367 cc310-1W
Mr. Kidney

To ask the Secretary of State for the Environment, Transport and the Regions if he will take steps to restrict future fare increases by train operating companies. [158419]

Mr. Hill

Key fares are already capped at 1 per cent. below the rate of inflation and this will continue for replacement franchises. Train operators are free to price other fares according to market demand and competition from other forms of transport. But we expect train operators to bear in mind the need to increase passenger numbers when considering whether to increase unregulated fares.

Mr. Kidney

To ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the impact of the change in the level of public subsidy on rail fares. [158418]

Mr. Hill

No explicit assessment has been made. Subsidy levels were agreed at the time of franchising after a competitive bidding process. Franchising agreements protect key rail fares so that their prices are restricted by a cap that rises by PRI-1 per cent. annually. The key fares include all Saver tickets, or unrestricted standard returns where no Saver exists, and all standard weekly season tickets. Further regulation applies to London commuter fares, linking performance to the permitted increase.