Link to this page: http://www.socialistparty.org.uk/issue/513/3523
From The Socialist newspaper, 6 December 2007
Rail fares unfair
THE PRIVATISED firms in the Association of Train Operating Companies (ATOC) are raising rail fares throughout Britain again - this time by up to 15% from 2 January. ATOC says regulated fares, including season and saver tickets, will increase 4.8% - 0.6% above the RPI measure of inflation.
But the government's policy is to make rail users pay more of the privatised system's costs. Passengers' annual contribution to railway services are to nearly double from £5 billion to £9 billion by 2014. Fare rises on some routes are way above the average increase.
Weekly season tickets from Hayes in suburban south London will cost £28.50 in 2008, instead of the present £24.80. This Southeastern train service is run by Govia, a joint venture company between the Go Ahead group and Keolis.
Go Ahead's profits last year were £97.8 million and it increased its dividend payments by 17% including paying £2.2 million to JP Morgan bank. Keolis is partly owned by Deutsche Bank, whose earnings surged by 70% in 2006.
Govia received a £1.1 billion state subsidy this year after taking over a West Midlands rail franchise. But this multinational pleads poverty and has been allowed to put passengers' fares up by inflation plus 3% on its London to Northampton line and up to 14.5% in Southeastern services.
ATOC blames fare increases on reduced subsidies to some train operators. Yet these franchises are very profitable.
The nine TOCs and rolling stock companies' profits rose from £584 million in 2002 to £894 million in 2006 though they only paid £71 million tax.
"The private franchises are interested only in lining their shareholders' pockets,'' Bob Crow, RMT rail union general secretary, commented. "We need a public railway run in the interests of the public. The time has come to bring the franchises back into the public sector in a single, coherent public body.''
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In The Socialist 6 December 2007:
System change not climate change
Feature: The free market brings fire, flood and famine
Workplace news and analysis
Socialists and the trade union leaderships
What we think
Education
Compulsory school to 18 - a rosy future for young people?
International socialist news and analysis
Chavez referendum result a big setback
Annapolis - a framework for further conflict
Kosova: After the elections - before the explosion
Northern Ireland classroom assistants
Argos strike in southern Ireland
South African miners strike over safety
Socialist Party review
The socialist review: 'Taking Liberties'
Post Office and CWU
Keep the 'people's Post Office' public
Workplace news
Unison's right wing still witch-hunting
Manchester's striking mental health workers: Defending trade union rights
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