ATOC responds to Labour’s claim they are “ripping people off”

Responding to Ed Miliband’s claim that train companies are “ripping people off”, Michael Roberts, Chief Executive of the Association of Train Operating Companies, said:

“Ed Miliband is at best suffering from amnesia or at worst displaying rank hypocrisy. Train companies are subject to rules laid down by the Department for Transport, rules that were created and rigorously implemented by successive Labour Transport Secretaries. It was also his party in government that switched from annual below to annual above-inflation fares rises in 2004 to reduce taxpayer subsidies to the railways.

“At a time when Britain needs the private sector more than ever to boost economic growth, this unsubstantiated slur seems to confirm an anti-business bias at the very top of the Labour party and is a unwarranted insult to the tens of thousands of people who work on the railways day in and day out to help keep the country moving.”

Vision for the future of railways

Better services, improved passenger information, and cuts in the cost of running the railways have been outlined in future plans announced by rail chiefs.

Described as an initial industry plan, the programme covers the period 2014 to 2019, with the industry aiming to cut rail costs by £1.3 billion a year by the end of this decade.

Plans include £5.6 billion-worth of schemes, including the Northern Hub – a £560 million plan to deliver more than 700 extra services a day between Leeds, Manchester, Liverpool, Newcastle upon Tyne and Sheffield.

The rail chiefs’ vision also includes journey time improvements in the East Midlands, Yorkshire, Bristol and Oxford areas and electrification of the Midland main line, the north trans-Pennine line, and further electrification schemes in Scotland.

The plan also envisages improvements to a number of stations including Fenchurch Street in London and Liverpool Central, as well as a £200 million scheme to improve services between Inverness and Aberdeen in Scotland.

By better linking Britain’s major cities, an extra 180,000 peak-time seats could be provided, as well as accommodating a 30% increase in freight.

Rail chiefs also announced plans to move from 800 signal boxes to 14 modern signalling centres. The hoped-for schemes, which will need Government approval, are in addition to £4.9 billion-worth of ongoing projects such as the Thameslink and Crossrail schemes in London and already-announced electrification schemes such as the Great Western line.

The rail industry also spoke of trying to improve the passenger experience in key areas such as journey information, comfort and accessibility.

Michael Roberts, chief executive of the Association of Train Operating Companies, said: “Rail has a bright future in supporting a successful green economy in the years ahead. This plan shows how we can do that by providing a better quality of service to growing numbers of passengers at a more affordable cost.

“We look forward to working with government to ensure the right framework is in place to make this possible.”

Train passengers want ‘fewer delay excuses’

From: Metro.co.uk

It may be the fall-out from that disastrous ‘wrong type of snow’ announcement a few years ago but rail travellers no longer have the time for excuses about delays or cancellations, according to train customer watchdog Passenger Focus.

Commuters want ‘more honesty and fewer excuses’ as they increasingly rely on radio and TV information rather than the botched ‘real-time’ announcements from the rail companies, the watchdog has said.

The accepted good practice of confirming a delay within two minutes of an unscheduled stop is no longer being delivered, according to a Passenger Focus report.

And it’s not enough for announcements to be humorous, nor for the notices be filled with ‘over-the-top empathy’. What they wanted was ‘genuine’, ‘engaged’, ‘alive’ and ‘caring’ rail announcements.

Passenger Focus chief executive Anthony Smith said travellers understood things sometimes went wrong

‘The railway needs to explain the causes of delay in language people trust, and more needs to be done to warn people of problems, so they have a chance to change their plans and avoid them,’ he said.

A spokesman for the Association of Train Operating Companies replied: ‘Improving information during disruption is now a priority and we recognise we needs to get consistently better at it.’

“Excuses please”; £200m cost of fare dodging on the railways, figures reveal

Fare dodgers are depriving the rail network and other passengers of an estimated £200m a year, according to figures published by the Association of Train Operating Companies (ATOC) which represents Britain’s train operators.

Fare dodgers who choose to travel without buying a ticket are estimated to be making more than 110,000 train journeys each and every day on the rail network.

The figures come as train companies publish a list of some of the more memorable excuses used by passengers caught travelling without a ticket.

Examples of excuses given by fare dodgers for not buying a ticket include:-

“I’m related to The Queen so I don’t need a ticket.”

“I’m in the Zimbabwean SAS, on covert ops.”

“Don’t you know who I am?”

“What’s a ticket?”

“Do I need a ticket? I thought the railway was free.”

“If the ticket man doesn’t see me then I don’t need one.”

“I’m a freeman of the land, I don’t recognise the law and the law does not apply to me.”

An adult travelling with a child ticket said “I thought I was a child until I was 21.”

A passenger claimed he did not buy a ticket because “I didn’t think you would accept my fare.”

“I thought by hiding in the luggage rack you wouldn’t see me.”
The hundreds of millions of pounds lost every year due to fare dodging is money train operators could otherwise invest in improving services for passengers.

It is estimated that the £200m currently lost every year due to fare dodging would be enough to:

– Lease over 1,300 extra commuter carriages, or;
– Lease around 800 extra inter-city carriages for longer distance journeys, or;
– Pay for the upkeep of around 380 stations for the next five years.

Train companies have a number of safeguards in place aimed at ensuring that customers unable to buy a ticket are not given a penalty fare. Staff are regularly updated about ticket machines which may not be working and other circumstances which may prevent people from buying tickets. Passengers should check with their train operator what its policies are on ticketing and fare evasion.

David Mapp, Commercial Director for the Association of Train Operating Companies (ATOC), said:
“It’s frustrating for the vast majority of honest passengers who do pay for their ticket when fare dodgers’ selfish actions suck millions of pounds out of the railways each year. That’s money both train companies and passengers alike would rather see going back into further improving services.

“Train companies deal with fare dodgers in a fair but firm manner. Where there is a genuine reason for someone travelling without a ticket, train companies will always use their discretion. Strong deterrents are in place to ensure that the vast majority of passengers don’t end up paying for the few who think they can get away without buying a ticket.

“As these excuses show, there are always some people who choose to spend time thinking up an excuse rather than buying a ticket.”

Railways have become a ‘rich man’s toy’

From: Evening Standard

Railways have become a ‘rich man’s toy’ but factory workers will still feel the benefits of a new high-speed link even if they do not get to use it, the Transport Secretary said.

Philip Hammond said action was needed to bring down some “eye-wateringly expensive” fares so that the whole network became more accessible to people on lower incomes.

It was unlikely that the socio-economic make-up of passengers would be much different on the new HS2 line between London and Birmingham than the West Coast Mainline, he told MPs.

WCML Ticket Prices Range from eye-wateringly expensive to really quite reasonable

However the massive investment would not only benefit passengers who enjoyed the faster journey times, he insisted as he gave evidence to the Commons Transport Committee.
“If you are working in a factory in Manchester you might never get on HS2 but you would certainly be benefiting from it if the sales director from your company is routinely hopping on it to jet round the world from Heathrow in a way that brings in orders that keep you employed,” he said.

One study suggested average incomes in Birmingham could rise by £300 as a result of the link, he said. It is hoped that the high-speed line will be extended to other cities such as Manchester.

His comments came in response to questions about whether HS2 would be made affordable.

“Uncomfortable fact number one is that the railway is already relatively a rich man’s toy.
“People who use the railway on average have significantly higher incomes than the population as a whole – simple fact,” he said.

He added: “The assumptions underlying the patterns of use of HS2 assume similar pricing to the West Coast Mainline, which I have said before ranges from eye-wateringly expensive to really quite reasonable, if you dig around and use the advance purchase ticket options that are available.

“And therefore the assumption is that the socio-economic mix of passengers will be broadly similar to those using the West Coast Mainline.”

Mr Hammond tried to play down the significance of his “rich man’s toy” comment after the hearing, insisting he had simply stated a fact about rail users and denying blaming high fares.

But he came under fire from Labour and train user groups who pointed the finger at his decision to allow fares to rise an average eight per cent next year for pricing some people off the network.

Commuters reacted with horror last month when the Government changed the formula for calculating increases, allowing the higher than expected hikes.

Speaking to the BBC, Mr Hammond said: “Is the railway expensive? Yes it is. Is that because we have too high costs in our railways? Yes it is.

“The Government is determined that, with the rail companies and Network Rail, we will tackle excessive costs… so it becomes more affordable for taxpayers and fare payers alike.”

From next year rises to regulated rail fares, which include season and saver tickets, will be calculated by adding three per cent to the headline retail prices index (RPI) rate of inflation for July. Previously it was RPI plus one per cent.

But the eight per cent rise can be taken by train companies as an average, meaning passengers could face even higher increases in their commuting costs.

At the time, Mr Hammond said raising fares was “a difficult decision” but extra money was needed to guarantee improvements which could ensure the railways were better value for money in future.

But shadow transport secretary Maria Eagle said the Government was “totally out of touch with the cost of living crisis facing commuters” and failed to understand how “eye-watering rail fare rises” would add to the burden on families.

Stephen Joseph, chief executive of the Campaign for Better Transport said: “Philip Hammond’s description of rail fares as ‘eye-watering’ must lead the minister to reconsider the steep fare rises currently planned by Government.

“Far from being simply ‘a rich man’s toy’ trains are also vital for many of those on more moderate incomes who need to get to work, and the Government will price many off the railways if it carries on with its plan to increases rail fares at three per cent above inflation over the next few years.

“Instead, the Transport Secretary’s promised fare review must deliver simpler, fairer and affordable rail fares.”

A spokesman for the Association of Train Operating Companies said it catered for passengers “from all backgrounds who travel on a range of different tickets.

“The average price paid for a single journey comes in at around five pounds and the sale of cheap advance tickets has doubled in the last few years, with almost a million sold every week.

“The Secretary of State is right to point out that the benefits of rail are felt well beyond the people who travel by train. The nation’s railways support jobs and businesses and play a key role in the British economy.”

Half a million rail workers enjoy free or discounted travel

Another slow news day at the Daily Telegraph

Half a million British railway workers and their families are travelling for free or with large discounts as commuters face fare rises of up to 13%, The Daily Telegraph can disclose.

More than 160,000 current and former railway workers and contractors have rail passes which in many cases entitle them to unlimited free rail travel for life.

The benefit also extends to spouses and children, taking the total number of pass-holders into the hundreds of thousands.

The news is likely to anger commuters who are having to pay as much as £500 extra for season tickets following steep price hikes earlier this month, and prompted calls from passenger groups for an immediate government review of rail industry perks.

The Association of Train Operating Companies, which keeps records of rail passes issued by franchise holders, disclosed that 80,000 current workers hold passes that entitle them to travel for free or for just 25 per cent of the cost of the top-priced ticket on their journey.

Another 82,000 retired railway workers enjoy the perk, meaning that millions of free or discounted rail journeys are being made every year.

ATOC said 10,000 current and former staff, together with 20,000 dependants, are entitled to free rail travel for life, with the remaining 152,000 beneficiaries of the scheme, and their families, receiving discounted travel.

The taxable perk has an inevitable knock-on effect for ordinary travellers, who would pay less for their tickets if the rail industry did not allow so many of its staff to travel for free or at a heavy discount.

In May Phil Hammond, the Transport Secretary, announced a Government review of rail fares and promised “an end to the era of above-inflation fare increases to passengers”.

Stephen Joseph, chief executive of the Campaign for Better Transport, said: “The Government’s forthcoming fairness review must look at these concessions in the light of the fare rises that we have seen this month.

“These concessions may be part of previous agreements, but the fairness review should make sure that the balance is right.”

ATOC said 50,000 of the 80,000 current staff who have rail passes had their perks “safeguarded” for life because they were employed by British Rail before privatisation in 1993.

Others employed since then, including contractors, receive either “status passes”, entitling them to free travel, or “box cards” which give them free travel 20 times per year.

Earlier this month the announcement of above-inflation ticket price rises provoked fierce opposition from rail travellers.

Protestors at London Waterloo station staged a demonstration against average price increase of eight per cent, with some tickets going up by as much as 13 per cent.

Theresa Villiers, the rail minister, has insisted the wallet-busting increases were essential as part of the Government’s deficit reduction plans, and would enable rail companies to invest in improved services.

A spokesman for ATOC defended the perks, arguing that they are protected by law.

“Travel for safeguarded staff is enshrined in the Railways Act 1993 and provisions now are significantly less generous than they used to be.”

—————————————————————————————————————————————————–

Dear Daily Telegraph

Does the phrase “Pot Calling The Kettle Black” mean anything to you?

Taken from your own careers web pages:-

Careers@Telegraph:

“All Telegraph employees receive a competitive salary and bonus scheme (where applicable). We also offer a generous benefits package which includes: Bupa Healthcare, Pension, 25 days Holiday (rising to 30 days after first three years of service), Life Assurance and Personal Health Insurance. In addition to the above core benefits we also offer the following non-contractual benefits to employees: In-house GP, Physiotherapists, In-house Masseuse, In-house Gym and onsite Studio Classes, Employee Assistance Programme, Dental Care Scheme, Bikes to Work Scheme, and Season Ticket Loans.”

Please remove these benefits from your employees and adjust your cover price accordingly as you are obviously overcharging your readers to fund these “perks”.

To the Great British public:

Next time you go shopping or out for a bite to eat at a chain restaurant, please feel free to complain about the over-inflated prices caused by their employee discount schemes, it is obvious that this is the reason for prices on the High Street being so high and all employees should be held to account.

It is nice to see that once again the Telegaff have used reasoned argument and balanced reporting to fill column centimetres in what should have been tomorrows chip wrappers.

 

Rethink on rail franchising welcomed by train operators

A REVISED franchise timetable announced by the transport secretary has been welcomed by the Association of Train Operating Companies, but the largest rail union has condemned the new plans as a ‘rip-off’.Philip Hammond has reduced the length of the First Capital Connect franchise, and extended others.  He has also accepted that East Coast cannot now return to private sector operation before the end of 2013.

The transport secretary said the changes were being made to provide ‘clarity to the market’.

He explained: “In producing this timetable, I have had regard to the impact on bidders and  their sub-contractors of trying to compete for too many franchises at once, and the likely reduction in value for money to the taxpayer that would result. “

The present FCC franchise will now end in September 2013, almost three years early

Mr Hammond’s new timetable means that Great Western and Thameslink (currently First Capital Connect) have been brought forward (by 35 months and 18 months respectively), the next Northern and TransPennine Express can now have a simultaneous start date of April 2014, while two other franchises (East Coast and Greater Anglia) have been extended.

In at least one case, Mr Hammond’s hand has been forced: FirstGroup has already announced that it will surrender the Great Western franchise in 2013. The group therefore avoids paying more than £800 million in premiums which would have been due in the last three years of the original contract.

Three franchise replacements – West Coast, South Eastern and Essex Thameside (currently c2c) – remain unchanged. However, talks are continuing over whether Virgin Trains should continue to operate West Coast between March 2012 – its original expiry date – and December, with the Department for Transport’s own operator Directly Operated Railways poised to step in to fill the gap if necessary.

ATOC, which has been calling for less restrictive franchises, welcomed Mr Hammond’s announcement.

The Association’s chief executive Michael Roberts said: “The next few years present a chance to improve fundamentally how the railways are run.  On the right terms, longer and less prescriptive franchises would give train companies more opportunity to invest in improvements, respond more quickly to passengers’ needs and reduce costs.

“We welcome the government’s commitment to a horses for courses approach to franchising. The secretary of state rightly recognises the scale of work ahead to translate principle into practice – his announcement will allow the government and bidders alike to plan how best to respond.”

However, the RMT union dubbed the transport secretary’s plans a ‘rail franchise rip-off’, particularly as the next round of franchises are expected to last longer.

Online train fare jargon ‘can make passengers pay too much’

Rail passengers may be paying too much for train tickets bought online, a consumer watchdog says.

Train companies that use websites to sell tickets must do more to ensure passengers are not overcharged, added Passenger Focus.

Operators and the sites themselves need to make clear the difference between tickets that are only for specific trains and those that can be used on any service, the group said.

Restrictions associated with the time of travel also need to be made clear, as well as the ‘permitted routes’.

Jargon on tickets needs to be cut and a range of improvements are required to make it easier for passengers to buy tickets on the internet, Passenger Focus added.

The watchdog’s chief executive, Anthony Smith, said: ‘It is too easy to pay over the odds simply through lack of familiarity with the fares system and its bewildering jargon.

‘Making sure passengers are not overcharged when they buy online may help improve passengers’ perceptions of fares and value for money on Britain’s railways.

‘As more and more tickets are sold online, it is vital this is got right.’

Gerry Doherty, leader of the TSSA rail union, said cuts in ticket office staff levels and opening hours had forced more passengers to book online. ‘Ministers must ensure that when they award longer rail franchises, they insist that ticket offices are kept open to ensure a fair deal for passengers,’ he added.

The ‘vast majority’ of the millions of rail passengers who travel each day were getting the right ticket for their journey, a spokesman for the Association of Train Operating Companies said.

‘We are continuing to work closely with the industry and Passenger Focus to ensure we make it as easy as possible for passengers to find the right ticket at the right price,’ he added.

Rail passengers make 5% more journeys

Rail passengers made almost 5% more journeys in the first three months of 2011 than in the same period last year.

There were 316 million journeys in January-March 2011, up on the snow-hit winter of 2010, the Association of Train Operation Companies said.

In the year to March 2011, 1.34 billion rail journeys were taken, a 6.6% rise on the previous 12-month period.

Atoc chief executive Michael Roberts said the price of petrol had encouraged people to move from car to train.

The figures for the beginning of 2010 were affected by the bad weather of the January of that year.

A survey by Ipsos MORI for Atoc suggested a sixth of rail users have switched from car to train for at least one journey during February and March this year.

About half blamed the price of petrol.

Mr Roberts said: “It’s been a strong quarter on the railways, with more and more people choosing to travel by train, despite tough economic times and tight family budgets for many.

“At a time when high petrol prices are a concern to many households, the fact that more people are choosing to travel by train underlines the vital role that rail has to play in the economy’s continued recovery.”