Back on track

Connex - The failed Tory profit-making franchise

Over the last couple of months have been working with colleagues on a number of potential solutions to reduce rail fares.

One of those that could be actively considered by Labour is the co-operative or social partnership model.

Some of my ideas below (policy suggestions)

Retain Network Rail in government hands

The model inherited by Labour in 1997 was fragmented and allowed the Tory-driven agenda of profit making into public services. The slavish devotion to profit leading to unsafe tracks and millions to be spent later as Labour had to fix the broken system. Never again.

Retain Network Rail in its current format as a not-for-profit enterprise and extend the principle.

Introduce not-for-profit Social Partnership / Co-operative train franchises

The not-for-profit model was adopted by Labour for Network Rail (see above) in the early-2000s.

The Labour principle could be extended and widened to franchises. Private or indeed state-owned franchises managed in tandem with local authorities or a collection of authorities which could manage it as an arms-length limited company.

This is not a socialist fantasy. Transport for London currently manages buses in a similar manner and the principle could easily be extended.

Transport Commissioners could be elected to manage bus and trains.

Either way retaining the efficiencies and management of the private sector whilst keeping prices down through removing the profit motive. A democratic mandate driven via the elected commissioner.

The Tories have always thought marketisation is the way to solve the probem; and they are ideologically wedded to this argument. Suggesting the creation of regional transport boards as limited companies with an elected leadership could be the solution.

Tickets

Scrap the glut of different types of railcards and introduce one single discount rail card (which would get discount; [over 60s (link with buses), students (NUS), forces (Military), AND income tax bracket)]. Income related ticket would require registration with certificate from HMRC on tax code / income as proof. Income tapering would remove the inherent bias on fares against poorest. It could be introduced into current system easily. Currently students and forces have to provide evidence.

Remove the different type of tickets and match online and ticket office prices

Technology

Passengers should be allowed to purchase season ticket online via ebank accounts or via direct debit monthy installments with discounts for collection at station kiosks. Already in part introduced but system is cumbersome.

Rail franchises should move towards touch-in touch-out system, linked to credit/debit card as ticket. Initial outlay paid for by bank loans on future income accrued from accounts using system. Offer reduction in price for online renewal so reducing station queues.

Your debit/credit card would then become the season train ticket.

Refunds

A suggestion that could be immediately implemented is days-in-lieu added on renewal equivalent to delays, calculated for previous month or year. This would not require a complex repayment system for season-ticket holders just a % calculation of journeys delayed on average and equalise that to days. Therefore a month with 10% delays would get free 3 days added to next months season ticket.

An annual ticket where the year previous has 10% delays would a month free.

Could be introduced with current technology with basic calculations. Customers would then feel they would be getting money back

Individual ticket holders entitled to online vouchers or 20% immediate refund at end station without having to complete complex form

If you loose annual / monthy season ticket should not require lengthy process of form filling. Immediate over-counter renewal possible

Company rail card

Encourage companies to mass purchase rail cards for staff and deducted via salary. Companies offered incentives to do so.

e.g. Those that register could be entitled to NICs deduction on employer contributions to encourage registration. Companies could retain profit on delays so recouping organisational loss for delays in lieu of payment. Bulk discount purchase would reduce cost-impacts

Income Generation from alternate sources

Stations should be centres for energy micro-generation / recycling. Solar panals, wind. Land owned by rail at sides is unused currently. Stations could be fitted to be energy self-sufficient and supply grid.

Government subsidy of solar specifically targeted on transport nodes invested through Green investment bank.

Paper recycling could be sold on the market

Nationalised Network Rail should own all stations and manage stock centrally so pooling efficiencies of scale and bargin-power negotiaton on contracts. These could then be tendered en-masse in auction process to coffee-chains, newsagents and services within. Asset must remain in public hands. Proceeds kept for station improvements.

Democratic Accountability

Local Authorities should establish transport user groups which should be able to scrutinise regional franchises. Transport company bosses compelled to report to Council Scrutiny Panels. These could report into regional LEPs

The next level up would be to have an elected transport commissioner and a regional transport quango with powers to commission and manage transport costs. This in reality be a small team but be democratically accountable. Transport for London with powers over rail is an example.

Rail fare increases

Legislation introduced to state average fares should not be an more than the average wage gain in the economy. This would mean investment in good times and not in recession. Follows cyclicity in economy and fairer.

Any increases above annual wage must be met 2:1 by equal government subsidy if the investment argued pursued by transport commissioner. This ensures affordability, will track economic indicators and when fares go up by more than average that government has to pay 2:1 more as a result. Of course whoever puts up the fares is at political risk.

Additional Perks: Value for Money

Rail Season ticket holders should be allowed option to top-up to include regional bus season / cinema / theatre tickets at a reduced rate so conferring other benefits.

In reality this could be linked to a credit/debit card deal. Could also be linked with other transport services / points system like BA.

This would disassociate the cost. A nectar card deal for instance could see reduced cost on season ticket or spending £50 on fuel in Sainsbury gets you £30 off. Let the companies do the slack; let the government or transport boards auction.

The above are positive solutions for the individual commuter above but we also need to make the tough calls on cost reduction. The immature amongst the right wing will attack this, I can imagine the comments now, but we do need to have a rationed debate.

Immediate cost savings and tax ideas

All train services on Sundays scrapped from non-core stations with hourly bus services from hub stations. (e.g. Chatham in Medway). Inter-city services between major cities retained but only to hub stations if desired. The hubbing of trains could see services run from the HS1 spine in central Kent from perhaps 3 or 4 core stations. Suggestions would be regular bus services from Medway station (Chatham) into Ebbsfleet International every 40 minutes - bus journey would take 20 minutes or so. From Ebbsfleet a 20 minute journey into London.

This would be unpopular but also allow allocated time for fixed track and works so steam-lining engineering contracts; cost reduction of not having unprofitable services on Sunday. Train usage on Sunday is minimal but yes it would hurt some.

Introduce VAT on air travel for all domestic flights and use subsidy to invest in rail. This will have impact of reducing unnecessary flights and allow investment in rail.