Rail Fares

EDM number 700 in 2008-09, proposed by John McDonnell on 04/02/2009.
Categorised under the topic of Railways.

That this House notes the research undertaken by the Rail, Maritime and Transport Workers Union which demonstrates that the big five transport groups, Arriva, First Group, National Express, Go-ahead and Stagecoach posted increases in dividend payments of between 10 and 33 per cent. in 2008; further notes with concern that despite these high profits, passengers endured hikes of six per cent. on regulated fares and up to 11 per cent. on unregulated fares at the start of 2009; is concerned that this institutionalised profiteering is in part due to regulated fares being linked to a formula where the January increase is based on the preceding July's retail price index (RPI), plus one per cent; further notes, however, that the severe recession means the RPI is likely to fall below zero in July 2009, meaning that passengers will receive a welcome reprieve in fare prices; in these circumstances, calls on the Government to ensure that the train companies do not cut services or make redundancies but instead shoulder the cost of the decrease in fares through a freeze in their dividends; and believes that if they are not prepared to freeze their dividends and protect services and jobs they should relinquish their franchises and rail services returned to the public sector.

This motion has been signed by a total of 44 MPs, 1 of these signatures have been withdrawn.