21 September 2011    Norman Baker MP and Rail

Speaking at the Lib Dem conference transport minister Norman Baker MP gives an assurance but with a caveat that as soon as finances allows we will see an end of above inflation fare increases.

Going against previous conference policy which promised to cut rail fares Mr Baker said that major investment would help achieve the twin aims of economic growth and carbon reduction but an end to inflation rises could not be at the expense of transport infrastructure.

Conservative transport secretary, Philip Hammond, said earlier this year that above-inflation fare rises could disappear within four years. This could happen if reforms set out in the report published in May into curbing the rail industry’s escalating costs by Sir Roy McNulty. However, Mr Hammond ruled out future fare cuts quoting that £5.2bn-a-year state subsidy is unsustainable at current levels.

Highlighting a number of projects in the pipeline, such as replace "clapped-out rolling stock" to ease overcrowding, Baker said: "Of course, all this investment costs money, so regrettably rail fares are still going up. That is not to say that bargains can't be had – they most certainly can. My ticket from London to Birmingham cost me just £10.80. But that cannot hide the fact that we are still seeing regulated fares rise by more than RPI."

He went on: "It is clear from the McNulty report that there are huge efficiency gains to be wrung out of Network Rail. We are already acting to realise these, which will release billions of pounds. I want that money to be returned to the railway, in more investment and yes, returned to the passenger.
"I want our railway to be available for all. Just as soon as the public finances allow, we must end the era of RPI plus. In the meantime we must drive further improvements to the rail network."
He said the four words guiding the government's transport policy was "creating growth, cutting carbon. And let me make this clear – it's not growth or carbon reduction. We can have both," he added.

In the first meeting with ATCU Mr Baker gave commitment to Labour’s proposals for the £32bn north-south high-speed rail link. This commitment continued in his conference speech when he said the High Speed Two route, whose first phase between London and Birmingham is due to open around 2026, will be followed by a link to Manchester and Leeds in 2032.

Replying to the to the many objections by local residents to the planned route Mr Baker said the scheme would meet the "desperate need for more capacity north to south" and reach the parts that "other transport modes can't". This would ensure that prosperity was shared around the country rather than concentrated in London and the south.