London, Friday 19th July 2002
For Immediate Use
Contact Patrick Crozier - 020 8286 9563. e-mail address: patrick@libertarian.co.uk
For other contact and link details, see the foot of this message

HIGHER FARES ARE GOOD FOR YOU
 
The Libertarian Alliance, the UK's leading civil and economic liberties think tank has welcomed the news that rail fares are likely to be set free from government control.
 
LA Transport Spokesman, Patrick Crozier said:

"This is very much to be welcomed..  This will bring more money into the industry, encourage investment, reduce overcrowding and lead to the introduction of new services. It will bring closer the day when the industry can be set free from the ridiculous structure that the state has imposed on it. It will also create an environment in which well-run train companies thrive and the poorer ones go to the wall."
 
Responding to fears of a massive fare hike, Mr Crozier said: "Many people fear that the removal of fare controls will simply mean that train operators (TOCs) will put up the fares..  In part this is true, at least to begin with. Initially, peak fares will rise, there can be little doubt about that.  But this
will also reduce the number of people using trains at peak times and reduce overcrowding - just as it did in the 1980s when British Rail used fare increases to choke off demand."
 
"The interesting point is what happens next.. First of all, employers will have to decide whether they really need all their staff at work before 9 o'clock. This will stimulate demand for off-peak tickets for journeys after 9.30.  It will also create a demand for travel before the peak, so long as TOCs introduce reduced rate fares for those journeys as well."
 
"While it is true that the shorter-sighted TOCs will simply try to pocket the gains, the longer-sighted ones will not. They will introduce a wider variety of fares depending on when people choose to travel. They will introduce compensation packages in the event of delays. They will spruce up their stations where they don't rebuild them, introduce modern, electronic
ticketing systems, run cleaner, graffiti-free trains and introduce more reliable and punctual services."
 
"The demand for punctuality will increase the pressure for vertical integration..  TOCs will want to control the tracks over which their trains run. There is no p oint in running reliable trains over unreliable tracks..  Some TOCS, such as Stagecoach and National Express have already published proposals for doing this.  There will be massive pressure for the government to lift the moronic controls which prevent vertical integration."
 
"The absurd, government-imposed system of short-term franchising is also likely to be a casualty.  Operators will only invest if they know they will get a return.  In many cases investment will take years to make a profit. Franchises of only four or five years kill investment stone dead and will have to be abolished."
 
Mr Crozier continued: "This revolution will wreck those operators who think they can continue doing what they have always done. Slowly but surely they will lose markets as their passengers move to those areas of the capital served by the better TOCs."
 
"Fare control is very much a recent phenomenon. Before nationalisation in 1948 there were very few fare controls and very few complaints."
 
Notes for Editors:
 
Patrick Crozier is editor of the UK Transport Web Log www.uktransport.blogspot.com

Extended Contact Details:

The Libertarian Alliance is Britain’s most radical free market and civil liberties policy institute. It has published over 700 articles, pamphlets and books in support of freedom and against statism in all its forms. These are freely available at

http://www.libertarian.co.uk

Our postal address is

The Libertarian Alliance
Suite 35
2 Lansdowne Row
Mayfair
London
W1J 6HL
Tel: 07956 472 199

Associated Organisations

The Libertarian International - http://www.libertarian.to - is a sister organisation to the Libertarian Alliance. Its mission is to coordinate various initiatives in the defence of individual liberty throughout the world.

Sean Gabb's personal website - http://www.seangabb.co.uk - contains about 800,000 words of writings on themes interesting to libertarians and conservatives

Candidlist - http://www.candidlist.com - owned and maintained by LA Executive member Sean Gabb, it lists Conservative MPs and candidates according to their views on European integration. It had a major effect before the 2001 general election, and remains an important resource.

Liberalia - http://www.liberalia.com - maintained by by LA Executive member Christian Michel, Liberalia publishes in-depth papers in French and English on libertarianism, anarcho-capitalism and the free market. It is a prime source of documentation on these issues for students and scholars.

Libertarian Samizdata - http://www.samizdata.blogspot.com - works in association with the Libertarian Alliance and has an ever larger following. Check it out.