Orders of the Day — Transport Bill

Part of the debate – in the House of Commons at 9:31 pm on 12 February 1985.

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Photo of Mr David Mitchell Mr David Mitchell , North West Hampshire 9:31, 12 February 1985

I have already given way several times.

My hon. Friend the Member for Wellingborough asked a sophisticated and thoughtful question, as did the right hon. Member for Mansfield (Mr. Concannon). They asked whether it would be possible for concessionary fares to be provided without having to have tokens, through some system of bus passes and so on. I asked my hon. Friend the Member for Wellingborough what sort of numbers caused him concern. He wanted to know how people could manage if there were four or five operators in the scheme. I should point out that in Birmingham there are 32 operators in the scheme, and at present they do not use tokens. I hope that that will be of some reassurance to him.

Several hon. Members, including my hon. Friends the Members for Swindon (Mr. Coombs) and for Wellingborough and the hon. Members for Hartlepool (Mr. Leadbitter) and for Isle of Wight (Mr. Ross) mentioned cross-subsidy. We tend to think about the beneficiaries of cross-subsidy and not to recognise that there are payers as well. Many constituents are being taken to the cleaners by the excess profits that are taken from the better routes. When the Bill is enacted, there will be lower fares and more services on the better used routes.

Thoughtful people will recognise that over-reliance on cross-subsidy has been a major factor in the industry's decline. For every 10 per cent. increase in fares, 3 per cent. of the passengers are lost. The industry is cross-subsidising to the detriment of its major potential customers on its better routes. That means that the blame for much of the industry's decline can be laid at the door of the system.