thedbdiboy
Member
- Joined
- 10 Sep 2011
- Messages
- 1,053
You're absolutely correct that they couldn't do what they liked - but they were far freeer to make major changes to the fares structure and withdraw fares that were undermining the revenue base - for example the restructures of 1985 and 1993. The main thing was that annual fares rises were consistently above inflation because the Treasury sought to minimise the subsidy for BR.I struggle to believe that there was no fares regulation in the BR era. It may not have been public information. It may not even have been formal. I agree it wouldn't have been regulated in the sense of the minister setting limits pursuant to Regulations. But I can't believe BR had carte blanche to do whatever it liked to fare levels and the fare structure. The government was accountable to the public through Parliament for rail fares, and that continued to be the case after privatisation (formally for regulated fares and in political terms for other fares as well).
The problem in accountability terms with dynamic pricing is no journalist can report with any certainty what's happening to rail fares, how much they've gone up or down over time, etc. They're reduced to citing examples, but of course being journalists they try to find the most preposterously high fares they can and they are vulnerable to the industry and government coming back with counter-examples of good value fares, and the reader is left none the wiser.
In an ideal world I would prefer all fares to be distance-based and regulated. You could have certain trains that required payment of a demand-based supplement, but the level of the supplement as a percentage of the basic fare should be transparent, as should the basis on which the decision to charge the supplement on specific trains is made.
We don't live in an ideal world, though. We have regulated fares that constrain, in practice, operators' ability to increase Advance fares and I don't think we should just shrug our shoulders and accept we can't have that in the future.
However there was absolutely no indexation of any specific fares and no fare type was protected - the product structure was a matter for BR. In this sense it is much more likely that in future Government will pay attention to the maximum fares chargeable - the equivalent of anytime interavailable fares, with intervention elsewhere only if something looks to be politically unpalatable.
I would expect that in future there will be more transparency of data in terms of what fares are charged - e.g. average fares across the day, and at specific times, given the much greater use of yield managed fares where there isn't a clear published price. But that's not the same as formally regulating them.