Lord Adonis will look at East Coast line fares

Nov 14 2009 by William Green, The Journal

FARES on East Coast rail services could fall in future with Transport Secretary Lord Adonis demanding passengers get “value for money”.

Speaking to The Journal, Lord Adonis, pictured, said the new state-owned company running East Coast trains will not change fare increases already set for January because it would be a “bureaucratic nightmare”.

But he confirmed that some ticket prices could fall on the East Coast route – linking the region with London and Scotland – in future, although the issue needed to be looked at “carefully”.

“Fare changes after January will be the responsibility of the new company and I would expect those to reflect good value for money,” said Lord Adonis.

The Transport Secretary said passengers would enjoy “steady improvements” that would set the standard for the re-letting of the franchise to the private sector in two years’ time.

But he admitted the Government’s transport budget would be hit after previous operator National Express proved unable to pay a total of £1.4bn to the Government for the right to run the franchise.

Lord Adonis said the East Coast route was profitable, but it was unclear how the business would development in the middle of a recession.

“The profits that are there will accrue to the owner, which is the Government.

“But they are likely to be less than the premium payments, which National Express committed to.

“It means the Government’s rail budget will take a hit,” said the Transport Secretary.

While there would mean a cost to taxpayers, Lord Adonis said passengers would not suffer because the Government was committed to maintaining service levels.

He also praised East Coast chairman Elaine Holt as an “outstanding” rail manager.

She left troubled South East rail operator First Capital Connect “long before” the opportunity to run East Coast services came up, said Lord Adonis.