APPENDIX 13
Memorandum submitted by Merseytravel
INTRODUCTION
1. Merseytravel is the operating name of
the Merseyside Passenger Transport Authority (PTA) and the Merseyside
Passenger Transport Executive (PTE).
2. The Passenger Transport Authority (PTA)
is comprised of 18 elected councillors drawn from each of the
five metropolitan district councils in Merseyside: Liverpool City
Council, Sefton Metropolitan Borough Council, Knowsley Metropolitan
Borough Council, St Helens Metropolitan Borough Council and Wirral
Metropolitan Borough Council. The PTA was established in 1986
on the abolition of Merseyside County Council.
3. The PTA sets the transport policies in
the sub region, and the Passenger Transport Executive (PTE) implements
those policies. The policies are set out in the Merseyside Local
Transport Plan, a statutory document covering the period 2000-01
to 2005-06. The draft Local Transport Plan 2 was recently submitted
to the Department for Transport. This will be finalised in July
2006 and will set out the transport priorities for the sub-region
between 2006-07 and 2010-11.
4. While there are seven PTAs and PTEs located
in the metropolitan areas in the UK, Merseytravel is unique in
that the PTA and the PTE is one operating organisation.
5. The PTE Group, of which Merseytravel
is a member, has submitted a separate paper to the Committee.
This paper is submitted to assist the Committee with its inquiry
and draws specifically on the local experience since Merseytravel
took control of the train operating company which has had an impact
on the way Merseytravel has been able to manage fares on the railway.
6. In the light of Merseytravel's role in
supporting the provision of local, more regular train journeys
and the uniqueness of the Merseyrail Electrics service means that
this response will focus on the following issues raised by the
Committee:
— The comparative cost of rail travel
to passengers in the UK.
— The justification for the current
fare and ticketing structure, and the case for reform.
7. If it would assist Members' deliberations
further, Merseytravel would be delighted to give oral evidence
to the Committee.
CONTEXT
8. Merseyside continues to undergo great
change in economic growth over recent years. Those changes bring
with them the associated increase in movement of people. However,
levels of deprivation remain high and figures show that Liverpool
has the lowest car ownership in comparison with many other similar
urban areas. In Liverpool, 48% of households have no access to
a car (Census 2001). The percentages in Merseyside's other districts
is around 38%. In light of this and to support the ongoing economic
growth, Merseytravel and transport providers must provide an affordable
public transport network that allows the movement of people in
a safe and effective way.
9. In terms of passenger numbers on public
transport, bus is the most significant mode in Merseyside. However,
the declining trend in bus patronage across all the metropolitan
areas puts an increasing emphasis on other forms of public transport.
In Merseyside, the Merseyrail Electrics rail service has seen
an increase in patronage over recent years.
10. Merseytravel is responsible for making
sure that ticketing systems implemented across the network make
public transport easy to use, affordable, and contributes to attracting
and retaining passengers to the network. This includes administering
the pre-paid ticketing scheme and providing a comprehensive all
modes concessionary travel scheme.
11. Merseyside's train network is unique;
it is almost 100% separate from the rest of the UK rail network.
The network operates as a self-contained "metro" railway
using an electrified third rail network. Two years ago, the Government
recognised its uniqueness and gave Merseytravel control of the
local train operating company. Merseytravel then let a 25-year
concession to Merseyrail to operate passenger services on the
local network, Merseyrail Electrics, which has since consistently
been the best performing train operating company on the UK mainland
or one of the best. This is with the most intensive rail services
outside of London Underground.
12. Merseytravel is responsible for setting
a fares policy for Merseyrail Electrics.
13. Alongside the Merseyrail Electrics Network,
Northern Rail runs services along the City Line (see Map 1) towards
the east of Liverpool. Northern Rail is subject to timetabling
agreements with Network Rail and to the national fares policy
set by DfT Rail.
14. Other train operating companies servicing
Merseyside include Virgin trains, offering an hourly service to
and from London Euston, Central Trains services to and from Birmingham,
Norwich and Sheffield, and Trans Pennine services to and from
Manchester, York and Scarborough.
COMPARATIVE COST
OF RAIL
TRAVEL TO
PASSENGERS IN
THE UK AND
THE JUSTIFICATION
FOR THE
CURRENT FARES
STRUCTURE
15. There are two types of journeys undertaken
in Merseyside: the more routine commuter journeys that tend to
be local in nature and the longer journeys to other parts of the
country that are less frequent. Although local journeys are important
for commuters, in some cases, employment is outside the boundaries
of the region and in these cases, commuters are subject to a different
fare structure set by train operators other than Merseyrail Electrics,
which sets fares for the Merseyrail network.
16. At a local level, fares are historically
based with fare increases generally in line with inflation in
recent years. The average cash fare on the Merseyrail Electrics
system is currently £1.95 in peak time and £1.48 for
off-peak travel. On the local Merseyrail network, fares are governed
by Merseytravel, with a fares policy of an overall fare increase
allowance at the level of inflation (RPI). Within that parameter,
there is scope for individual fare increases of RPI + 2, provided
that the overall fares "basket" remains at RPI. This
allows for some limited demand management on the most popular
services.
17. Services outside the Merseyrail Electrics
service are governed by the national fares policy, making them
more vulnerable to higher cost increases. On the Northern Rail
service and other services into the region, an overall fare increased
of RPI + 1 is allowed with individual fare increases of up to
RPI + 6. This makes fares more varied compared with those offered
on the Merseyrail Electrics service. At present a journey from
Liverpool to Sheffield (a journey of 78 miles) costs £24.00,
although this is a standard fare it varies wildly according to
the planned time and date of return and the time of purchase.
18. The Merseyrail Electrics ticketing structure
provides a fair structure for local people, and the policy to
maintain fares at RPI levels ensures accessibility to everyone,
regardless of their economic circumstances.
19. Merseyrail Electrics' fares policy has
also ensured that rail is a feasible alternative to bus as a regular
mode of transport in the region. Tables 1-3 below show how rail
fares have changed over the past decade compared with bus fares.
Those presented for national services are subject to considerable
variation according to the time of booking, time and date of travel
and the nature of the ticket.
Table 1
MERSEYRAIL ELECTRICS VS BUS—PEAK FARES
| 95/96
£
| 04/05
£ |
% increase
|
| Merseyrail | 1.45 | 1.95
| 34.5 |
| Commercial bus | 0.77 | 1.30
| 68.9 |
| | |
|
Table 2
MERSEYRAIL ELECTRICS VS BUS—OFF-PEAK FARES
| 95/96
£
| 04/05
£ |
% increase
|
| Merseyrail | 1.10 | 1.48
| 34.6 |
| Commercial bus | 0.76 | 1.30
| 71.1 |
| | |
|
Table 3
NATIONAL FARES ON THREE MODES OF TRANSPORT
The rail fares for Sheffield, Edinburgh and London are the
standard day return fares allowing outward and return journeys
on the same day. The London price allows any return within a month.
The London price is complicated by the various prices available
between £24.00 and £175.00.
| Rail
£ |
Bus
£ | Air
£
|
| Liverpool to Manchester | 10.00
| 7.00 | N/A |
| Liverpool to Sheffield | 24.00
| £15.801 | N/A |
| Liverpool to Edinburgh | 52.70
| 29.00 | 65.002 |
| Liverpool to London | 175.00
24.003
| 28.20 | 165.00 |
| | |
|
1 —assumes return travel one day later
2 —need to book one day in advance
3 —price varies according to the time and day of travel.
THE JUSTIFICATION
FOR THE
CURRENT TICKETING
STRUCTURE, AND
THE CASE
FOR REFORM
Ticketing options in Merseyside
20. In voluntary partnership with local operators, Merseytravel
promotes and administers a range of pre-paid tickets. These include:
— Saveaway—Multi-modal off-peak day
ticket, available by zones, or across the whole region.
— Solo—Bus only season ticket.
— Trio—multi-modal season ticket within
Merseyside zones.
— Trio-plus—multi-modal season ticket
across Merseyside zones, with an extension beyond the Merseyside
boundaries for rail services.
The multi-modal tickets can be used on rail, bus and ferry
services. They are priced to offer the public freedom of choice
and an affordable service.
Merseytravel is currently implementing rail only season tickets.
The tickets offer an overall reduced fare compared with individual
cash fares and increase flexibility and choice for rail passengers.
The ticket is likely to cost around 85% of a Trio Pass, compared
with the bus only ticket which is on average 76% of a Trio Pass.
21. Information about ticketing options is promoted via
travel centres, the internet and a wide distribution of ticketing
centres across the sub region. People are able to contact Merseytravel's
Travel Line for further advice on ticketing options. Travel Line
was recently recognised by the DfT as the best travel advice line
in the country.
Merseytravel also has an extensive programme of facilitation
to ensure that people with specific access needs have information
about ticketing readily available to them. Leaflets, focus groups
and outreach work arranged by Merseytravel ensure a targeted approach
that specifically meets the needs of individual groups.
22. Merseytravel's website also has a link to the Transport
Direct website, launched in 2004. Linking to Transport Direct
ensures integration of information across regional boundaries
that will help inform passenger choice.
THE CASE
FOR REFORM
23. Merseytravel is in the early stages of implementing
a smartcard travel card for Merseyside. The two-year programme
to issue smartcards for concessionary travel passes is due to
commence shortly. The smartcard being implemented in Merseytravel
has been developed to ITSO standards, ensuring interoperability
with smart-based travel systems outside the Merseyside region
over the longer term.
24. The use of smartcards has become much more prominent
in recent years with the arrival of chip and pin payment cards.
But smartcards themselves are not new and have been in use since
the early 1980s. Advances in technology have made smartcards much
more versatile, valuable, cost efficient and user friendly.
For passengers, this will mean that one card can cover their
entire journey. The card can be recharged over the internet as
well as in person and this approach will give the passenger much
more control and choice over how they choose to travel. Smartcards
will enable truly integrated transport ticketing across the country.
25. However, the success of smartcards is subject to
smartcard readers being implemented across all modes of transport.
To be fully integrated, operators across all modes of transport
and regions will need to recognise any smartcard as an appropriate
method of payment. In order to help this, the ITSO standard was
introduced.
ITSO, which has been developed over many years and is now
being introduced, enables all modes of transport to utilise the
same smartcards. The ITSO specification allows smartcards to be
issued across a range of partners, using any form of co-branding
while at the same time offering certainty about the interoperability
of the card in other areas. ITSO will also avoid the risk of private
monopolies through propriety systems. It will manage the implementation
of improved ticketing technologies before separate, disintegrated
systems are introduced on a regional or sub regional basis.
26. A significant hurdle in the national implementation
of ITSO-compliant smartcards is the cost of installing reading
equipment across transport operations. Operators will see the
installation as a significant capital outgoing that could otherwise
be spent on more urgent transport improvements.
Smartcards do, however, offer some important benefits for
operators. Given the demand for pre-paid ticketing, smartcards
will allow more accurate passenger tracking and a new form of
reimbursement. They will also provide information about customer
needs and provide opportunities for more tailored transport planning
to meet passenger demands.
27. The future of transport ticketing cannot proceed
without serious consideration of the role of integrated smartcard
ticketing. Members are encouraged to consider the role smartcards
will play when considering solutions to some of the challenges
of the current structure of fares. Only once a more integrated
approach is in place can we proceed with a fair transport system
that offers sufficient flexibility and information for the passenger
for some years to come.
5 October 2005
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