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Ticketing and Concessionary Travel on Public Transport - United ...

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Ev 90 <strong>Transport</strong> Committee: Evidence<br />

authorities, especially in unitary areas, might cut local bus services in order to save <strong>on</strong> the subsidies<br />

they will be providing to c<strong>on</strong>cessi<strong>on</strong>ary pass holders? This should be c<strong>on</strong>sidered before the<br />

Government makes any decisi<strong>on</strong>s <strong>on</strong> local government reorganisati<strong>on</strong> or finance. The significance<br />

of unitary status is that it means that the same tier of government will be supporting c<strong>on</strong>cessi<strong>on</strong>ary<br />

pass holders as will be deciding <strong>on</strong> service levels for supported bus services.<br />

5.11 Are c<strong>on</strong>cessi<strong>on</strong>ary fares schemes suYciently integrated across diVerent modes of transport <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

diVerent geographical areas? I believe that c<strong>on</strong>cessi<strong>on</strong>ary pass holders living in areas that are very<br />

dependent <strong>on</strong> rail transport should be entitled to free travel <strong>on</strong> their local lines, but otherwise I<br />

accept that it may not be desirable to provide unlimited free travel <strong>on</strong> trains. The scheme coming<br />

into force in 2008 will provide integrati<strong>on</strong> across the whole of Engl<str<strong>on</strong>g>and</str<strong>on</strong>g> outside L<strong>on</strong>d<strong>on</strong>; I do not<br />

know what provisi<strong>on</strong>, if any, will be made for integrati<strong>on</strong> between L<strong>on</strong>d<strong>on</strong>, the rest of Engl<str<strong>on</strong>g>and</str<strong>on</strong>g>,<br />

Wales, Scotl<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>and</str<strong>on</strong>g> Northern Irel<str<strong>on</strong>g>and</str<strong>on</strong>g>.<br />

6. Let me c<strong>on</strong>clude by making the following recommendati<strong>on</strong>s.<br />

6.1 New legislati<strong>on</strong> should be introduced to make it clear that bus operators do have a right to make<br />

interavailability agreements provided that these do not exclude any third operator that may<br />

provide services which might be covered.<br />

6.2 Local transport authorities should have a duty to extend the validity of bus operators’ integrated<br />

tickets to supported services running in the same general area. The same should apply to return<br />

tickets where at least <strong>on</strong>e leg is by supported service.<br />

6.3 Local transport authorities should have a duty to include in their timetable publcity full <str<strong>on</strong>g>and</str<strong>on</strong>g> up to<br />

date details of all integrated ticketing schemes covering all or part of their area. Passengers would<br />

be able to carry such details with them which would help to avoid disputes with bus drivers <str<strong>on</strong>g>and</str<strong>on</strong>g><br />

train ticket oYces <str<strong>on</strong>g>and</str<strong>on</strong>g> c<strong>on</strong>ductors. (Note: at present there is not even a duty to provide timetable<br />

publicity—I believe there should be, but this is presumably bey<strong>on</strong>d the remit of this inquiry.)<br />

6.4 Rail operators should have a duty to develop integrated ticketing, including interavailability<br />

agreements with bus operators who run <strong>on</strong> parallel routes outside train operating hours or during<br />

hours when cheaper tickets are not accepted <strong>on</strong> trains.<br />

6.5 Rail operators should be given assistance with adapting ticket machines to issue all relevant tickets,<br />

as well as with providing for any relevant smartcards. Furthermore, in stati<strong>on</strong>s that straddle level<br />

crossings, such ticket machines should be available at both sides of the stati<strong>on</strong>.<br />

6.6 Penalty fares should not be imposed where the c<strong>on</strong>diti<strong>on</strong>s of (e) are not satisfied. Furthermore they<br />

should not apply to people who have legitimate reas<strong>on</strong> to access stati<strong>on</strong> platforms for purposes<br />

other than catching trains.<br />

March 2007<br />

Memor<str<strong>on</strong>g>and</str<strong>on</strong>g>um from <strong>Transport</strong> Investigati<strong>on</strong>s Ltd (TIL) (TPT 12)<br />

1. I am the Managing Director of <strong>Transport</strong> Investigati<strong>on</strong>s Ltd (TIL), a small business providing<br />

Revenue Protecti<strong>on</strong> support <str<strong>on</strong>g>and</str<strong>on</strong>g> c<strong>on</strong>sultancy services for rail operators. I have over 40 years experience in<br />

the rail industry, joining British Rail as a graduate management trainee in 1966, <str<strong>on</strong>g>and</str<strong>on</strong>g> having held a variety<br />

of posts up to privatisati<strong>on</strong>, including resp<strong>on</strong>sibility for this activity in the East Midl<str<strong>on</strong>g>and</str<strong>on</strong>g>s <str<strong>on</strong>g>and</str<strong>on</strong>g> for the former<br />

Southern Regi<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> Network SouthEast. Since privatisati<strong>on</strong> in 1996 I have undertaken a variety of<br />

c<strong>on</strong>sultancy roles, primarily in the fares <str<strong>on</strong>g>and</str<strong>on</strong>g> ticketing field. This work has included the development of the<br />

Oyster smartcard system for use <strong>on</strong> the nati<strong>on</strong>al rail network for TfL. TIL’s current main clients are TOCs,<br />

DLR <str<strong>on</strong>g>and</str<strong>on</strong>g> TfL, <str<strong>on</strong>g>and</str<strong>on</strong>g> we also do work in Irel<str<strong>on</strong>g>and</str<strong>on</strong>g>. The company has developed unique experience in the revenue<br />

protecti<strong>on</strong> field, <str<strong>on</strong>g>and</str<strong>on</strong>g> this covers staV training <str<strong>on</strong>g>and</str<strong>on</strong>g> supply, support work to combat fare evasi<strong>on</strong>, including<br />

debt recovery <str<strong>on</strong>g>and</str<strong>on</strong>g> prosecuti<strong>on</strong>, <str<strong>on</strong>g>and</str<strong>on</strong>g> the c<strong>on</strong>duct of fraud or ticket-less travel surveys. Although I have<br />

expertise across the area the Committee is investigating, I intend to focus my c<strong>on</strong>tributi<strong>on</strong> <strong>on</strong> revenue<br />

protecti<strong>on</strong> in the rail industry as this is an activity that is often not well understood <str<strong>on</strong>g>and</str<strong>on</strong>g> where<br />

misc<strong>on</strong>cepti<strong>on</strong>s can flourish. The purpose of this note is to suggest that the legislative framework is generally<br />

adequate for the protecti<strong>on</strong> of rail revenue, but that the practices deployed by operators are often less than<br />

optimal. In particular there is a fairly widespread failure properly to measure the extent <str<strong>on</strong>g>and</str<strong>on</strong>g> underst<str<strong>on</strong>g>and</str<strong>on</strong>g> the<br />

reas<strong>on</strong>s for fare evasi<strong>on</strong>, <str<strong>on</strong>g>and</str<strong>on</strong>g> therefore to take appropriate acti<strong>on</strong>. There is, <strong>on</strong> the Nati<strong>on</strong>al Rail network,<br />

a comm<strong>on</strong> belief in the benefits of closing access at stati<strong>on</strong>s <str<strong>on</strong>g>and</str<strong>on</strong>g> installing automatic ticket gates. Such<br />

schemes are costly <str<strong>on</strong>g>and</str<strong>on</strong>g> often a substitute for more creative strategies that might improve customer service<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> revenue c<strong>on</strong>trol.<br />

2. Railways <str<strong>on</strong>g>and</str<strong>on</strong>g> other public transport modes have traditi<strong>on</strong>ally suVered from revenue shrinkage<br />

through some failures to collect revenue <str<strong>on</strong>g>and</str<strong>on</strong>g> fare evasi<strong>on</strong>. The problem is as old as the industry <str<strong>on</strong>g>and</str<strong>on</strong>g> most<br />

approaches to it are not novel. Customers can be described as either motivated to pay or motivated to evade<br />

their fares, <str<strong>on</strong>g>and</str<strong>on</strong>g> then in turn as active or passive in this regard. Some<strong>on</strong>e who is active <str<strong>on</strong>g>and</str<strong>on</strong>g> motivated to pay<br />

will always try to do so, <str<strong>on</strong>g>and</str<strong>on</strong>g> the ticket sales channels must be optimised to allow that. A passive pers<strong>on</strong> will<br />

not make that eVort if the purchase of a ticket is made diYcult or the opportunity to pay is not presented.

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