---

Rail Fares and Franchises

No, no, no. Clearly, the purpose of a management contract is not to renegotiate the franchise with the franchisee for the remaining life of the franchise; it is to prepare and protect passengers and services during a period when there may be some uncertainty. That is not the same as renegotiating a franchise to allow the franchise holder to stay in place for the duration of the franchise, which I believe is the normal interpretation of renegotiating a franchise. I would like to move on to fares, which I know is a subject of interest to many hon. Members and their constituents. I welcome the opportunity to discuss the policies that the Government have in place. As I suggested in my intervention on the Chair of the Select Committee, more than 60 per cent. of all rail journeys are made on regulated fares. The Government limit most operators to an average increase in regulated fares of no more than 1 per cent. above inflation each year. Regulated fares are there to protect those who generally have little alternative to rail when making necessary journeys—for example, season ticket holders or those needing to purchase a ticket on the day of travel for longer-distance journeys, where a regulated flexible fare, such as the off-peak return or super off-peak return, would apply. I was a little bemused, shall we say, by the hon. Member for Lewes making robust assertions about changes in unregulated fares, because the only conclusion one can draw from that is that he believes they should somehow become regulated fares, or that all fares should be regulated. That is a retrograde step if we want franchisees to be able to use their initiative to provide fares that are competitive and attractive to the travelling public.