MPs may launch an inquiry into ticket rises

RAIL firms today faced a fresh parliamentary inquiry into "enormous" increases in rail fares.

The chairman of the all-party Commons transport select committee told the Evening Standard that an investigation into the cost of tickets might now be launched.

Labour MP Louise Ellman warned that customers were being priced off the railways with inflation-linked fare rises at a time when the Government is seeking to promote green travel.

She said: "We should be making it easier to ride by train. We have criticised train companies in the past over ticket prices and may well return to this issue in another inquiry. These are enormous increases."

MPs had pleaded with Transport Secretary Geoff Hoon to intervene to stop the exceptionally big rises.

The transport committee warned in a July report that it was "deeply concerned" by the "rapid shift" in rail funding from taxpayer to passenger.

The MPs called for the transition to be "paced" to avoid sharp jumps in the cost of tickets.

Mr Hoon refused to intervene and the committee is poised to renew the debate over the formula for setting fares.

More than 30 MPs signed a Commons motion last month calling for the Government to ban inflation-busting fare rises.

The increases come as it was revealed that rail firms are making a combined profit of £330million. Go-Ahead, which runs services into London from Kent, made pre-tax profit of £58million in its most recent half-year figures and Stagecoach made a surplus of £105million.