Richard Tracey AM, Conservative Transport Spokesman on the London Assembly, says and end to the perks culture at Transport for London and a willingness to engage with big brands could help freeze fares.
Last week we published the second report in a campaign aimed at encouraging TfL to make more use of commercial sponsorship across the underground (which was succinctly summarised on this website) calling on TfL to generate more money from the private sector by selling naming rights to stations.
It is part of a broader push by GLA Conservatives to encourage TfL to look more closely at how they could make the required savings, or generate sufficient additional revenue, to prevent future above inflation fare increases.
Fare increases have been a frustrating necessity of Boris’ time as Mayor. He inherited a huge hole in TfL’s budget and with a transport system starved of investment. TfL cannot keep fares in line with inflation without harming its investment programme. But if the money can be found elsewhere then the Mayor’s decision becomes harder to defend.
TfL’s generous perk culture is a good place to look for such savings. Scrapping the free travel passes gifted to family, friends or lodgers of TfL staff, for example, would save TfL at least £17 million a year; money that could be put towards bearing down on fares.
The pension scheme is another perk that demands scrutiny. Despite reform to public sector pensions across the country – predominantly a move from a final salary to an average salary scheme – TfL’s odd status as a sometimes private, sometimes public organisation, means its pension scheme is not undergoing reform.
For example, bringing employer pension contributions in line with the average paid by local government could have saved £144 million in 2011 alone.
With a budget running into the tens of billions of pounds, finding the money to prevent above inflation fares rises – only tens of millions in comparison – should be possible.
Telling TfL to look for the savings, however, or cancel projects they have already invested hugely in, is not going to produce results. But showing them where the money can come from, as GLA Conservatives are trying to do, may eventually force their hand.
Andrew Bowden says
I fail to see how axing travel perks will “save at least £17m”. Why? Because that money isn’t being spent. TfL are simply dishing out an Oystercard (or whatever – I have no knowledge of how this is implemented at all) to the recipient at a minimal cost, and the recipient is then using normal services.
There’s no guarantee that you will get £17m back in the fare box by axing this perk because there is no guarantee those using the perk will continue to use the services. Nor will you be able to reduce services by reducing demand because the numbers of people using the perk will be negligible overall.
So how is it a saving? If you can enlighten me, I’ll be very grateful, but unless you can it simply looks like pointless demonising of TfL staff.
DePiffle says
TfL could save money by not buying expensive, bespoke buses which then need a second member of staff on board to guard the unneccessary hole at the back.
Boris Johnson and his Conservative supporters can complain about fare increases, but let’s not forget that Boris Johnson chose to forego the revenue from the Western Extension of the Congestion Charge; it was Boris Johnson who chose to extend free travel to Freedom Pass holders to the morning peak; it was Boris Johnson who has chosen to give London residents aged 60 free travel on TfL services even though they are below the statutory age of entitlement to free bus travel.
Finally, didn’t Boris Johnson tell TfL to cancel projects they had already invested hugely in when he was elected? Tramlink extension? DLR extension? Cross River Tram?
ASLEF shrugged says
AB – I believe the £17m “saving” is based on the premise that everyone currently holding a TfL Dependants pass would purchase a Zone 6 yearly Travelcard if it was withdrawn. Utter nonsense obviously, my “dependant” uses her pass about half a dozen times a year to travel into town from Zone 3, not much saving there.
Andy Ross says
It’s worth noting that one of the ‘perks’ of being a London Assembly Member is free travel, the same perk which Conservative AM’s want to take away from staff and their dependants.
Boris and his Tory cronies have been left with egg on their faces, because they haven’t been able to break the resolve of LU staff to keep the conditions which they have fought so hard to achieve.
Some people get company cars, others get car allowance, LU staff get free travel for themselves, their dependants, or partners.
Which is the same perk London Assembly members get. I bet they won’t want to give up their own free travel !!