Commuters face the biggest shakeup of the railways since the ignominious Railtrack era after a government-commissioned report called for £1bn in costs to be stripped out of the industry – and for it to give all involved a "better deal". An overhaul of the fares system was the most eye-catching recommendation in a study by Sir Roy McNulty, former chairman of the Civil Aviation Authority. The report into rail industry costs also outlined changes to slash the £5.2bn state subsidy, including phasing out ticket offices in small stations, removing conductors and giving train operators control of maintenance on some routes.
McNulty said fares in the UK were 30% higher than in France, Holland, Sweden and Switzerland, with operating costs running 40% higher than those countries. "There is a clear imperative to give both farepayers and taxpayers a better deal," McNulty said. "This industry has a serious cost deficiency issue to address. Everyone concerned must be aware that passengers are paying above the odds."
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