Rail fare rises are due to capacity constraints

Dr Steve Davies features on BBC Five Live

Dr Steve Davies, Education Director at the IEA, features on BBC Five Live to discuss whether or not the announced increases to rail fares for 2015 are fair. 

In the interview, Steve argues that it is not a question of fairness. The rail industry is at full capacity and the rise in price is an inevitable measure in order to allocate a scarce resource. The fundmental problem is that the government have not expanded capacity enough to meet increasing demand.

Steve makes the point that huge efficiency gains are to be had if the operating companies were allowed to take over the physical infastructure firms, easing the financial burden on passengers. Equally, the government should scrap projects such as HS2 and invest some of that money into expanding existing lines. 

You can listen to the programme in full here. Steve's segment begins at 01:13:50.

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