Member of Parliament for North Ayrshire and Arran Katy Clark has attacked train operating companies for increasing fares this January despite giving large dividends to shareholders. Research done by the Rail, Maritime and Transport Workers Union highlighted the fact that the big five transport groups (Arriva, First, National Express, Go-ahead and Stagecoach) posted increases in dividend payments of between 10 and 33 per cent in 2008 yet passengers faced regulated fares increases of 6% for most journeys within the UK and average unregulated fare rises of 7%.

Speaking on the subject Ms. Clark said “I am appalled at the decision to increase train fare rises in January this year. Whilst shareholders of the major train operators have received huge dividends on their investments passengers have faced increased fare prices at a time when many are struggling with the current economic climate and when the Government should be encouraging more people to use public transport.”

“It is vital that the rail service is run for the benefit of the public who use it and not for the shareholders of the private companies that operate the trains. In these difficult times it is vital that there is a freeze on all fares for the foreseeable future. This needs to be paid for out of shareholders profits and not by a reduction in staff or the quality of service provided to customers. ”

The local MP has signed Early Day Motion 700 on the subject.