Originally Posted by
BCram
That is exactly the crux of the point I hoped would be made. Somehow subsidies have been turned into a very poor way to run any enterprise that should be available to everyone at a reasonable price for the less well off in society.
Maybe the unions have allowed themselves to be goaded into strike action. Don't forget that every pay rise has been agreed by the union leaders and recommended to their members. They created the economic blizzard that brought down the Callaghan Government and public opinion about unions, imo, has not changed much from that time. They look after their members and seem to care little about the effects their actions have on their companies or their companies customers.
I think we should discuss the ethics of subsidies.
I looked up the report that Islay quotes from. I think the total figures for income are
Govt subsidy £13.3bn
Ticket sales £5.8bn
Other sales £700m
Other income £1.5bn
Total income £21.3bn
Costs £22.8bn
You can see that you would need to increase passenger numbers by 230%, if you didn't increase prices, to replace the Govt subsidy with ticket sales. I think the Work from home approach has taken away a significant number of rail commuters a figure of a drop in numbers of 20% has been mentioned. The unions appear to me to think that boosting the number of passengers is just making their job harder. Perhaps they should think differently?
I have not been able to find the equivalent levels of subsidy in Germany or France for the same date but in 2014 the German subsidy was €17 bn, for 79.3bn passenger kilometers. France was €13.2bn, for 83.9bn passenger miles in 2013. Britain was €9.2bn, for 65.1bn passenger miles in 2016.
It looks like the subsidy in the UK has gone up to £13.3bn or €14.6 .
We don't appear to be paying out a subsidy that is well out of alignment with France and Germany. In fact it may be that our level of subsidy is not as great as it is in other countries but the perception is that our subsidies encourage inefficiency and poor performance.
Maybe this is something for us to consider?