"7 IN 10 LONDONERS WILL NOT BENEFIT FROM MAYOR'S FARE FREEZE PRE-ELECTION CON" - POPE

12.01.00pm GMT Mon 29th Oct 2007

Commenting on reports that the Mayor is to freeze cash and Oyster Pay As You Go fares for 2008, Liberal Democrat Transport Spokesman on the London Assembly, Geoff Pope, said:

"Fare freezes are always welcome but this announcement is another pre-election con by a Mayor desperately chasing good headlines. The reality beyond the spin is that up to 7 out of 10 Londoners will not benefit from this freeze on pay as you go and cash fares because the majority use travel cards. Travel card users such as regular commuters and students will be hit by inflation rate fare rises in the New Year.

'This is 'vote now, pay later' politics. Londoners have had 3 years of sky high fares yet 6 months before an election, the Mayor magically finds the cash to put some travelers out of their misery - for now. With a huge hole blown in TfL finances by the Metronet crash, expect massive fare hikes for everyone as soon as the May 2008 election is out of the way. It's a cheap trick and Londoners should not fall for it." ENDS

Notes to the Editors

1. Latest TfL board papers show that on Tubes, the average use of Oyster PAYG is 25.8% and cash fare use is 3.8%. For surface transport, 14.4% of all bus journeys are made with Oyster PAYG and 2.1% are cash fares. Therefore, 70% of Tube users and 83% of bus users will not benefit from the freeze in fares from 2008.

See Page 63

http://www.tfl.gov.uk/assets/downloads/corporate/Board_papers_October_2007.pdf

Operating Income

11.6 TfL operating income was £8 million lower than budget in of quarter one, primarily due to lower than budget bus network income, as well as reduced income from the Congestion Charging scheme and the contract for commercial advertising on the Underground network. This variance was offset to some extent by higher Underground fare income. For the full year, TfL operating income is forecast to be £16 million below budget.

11.7 In Surface Transport, Bus Network fare income was £5 million below budget in the first quarter due to a faster than anticipated decrease in the use of Bus Passes and cash. 2.1 per cent of passengers now use cash fares, compared to 5.0 per cent a year ago. Oyster pay as you go journeys comprised 14.4 per cent of all bus journeys, compared to 9.3 per cent in 2006/07. Congestion charging income was £2 million below budget, principally due to the continuing trend of fewer standard congestion charge payments following the introduction of the Western Extension Zone, however this was partially offset by increased Congestion Charging enforcement income. TPED (Transport Policing and Enforcement Directorate) income was £2 million lower than budget due to fewer than expected bus lane enforcement penalties issued. Full year Surface Transport fare income is forecast to be £28 million lower than budget largely due to the impact of the bus fare decrease (applicable from 30 September 2007) and lower than anticipated fare increases (due in January 2008).

11.8 In quarter one, Underground fare income exceeded budget by £8 million, reflecting the 8 per cent year-on-year growth in passenger demand. At the end of quarter one, 3.8 per cent of Underground journeys were cash fares, compared to 6.4 per cent in 2006/07 and Oyster single fares comprised 25.8% of all Underground journeys. As a result of the increasing levels of patronage, the year end forecast is £33 million higher than budget.