Rail passengers face more years of above-inflation fare rises to subsidise privatisation, which has doubled the cost of running the railways.

Rail fares will rise at more than the rate of inflation until at least 2019.

If peak fares were not already high enough, the Government is also now considering introducing a “high-peak” fare, Transport Secretary Justine Greening told the House of Commons today, 8 March 2012.

However, only 14 per cent of people believe that increasing fares on the busiest trains at a higher rate than other services is fair, according to an online poll by the Campaign for Better Transport.

The Government's ideas on how to save £3.5 billion are published in a command paper on rail reform, in response to Sir Roy McNulty’s report on rail costs, which he said were 30% higher than were other European countries.

The Government is hoping that longer franchises could save money by giving operators an incentive to invest. Until now, and with the exception of Chiltern Railways, few operators have shown any enthusiasm to invest.

Oyster-style smart cards which have improved life for most people in London, will be extended to the rest of England and Wales. Scotland has its own plans for smart ticketing.

Ms Greening said she would no longer allow hard-pressed farepayers and taxpayers to be lumbered with an unnecessary burden and said there would be a “roadmap” for action!

Critics say the fragmented condition of the industry, created by privatisation, is to blame for the extra costs.

The Government plan is a recipe for exploitation, with the train operators given the green light to rob passengers blind, said Bob Crow of the RMT union.

“Axing ticket offices and guards will turn stations and trains into a criminals paradise,” he said.

“This plan also sets us on course for a return to the dark and dangerous days of Railtrack that led to the disasters of Hatfield and Potters Bar.

“The way is being paved for private companies to run localised, mini-Railtrack concessions in the name of greed and profit.

“The private train operators want longer franchises and the right to jack up fares and to seize control of infrastructure so that they can continue to rack up billions of pounds of profits and dividends while charging the highest fares in Europe to travel on the worst services.”

He said 12,000 jobs were now at risk.

TSSA union leader Manuel Cortes said ministers were putting the interests of the private train companies ahead of millions of passengers.

The Government is also considering devolving power over the national rail network to regional transport authorities.

Ms Greening is calling for closer collaboration between Network Rail and the train operating companies.

However, the Rail Freight Group is worried that experiments in vertical integration, giving passenger operators more control of the network, could make life difficult for freight operators.