Maria Eagle on rail fares, subsidies and franchises

2 July 2012 Last updated at 07:27 ET Help

Labour's shadow transport secretary said rail passengers were being "clobbered with the highest fares in Europe" while the government gave the industry £4bn a year in subsidies.

Maria Eagle said her party had made no decision on renationalisation to a British Rail-style era, but said £1.2bn a year was being lost in the current "fragmentation" in the franchised rail system.

She debated the future of the rail industry and services with economist Will Hutton after they watched a TV advert from the 1980s showing British Rail trying to improve its image.

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