Economy minister announces rail cutbacks

Economy Minister János Kóka yesterday unveiled the government's decision to close railway lines, raise ticket prices for MÁV trains and Volán buses, and modify subsidies for students and the physically disabled. Under the measures, to come into force in February, the government will shut down 14 railway passenger routes, affecting 700km of track, Kóka said.

Plans to close further branch lines are still being considered. In areas where rail transport is shut down, Volán, the state-owned inter-city bus company, will take over, and its timetables will be harmonised with those of MÁV. The government expects to save Ft 4 billion from the closure of lines that had low passenger traffic.

The cabinet has given the approval to cut 1,500 jobs at MÁV's Budapest headquarters, in addition to this year's 1,000 lay-offs, Kóka said. The number of departments and executive staff will also be reduced.

MÁV and Volán ticket prices will be raised in two stages next year, in January and in May. Passengers can expect to pay 16% more when travelling via MÁV, while the new prices set by Volán will be 6% higher from January. Prices are expected to rise in May by 17% at MÁV and 4% at Volán.

The state railway company will not change preferential rates for pensioners, but prices for students will rise due to a cut in subsidies. The state will assume 90% of the costs for passengers with severe physical disabilities and 50% for those with impaired hearing.

The above story is just one of more than two dozen published today by Hungary Around the Clock, the most comprehensive source of daily English-language news about Hungary. For a free trial of HATC, click here. Hungarian news sources include Népszabadság; Magyar Hírlap; Világgazdaság; Napi Gazdaság; Magyar Nemzet; Népszava; Kossuth Rádió news and Hungarian television's nightly news broadcast.

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