Aug182017

Press release: CMA protects London–Exeter passengers with fare cap

HM Government

Earlier this year, the Department for Transport awarded the South Western rail franchise to FirstGroup and MTR. FirstGroup already operates Great Western Railway (GWR), which runs the only other train service between London and Exeter.

An initial merger investigation by the Competition and Markets Authority (CMA) raised concerns this could reduce competition on the London–Exeter route, leading to higher fares or worse service for passengers.

In July the CMA announced it would consider an offer (‘undertakings’) proposed by FirstGroup and MTR aimed at addressing these concerns.

The offer made by the 2 companies involves a price cap on unregulated fares between London and Exeter on both South Western and GWR services. Ticket prices on the route will be linked to those on a number of other comparable services to ensure they are kept in line with the market.

The companies have also offered to maintain the availability of cheaper advance fares on both services, again by linking them with similar routes.

The CMA consulted publicly on the proposals, which it has now accepted.

FirstGroup and MTR will be required to submit regular reports to the CMA to show they are complying with the agreement.

The acceptance of these proposals by the CMA means that the award of the franchise will go ahead without the deal being referred for a more in-depth ‘phase 2’ investigation.

All other information relating to this investigation can be found on the case page. The final undertakings will be published shortly.

Rachel Merelie, Executive Director of Markets and Mergers, said:

We examined the proposals very thoroughly during the consultation period to ensure that they addressed all of our concerns. We believe that they will protect passengers from fares being pushed up due to lack of competition on this key route between London and Exeter.

Notes for editors

  1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.

  2. Media enquiries to the CMA should be directed to rebecca.cassar@cma.gsi.gov.uk or 020 3738 6633

  3. For CMA updates, follow us on Twitter @CMAgovuk, Facebook, Flickr and LinkedIn.

Aug182017

News story: CMA accepts Heineken/Punch pub sales

HM Government

The CMA has accepted proposals by Heineken to resolve concerns over its proposed purchase of Punch Taverns.

In June, the Competition and Markets Authority (CMA) said that Heineken’s proposed purchase of part of the Punch Taverns estate could reduce competition in 33 local areas across Great Britain. Before the merger was referred for a further in-depth investigation, the companies were given the opportunity to offer proposals to address these concerns.

Heineken has offered to sell pubs in each of the affected areas to preserve competition and ensure customers in these locations do not lose out.

Before reaching a final decision, the CMA carefully assessed and consulted publicly on these proposed undertakings. The CMA is satisfied that its concerns have been addressed and has therefore decided that the merger will not be referred for an in-depth phase 2 investigation.

All information relating to this investigation can be found on the case page.

Aug182017

Beijing 8th cheapest city in the world for cab fare

East Asia

Beijing has been ranked eighth in an international taxi price index issued recently by a British company for its cab fare – 2.3 yuan ($0.34) per kilometer.

The 2017 Taxi Price Index, issued by Carspring, an online seller of used cars, shows taxi fares in 80 tourist cities in around the world based on three metrics: The cost per kilometer, the cost of waiting time, and the fare from the airport to the city center.

For the cost per kilometer, Cairo took the top spot at $0.10, followed by Bangkok ($0.18), Moscow ($0.27), Mexico City ($0.28), Jakarta ($0.30), Bangalore ($0.30), Mumbai (0.32), Beijing ($0.34), Bucharest ($0.35) and Kuala Lumpur ($0.36).

The most expensive city for cab fare is Zurich, Switzerland, at $5.19 per kilometer.

For a typical 3 kilometer ride, Beijing is ranked the 15th cheapest with a fare of $3.08, and Cairo retains its top position as the cheapest city with $0.55. Zurich is the most expensive with $25.25.

Aug182017

Smart unmanned capsule hotel opens in Chongqing

East Asia

A smart capsule hotel operated by a WeChat account recently opened at Cybernaut Makerspace in Chongqing’s Liangjiang New Area.

A look at a capsule room in an unmanned hotel in Chongqing. [Photo by Tan Yingzi/chinadaily.com.cn]

A look at a capsule room in an unmanned hotel in Chongqing. [Photo by Tan Yingzi/chinadaily.com.cn]

The hotel has four rooms shaped like a white space capsule and each room can accommodate one person.

The guests can register on the hotel’s WeChat account and can make reservations, check in and check out by themselves using their mobile phones. So there’s no hotel staff.

The hotel aims to provide a place for workers to rest, especially during the lunch break. It charges 5 yuan ($75 cents) per 30 minutes and 6 yuan during the lunch break.

The owner of the hotel plans to install about 200 rooms by the end of the year in Liangjiang New Area Internet Industry Park.

A capsule hotel, also known as a pod hotel, is a type of property first developed in Japan that features a large number of small “rooms” (capsules). The first capsule hotel in the world was the Capsule Inn Osaka in 1979.

In 2012, China opened its first capsule hotel in Xi’an, Shaanxi province.

Aug182017

Preserving the Lodge and Kirribilli House

Australia

The Lodge and Kirribilli House are two significant national buildings that have housed Prime Ministers and hold the stories and memories of leaders that have steered this nation through war and prosperity.

I am establishing an advisory committee to guide the Australian Government on how to conserve and improve these institutions for our future generations.

This decision has been taken in consultation with the Leader of the Opposition, the Hon. Bill Shorten MP and will utilise the experience gained from The Lodge refurbishment project.

As the Prime Minister’s official residences, it is important that these nationally significant heritage properties are well maintained and are fit for purpose.

Members of the Committee have been selected on their expertise or experience in a number of areas including architecture, planning, design and heritage.

I am pleased to advise that Mr David O’Donnell has accepted my invitation to chair the Committee.

David is a lawyer with over 40 years’ experience in environmental and planning law, large infrastructure projects, heritage law and commercial property.

The other members of the Committee are Michael Bryce AM AE, Angela Marshall, Malcolm Middleton OAM, Susan Rothwell, Peter Watts AM and the Australian Institute of Architects.

Information on members of the Committee are attached.

David O’Donnell (Chair): a lawyer with over 40 years’ experience in environmental and planning law, large infrastructure projects, heritage law and commercial property.

Michael Bryce AM AE: an architect and designer acknowledged for his distinguished work in graphic, urban and environmental design.

Angela Marshall: an interior designer who is a member and former Councillor of the Australiana Fund.

Malcolm Middleton OAM: the Queensland Government Architect who has done significant work with historical buildings and urban design and masterplanning.

Susan Rothwell: an architect and horticulturalist.

Peter Watts AM: an architect, landscape architect and founding Director of the Historic Houses Trust NSW.