The fares on the St Ives Bay Line were regulated, however under Community Rail (and the predecessor scheme, used on the St Ives Bay Line), derogation of fare regulation on certain routes are allowed. This is nothing to do with policies at privatisation but actually policies implemented by the Labour Government and backed up by the local authority. So if you want someone to blame - blame the Government for allowing fares deregulation (Labour) and whoever was in charge of Cornwall County Council at the time for supporting it.
If the fares had been ADEQUATELY protected at the time of privatisation then this would not have happened, so ultimately the method of privatisation was to blame.
However the question was "He sold me that cheaper fare, but only because I had asked for it; he wasn't supposed to volunteer that information. Can someone explain how we got into this particular situation?" and I answered it. It IS the way privatisation was implemented that is to blame for "allowing us to get into this particular situation" where the guard is "not supposed to volunteer that information" that a fare is cheaper for a longer journey.
The St Ives branch is just one of MANY flows where it is cheaper for a longer journey, and the fact that the guards / ticket clerks cannot advise passengers of this fact is a result of the method of privatisation.
Labour could have re-nationalised, or they could have proposed changes to the privatised railway, they could have nipped the daft fares in the bud, but they didn't. So they are not totally blameless. But the creators of the LUDICROUS ticketing system that we have are the Tories!
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It's 9am and I am at Wolverhampton and I ask for a return ticket to Manchester. I am asked for £53, and pay it. The person in the queue next to me asks for Huddersfield, changing at Manchester and is asked to pay £34.70. I ask the clerk why he did not advise me of that. He says he is not allowed to offer it, but if I ask I can have it, but if I want to change it now it's a £10 admin fee so I'd still be paying £44.70. Can the Tory supporters here find some way to blame Labour for that?
I am at York and want to use the 8:49 service to Doncaster, returning tomorrow. I am asked for £19.30. I think that's a bit steep so ask for Sheffield, and state I will be getting off at Doncaster anyway, and I am told that it's only £18.80. I ask why I wasn't told that, I am told that I have to ask for it, I cannot be offered it. How did this situation come about? Come on Tories, do give an honest answer!!
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Two people board a train at Poppleton going to Bramley and ask to return the next day. They are told singles are £11 each way but if they buy to New Pudsey it's only £14.30 return, so they buy that and thank the guard. An ATOC mystery shopper overhears the conversation, reports the guard who is then disciplined. The guard then never gives such advice again and customers are then paying more than they should. Who is to blame for these rules? That's right, the Tories.
I could give many more examples. The fact is the ticketing rules are a farce and the Tories did implement them at the time of privitisation.