Pressure was piled on Tory Transport Secretary Patrick McLoughlin to devolve rail powers to Wales yesterday as privateer Arriva put price rises under the Christmas tree for passengers.

Plaid Cymru revealed Mr McLoughlin has refused to reply to the Welsh government over the future of the Wales and Borders franchise.

Correspondence obtained under the Freedom of Information Act showed the Tory has not responded since August.

The discovery came as Arriva announced single trickets for travel on its clapped-out rolling stock will rise by an inflation-busting 5 per cent.

An anytime single fare on Arriva services between Cardiff and Swansea will rise from £9.90 to £10.30 and prices for a longer journey between the capital and Wrexham will rise from £54.90 to £57.60.

Arriva's latest fare increase is likely to fuel support for public ownership of line when the current franchise deal ends in 2018.

The influential Welsh Assembly business and enterprise committee demanded last month the devolution of power to decide the future
of services.

But Plaid leader Leanne Wood warned Mr McLoughlin's "disappointing" stalling tactics could deal a blow to public ownership ambitions.

She said: "Plaid Cymru wants to see a not-for-dividend company established to run the franchise after the current one ends in 2018.

"This is something that the Welsh government needs to look be working towards now.

"It is important that the rail franchise serves the people of the whole of Wales and not just the interests of shareholders."

A Department for Transport spokesman insisted that "talks are ongoing on the potential devolution of the Wales and Border rail franchise when it is renewed in 2018."

The Welsh government did not want to comment on negotiations with Mr McLaughlin.

However Transport Minister Edwina Hart announced she was lowering the cap on regulated rail fares in Wales, bringing them into line with rises in England.