Future of Queensland Rail looks bleak, says Beattie

[dbromage@fang.omni.com.au (David Bromage)]

Future of Queensland Rail looks bleak, says Beattie
   BRISBANE, Aug 23 AAP - The future of Queensland Rail appeared 
bleak today after the federal government refused to let the 
organisation tender for interstate contracts.
   Premier Peter Beattie said the federal government had sentenced 
Queensland Rail to a "death of 1000 cuts" with its refusal to allow 
the organisation to win contracts Australia-wide.
   Mr Beattie revealed Finance Minister John Fahey had written to 
him stating the federal government's opinion that governments 
should not be involved in rail freight.
   "We wanted to have Queensland Rail tender for some work 
interstate and they knocked it back," he told a news conference.
   "They don't believe freight rail is something we should be in."
   Mr Beattie said he believed the federal government's stance on 
Queensland Rail could eventually affect the National Competition 
payments paid to the Queensland government.
   "Basically, they've ended Queensland Rail's future activities," 
he said.
   Earlier in parliament, Mr Beattie had said his Labor government 
would not privatise Queensland Rail, promising to do all he could 
to protect the jobs of QR's 14,000 employees.
   AAP bja/sc/nm