Re: Judge doubts rail reforms

[Bruce Greening <bgreeni@attglobal.net>]

Maurie Daly wrote:

> On Thu, 14 Dec 2000 17:22:12 +1100, Bruce Greening
> <bgreeni@attglobal.net> wrote:
>
> >
> >
> >Kevin Sewell wrote:
> >
> >> Who said judges were slow on the uptake ...
> >>
> >> David Bromage <dbromage@fang.omni.com.au> wrote in message
> >> vczZ5.17$Le6.747@news0.optus.net.au">news:vczZ5.17$Le6.747@news0.optus.net.au...
> >> > The head of the Glenbrook inquiry, Acting Justice Peter McInerney, fears
> >> > that when the safe working rules are rewritten for the rail industry they
> >> > will be as bad as the old ones.
> >> >
> >> > http://www.smh.com.au/news/0012/13/national/national12.html
> >
> >Well he has certainly been slow in this case. The government gagged the CEO's
> >and so the only story he got on structure was the government line, which is a
> >disaster for the industry. Commercialism will be a dirty word and access
> >charges will go up and up. The trucking industry will be laughing.
> >
> >Its back to the bad old days.
> >
> >--
> >Bruce L. Greening
> >bgreeni@ibm.net
> >
> >
>
> Bruce , I wonder whether you could comment in whether the change from
> RAC being a Govt owned Corporation to now being a Rail Infrastructure
> Austhority means that the Authority doesnt have to operate with a
> profit motive and whether it is still required to pay annual dividends
> to the State Govt.
> If this is the case , there should be some scope for a reduction in
> track access charges.
>
> MD

The New corporation, Rail Infrastructure Corp. will be a Govt. owned corp, not an
authority as recommended by the commissioner. It however has been set up
differently from other GOC in that the minister can issues instructions that
relate to expenditure, with the boards only appeal to the treasurer. I have not
got a copy of the legislation in front of me, but basically the aims are safety
and reliability, with commercialism second. Interestingly for the rail freight
industry passenger services are to have absolute priority. Responsibilities such
as regional development, environment, etc. in the old legislation are also
downgraded in importance.

The structure gives the minister almost as much power as in an authority.

My main concern that there will be no incentive to drive down track maintenance
costs, and to pass this onto freight operators.

--
Bruce L. Greening
bgreeni@ibm.net