Re: V/Line Pass Fires the Boss!

[lbrown2@bigpond.com (Brown Family)]

On Wed, 20 Dec 2000 17:35:34 +1100, "John Kerley"
<deaftech@ozemail.com.au> wrote:

>None of the private passenger operators in Victoria make a "profit" in the
>normal sense - they are all heavily subsidised by the taxpayer which enables
>them to declare a profit to their shareholders.  WCR have been particularly
>skillful in working the system.  For example they are reimbursed for the
>full fare, less a handling charge, when a concession ticket is issued.  Thus
>encouraging pensioners to use their annual freebie to go to Warrnambool to
>watch the whales or experience a steam train like when they were young,
>costs the OAP nothing, but WCR reap the benefit.
>
Hoyts, the operator of the Shepparton service, must also be just as
skillful since they are subsidised to the same degree as WCR. 

>The fact that WCR is run by enthusiasts who care about people travelling by
>rail and not merely in making a profit, also helps and probably explains why
>they appear to be more successful in the privatised railway market than
>V/Line.
>
This is where WCR is really skillful. They have developed innovative
services that appeal to the public. 

In comparison, Hoyts haven't done much at all. The frequency of their
services have not increased since they got the contract and they have
not developed their existing services to the same degree as WCR. Both
have increased patronage on their respective lines from the government
run services days.

>One hopes that they keep their franchise in the next round.

Agreed. The option of substituting bus services for rail is worse,
since the government pays bus operators considerably more in subsidies
than rail operators

Les Brown