NSW Railway Fat Cats

["David E. Lindstrom" <D_Lindstrom@Bigpond.com>]

Today's SMH reports:

Railway fat cats deflated

By ROBERT WAINWRIGHT, Transport Writer

 

http://www.smh.com.au/news/0007/20/pageone/pageone1.html#top

The new head of NSW railways, Mr Ron Christie, will crack down on performance bonuses paid to rail executives after revelations that more than $2.3 million - including one payment of $75,000 - has been paid over the past four years.

The payments were made to senior executives at the State Rail Authority, Rail Access Corporation and Rail Services Australia.

"On-time running has deteriorated significantly during the last financial year," Mr Christie said last night. "I have directed the boards of RAC and RSA that any bonuses paid for 1999-2000 will be determined in the light of this decline in performance."

The bonuses paid to staff of all three authorities in 1998-99 were to reward excellence but critics, including rail unions, argue that the system was run into the ground in those years, with maintenance schedules changed drastically.

Since then, on-time running has plunged to embarrassing levels and there has been a spate of equipment failures and accidents, including the Glenbrook crash in which seven people died.

The Herald has obtained these details of bonuses:

Between 1996-97 and 1998-99, $1,269,839 was paid to RAC staff. In 1998-99 alone, 157 RAC staff received $617,000 - an average of $4,000. This included $75,000 to its former chief executive, Ms Judi Stack.

Between 1997-98 and 1999-2000, $742,138 was paid to RSA staff in bonuses - including $18,000 to its chief executive, Mr Terry Ogg, who earns $265,000 a year. Six managers who each earn more than $200,000 a year were among the others eligible for bonuses.

In 1998 and 1999, $177,500 was paid to SRA staff, including $20,000 to its chief executive, Mr Simon Lane, who earns $305,000. The SRA's senior staff include at least six managers whose salaries range around $200,000.

Mr Christie said he was not targeting bonuses paid to some staff under enterprise bargaining agreements but higher payments made to senior executives.

The veto over bonus payments is the first aggressive step to co-ordinate the activities of the three rail bureaucracies since Mr Christie was appointed Co-ordinator-General of Rail.

"The boards will continue to provide advice in overseeing the operations of each agency, including the approval of performance bonuses," Mr Christie said. "However, in future I will be reviewing all approved bonuses to ensure that each is paid in line with performance."

The Opposition spokesman on transport, Mr Barry O'Farrell, described the bonuses as outrageous. "Clearly the problems we are experiencing have not cropped up overnight. Ron Christie has admitted as much, and despite that the boards have signed off on bonuses to under-performing rail chiefs and executives."

The RAC owns and maintains equipment such as tracks and signals, and the RSA manages the workforce that maintains the equipment. The SRA runs the CityRail service.

Despite recent improvements, on-time running remains below the 92 per cent target.