Re: Future of Queensland Rail looks bleak, says Beattie

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

      [Department of Transport and Regional Services letterhead]

Dear Mr Bromage

I refer to your letter of 24 August 2000 to the Deputy Prime Minister and
Minister for Transport and Regional Services, the Hon John Anderson MP
concerning Queensland Rail's right to tender for freight contracts outside
of Queensland.  The Minister has asked me to thank you for your letter and
to respond on his behalf.

The Commonwealth has no arrangements in place to deny Queensland Rail the
right to tender for freight contracts outside of Queensland.  I am not
aware of any impediments to their tendering nor of any letter to Premier
Beattie denying them the right to tender.

You may be referring to press reports concerning the sale of the National
Rail Corporation (NR) which is the interstate rail freight operator owned
by the Federal, New South Wales and Victorian Governments.  Governments
have decided that publically owned bodies will not be permitted to bid for
NR. This is consistent with Commonwealth policy that private sector
ownership and competition in the provision of above rail freight services
will encourage the innovation, efficiency and improvements in customer
service required to reverse, or at least slow, the historic loss in rail
market share to road.

The Government considers its role is to provide the rail tracks for
appropriately accredited rail operaters to operate on in the same way that
it provides roads for private road freight operators.  Government
resources are better spent on upgrading the track for the benefit of all
users than on meeting the capital demands of rail operaters.

Yours sincerely

[minor bureaucrat]