Re: Alice-Darwin rail link investor pulls out

[mauried@tpg.com.au (Maurie Daly)]

On Fri, 26 Jan 2001 12:59:21 +1100, "Andrew Honan"
<ahonan@zipworld.com.au> wrote:

>Yes,
>but I heard that the shortfall is $750M and that Feds are talking to SA and
>NT.
>

Sounds likely,given the many attempts to raise finance up until now
have failed.
One would think that if the consortium had even raised a fraction of
the total , ie the $700M they could have made a start on the project.
Its not necessary to raise all the money at the start.

>I wonder if the feds bail this project out how it fits with a so called
>national land transport policy.
>How will they justify spending millions on AP to Darwin as well as an inland
>route?

The Feds , whether they like it or not , are legally required to build
this line sometime.
Its all part of the agreement with the state of SA which created the
NT.
Whilst they can keep deferring the project indefinately,I dont beleive
that they can publickly abandon the project.
>
>On another note, I was rereading the Feds response to the various rail
>enquires and noting that state based jurisdictions need to work with ARTC by
>mid 2001 otherwise the feds will legislate. Meanwhile NSW is grappling with
>its own internal rail reform.
>I just wonder how it will all be pulled together in some logigal and
>efficient manner??

This will be the biggest can of worms yet to be tackled.
I am doubtful that the feds can legislate to do anything like they
suggest without the threat of High Court challenges.
Its more likley that economic blackmail will be used ,ie states that
dont toe the line will suddenly find that federal funds will start to
dry up very quckly.

MD