Re: [Vic] Age: Train fare pledge dumped

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

On Wed, 03 Jan 2001 23:23:48 GMT, "Daniel Bowen"
<dbowen@custard.REMOVE.net.au> wrote:

>The private operator of Victoria's country rail network has defied a
>government guarantee on ticket prices by increasing some fares by 20 per
>cent.
>http://www.theage.com.au/news/2001/01/04/FFXLXEGVHHC.html
>
>
>
>Daniel
>--
>Daniel Bowen, Melbourne, Australia
>dbowen@custard.REMOVE.net.au
>http://www.danielbowen.com/
>
>
Is anyone actually surprised at this.
Privatization means that prices must go up,especially when the service
that is privatized was formerly losing money.
Vline passenger when it was Govt operated was generating in fare
revenue of 6.5 c/per net pass km ,and had operating costs of 33.7
c/per net pass km, ie costs 5 times the revenue.
(Source BTCE Analysis of the Rail Deficit Table 40).
Whilst Govt rail operators can operate continuously and make
losses,the private sector cant.
It has to at least break even.
And theres no point in blaming the Private operator.
The problem is privatization of the service.

If the Govt is unhappy about the fares rising,it is fully free to
subsidise the fares to keep them constant.
Cant somehow see this happening though.

MD



MD