Re: Rail Sale Games

["Tezza" <tezza2000@dingoblue.net.au>]

"Adam Dunning" <adamdunning@start.com.au> wrote in message
news:3b14da38$1@news.alphalink.com.au...
| Another article from Truck & Bus Tranportation (not Marinus this time
| though!)
|
| pg 9, Jully 2001 issue (current)
|
| 'Rail sale games'
| A split has developed between NSW and the federal government on the sale
of
| FreightCorp and the National Rail Corporation (NR).
|
| After agreeing last year to a parallel sale of the two companies, the
| Federal Government in now being asked to sell the railways jointly -
| virtually as a asingle entity.

As recommended by the Union forced inquirey.


| That move is being strongly resisted by the federal transport department
and
| its minister, John Anderson, on the grounds that selling NR seperately
will
| maximise its sale price.
|
| "Because FreightCorp loses so much money, if we sold them together it
would
| mean that NR would be subsidising FreightCorp," a spokesman for Anderson
| said.
|
| The Federal government also believed that selling both railways to a
single
| buyer would raise questions about whether the resulting company's size
| provided it with an unfair competitive advantage.

Negated by the subsidisation?