Privatisation
COUNTRY RAIL SALE NO CASH WINDFALL
by Sandra McKay,
transport reporter
The State Government may not have saved a cent from privatising two
country rail lines and could repeat its mistakes when it sells the entire
transport network next year, the auditor-general has warned.
In a critical report into the contracting out of the melbourne to
warnambool passenger service, Mr. Baragwanath said their was no proof that
taxpayers had saved the promised $3 million a year.
His audit showed that West Coast Railways, which took over the service in
September 1993, recieved (up until February) $20.3 million in Government
Subsidies, which was on a par with Public Transport Corporation, which had
run the line at a $5 million dollar annual loss.
Mr. Baragwanath critisised the Government for not reviewing the
performance of West Coast, or the outher private rail operator, Hoy's,
which runs the Melbourne to Cobram service.
"Accordingly, their is a possibility that the experiences gained from
these arrangements may not be factored into future privatisation
proposals," he said.
His audit also revealed a number of delays and hidden subsidies. It found:
*The department sent an interest-free $300,000 advance to West Coast in
1995 to overcome short term liquidity problems.
*The Government failed to strike a service agreement until a year after
West Coast took over the service, and took * three and-a-half years to
agree on support services "which had the potential to disadvantage the PTC
and
ultimately the state in the event that disputes arose".
* The State is concidering compensating West Coast $1.2 million dollars
for its cost in gaining Safety
Accreditation.
*Although under no contractual obligation, the state reimbursed
thecompany $122,000 to offset federal increase
in the cost of diesal. [fuel]Maintenance-related
reimbursements have cost a further $1 million a year, instead of
the expected $512.000 a year.
* West Coast is "at times" failing to forward passenger revenue in the
fourteen day time frame.
* The service has been 100% reliable, but West coast has never met its
punctuality target of 95%. Its best is
89.5%, but the Government has never imposed penalties
because most delays were due to the poor condition of
the track.
The Transport Minister Mr. Robin Cooper, did not dispute the Auditor
Generals findings, but said he was unfair in singling out West Coast.
"My major concern with the report is that it singles out West Coast as if
its been given special treatment, and it hasn't.
They have been treated exactly the same as the PTC and Hoy's."
The opposition transport spokesman, Mr Peter Batchelor, called on the
Government to abandon the privatisation of the PTC.
"If they cant get right the privatisation of a simple, long haul dedicated
rail service between Melbourne and Warrnambool, it will be a disaster when
they get their hands on the complex metropolitan network."
Mr. Cooper said he was confident of meeting the Governments accelerated
target to contract out all train, tram and remaining bus services by
Christmas 1998.
He said the audit identified some "learning experiences" but that
privatisation had been good value for Victorians.
"This report shows that their are lessons to be learnt and West Coast have
provided us with a lot of very good information for use as we progress
further down the privatisation track", he told the Age.
West Coast's director Gary McDonald, said the $3 million in savings had
been delivered and his company had been treated in the same way as outher
passenger rail operators.
THIS IS THE END OF THE SPECIL QUOTE TAKEN WORD FOR WORD FROM THE MELBOURNE
AGE.
Now we already pay more than almost any outher Australian for Power. Gas
and water, after being promised privatisation would bring the price down.
Our V-Line services are amongst the most expensive in Australia, Bet you
they get even dearer, any takers?
Mr Baragwanath is not very popular with the Kennett Gestapo and is on thin
ice......but he has no reason to lie. .. His job is to look after Mr and
Mrs Victoria's Interest. To ensure honest financial dealings and to blow
the whistle on the Government if
it so deserves....... He is blowing the whistle and the rorts are serious!
Who do you believe. The Government who is doing the rorting , the Company
that is benifiting from trhe rorting. . .. Or the Policeman who lays the
charge of rorting.... Now come on Boys and Girls, surely you are not that
dumb.
Sincerely
Rod Young.