Re: WCR - the costsand maybe a few new ones!

Rodney T. Young (berlina@bigpond.com)
26 Jun 97 15:30:44 GMT

Neil Waller <nwaller@denr.sa.gov.au> wrote in article
<33B099D5.22C8@denr.sa.gov.au>...
> As I suspected when this was being discussed a few weeks ago the figures
> must be available somewhere...
>
> I am summarising the Victorian Auditor General's report on the Melbourne
> Warnnambool contract (and you can find it on the web at
> http://yarra.vicnet.net.au/~vicaud1/mp97/mp97infr.htm)
>
> Essentially WCR has been directly subsidised from the inception of
> the service to Feb. 1997 to the tune of $3.5 million mostly being
> for the cost of track access which is $1.5 million per year.
>
> The reason for this is that the track access cost was initially
> set at $500000 per annum or there abouts and was subsequently
> raised to $1.5 million.
>
> There is also an indirect subsidy of $200000 per annum by way of
> on-costs (overheads) absorbed by the PTC.
>
> Included in the direct subsidies are two payments: $52000 p/a for
> the costs of the ticketing system and $122000 p/a to cover the costs
> a fuel levy increase imposed by the Commonwealth Government.
>
> The latter payment is out of the goodness of their hearts payment
> by the PTC - there is no obligation for it.
>
> I hope this clears things up.

Seems that changes are upon us again.
At Union Meeting last few days a document was circulated, from V/Line
Freight to Wally Rail telling them that crews would not be available from
that source in the near future.
This of course could mean that the soon to be started V/Line Passenger
Group may take on this responsibility, or retired Drivers may be employed
by this August body to continue the service.
Now, one of the things that has stopped WallyRail from employing their own
drivers, has been the high cost of accreditation. I do believe they tried
to get one retired Driver through the training center a few years ago, and
we all guessed that the price must have been too high.
If the new Corporation was able to get these fees paid, even if the
Government subsidised Wally, then perhaps we are not so far away from
profitability anyway..........methinks it be very interesting times ahead

Rod