WCR - the costs

Neil Waller (nwaller@denr.sa.gov.au)
Wed, 25 Jun 1997 13:38:53 +0930

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.

-- 
Neil Waller	(nwaller@denr.sa.gov.au)
Department of Environment and Natural Resources, South Australia
Telephone:	Oz: (08) 8204 9218; International: (618) 8204 9218
Mail:		GPO Box 1047, ADELAIDE 5001     Australia


Unless explicitly attributed, the opinions expressed are personal and
not those of DENR or the South Australian Government.