Re: WCR, where are the facts????

Jim Gordon (j.gordon@bigpond.com)
5 May 97 16:02:56 GMT

Terry Flynn <terry@cclru.unsw.edu.au> wrote in article
<336dd740.15993281@nntp.unsw.edu.au>...
> Craig Haber <albatross@harnessnet.com.au> wrote:
>
> >Terry,
> >you're not grasping the idea of what I'm saying here...
> >
> >> >>So how much does the Warrnambool line now cost the PTC,
$2.999million?
> >
> >It still costs about the same to maintain the Warrnambool track.
> >
> >Under PTC control, the resources which provided the pass service (being
> >the trains, the station staff, train controllers etc) all contributed to
> >a loss making venture.
> >It was only considered a loss making venture because of the creative
accounting used by railway bean counters -any money that the line made went
straight into state coffers - only the losses were writern down, hence, a
loss making venture !.

> >Now the V/Line trains are off the run (take away their maintenance and
> >operating costs), the remaining PTC staff are still payed for by the PTC
> >- BUT, now WCR pay the PTC for those staff, hence the crews, train
> >controllers etc. are now earning the PTC revenue. Similarly, the track
> >now generates income, as WCR pay to use it.
>
> The passenger service earned revenu before the WCR privatisation. So
> what is different? The way the bean counters do their sums.
>
> >You see, these things which formerly all contributed to a loss making
> >business (ie, Warrnambool line services) are now paid for by WCR - yes,
> >the PTC don't get the passenger revenue, but by eliminating all of their
> >costs (which outweighed the revenue) either by removing the resources,
> >or by having WCR pay to use them, the line now generates significant
> >income, and hence WCR has become one of the PTC's larger customers.
> >
> >Hence the loss making asset has become a profit earning asset. No
> >propaganda there!
>
Plenty of propaganda here, if all the figures were required to be writern
down, I bet you would find out what Wally Rail did,[the hard way], that
people will travel in the warmer months to the seaside resorts, but in the
winter months, you only find people traveling as far as Geelong because of
the express running, [ by the way Craig, did anybody find those extra 50
passengers that went missing, the night of the accident?]

> The bottom line still is the Warranabool line overall all still costs
> the taxpayer money. Total revenu is less than total costs. The line is
> not running at a profit. This claim of making a profit is just fancy
> accounting, nothing else. All the improvements could have been
> achieved without privatisation.
>
> >> Union power is relatively low today due to high unemployment. If they
> >> let the WCR decrease staffing levels, then the PTC could have also
> >> achieved the same result. If you think lowering wages for railway
> >> workers is the answer, you will end up with the wost people to do the
> >> job.
> >>
> >
> >Again, you're not grasping the simply economics -
> >a) bums on seats means much greater revenue
> >b) greatly reduced overheads means much less costs.
>
> But all this can be achieved under government owenership, thus all
> revenue retained by the Government.
>
> >Increase your revenue, and decrease your costs, and your financial
> >position improves remarkably! The problem with most Australian
> >companies (and government departments) is that they're all very quick to
> >try and reduce costs (ie, sack workers), but don't try hard enough to
> >boost revenue.
> >
> >Cheers,
> >Craig.
>
> Untill road users subsidies are decreased rail will always run at a
> loss, as the fares are kept artiffically low due to the artifically
> low cost of motoring. WCR style privatisation is noting but
> idealogically driven.
>
> Terry Flynn.
>
>
>
>