Passenger Rail Privatisation

["Edward Slee" <ews3@ozemail.com.au>]

There have been a few threads recently regarding passenger rail
privatisation, generally suggesting that privatisation is not possible
because the fares would go up dramatically etc. when the government subsidy
is removed.  This is not generally the case in rail privatisations.
Instead, the government pays a rail subsidy to the private operator to a
schedule agreed prior to the privatisation.  Usually the subsidy diminishes
over time.

This has the following advantages:
1) Government can budget accurately for future years
2) The value of the Community Service provided by the government is clearly
defined and accounted
3) Certainty of subsidy income for the private rail operator

Privatisation creates an environment in which the rail operator can focus
more effectively on increasing patronage and revenue by meeting customer
needs.  Political interference is presumably reduced.  I have travelled the
length and breadth of the privatised NZ Rail system (Tranz Rail) over the
last two years and it was a great experience - they are customer focussed,
rather than operationally focussed.

As a taxpayer and rail user, I would like to see ALL of Australia's rail
systems privatised under this model. I'm probably putting the cat among the
pigeons with this post, but I strongly believe that privatisation is in the
best interests of the broader community.

Regards
Ed