Re: Passenger Rail Privatisation

["Darren Yates" <dyates@pnc.com.au>]

Problem is that the private sector isn't going to have the capital funds to
maintain and keep rail up to scratch.
Sure the government hasn't done all that well in that department but at
least we can vote in a new government.
Once private sector control begins, you forget having any say in anything...

Edward Slee wrote in message
<77e7bc$93p$1@reader1.reader.news.ozemail.net>...
>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
>
>