Re: National Rail Corp

[mauried@commslab.gov.au (Maurie Daly)]

In article <7rdhie$c9f$1@the-fly.zip.com.au> "Andrew Honan" <ahonan@zipworld.com.au> writes:
>From: "Andrew Honan" <ahonan@zipworld.com.au>
>Subject: Re: National Rail Corp
>Date: Sat, 11 Sep 1999 22:25:30 +1000

>The sad thing is that there MUST be a different scenario. The major problem
>is NSW. They need to get on board and it must come from Bod Carr and Carl
>Scully as well as some purpose for the RAC. The ARTC must run the interstate
>tracks.
>Andrew Honan


The real problem directly isnt Carr and Scully or indeed any of the State 
Transport Ministers.
Ministers in most cases simply do what they are advised by their Departments.
Its only is rare cases where a Minister defies his department, (a courageous 
decision in Sir Humphreys case.)
The real culprits are the Rail bureaucrats in the RAC and DOT who have a 
vested interest in preserving the status quo at all costs.
The other culprits are the State Treasury who see reduced revenues as a 
result of handing over a State Asset to a Federal body.
In the case of NSW , the State derives large dividends from Freightcorp and 
RAC thru the charging of monopoly rents for the transport of coal.
The PC in its latest investigation of the black coal industry, highlights rail 
charges as one of the most significant and major problems to be addressed.
As an example in the Hunter Valley coal freight rates are set at approx 5c/ntk,
(depends a bit on which mine the coal is coming from) .
Compare this with NRCs rates for general freight of 2.5 c/ntk and Freightcorps 
rate for hauling coal in SA from Leight Creek to Pt Augusta of 1c /ntk.
This is the same rate as is achieved by the Pilbara Iron Ore Railways and is a 
very good result.
The very high Hunter Valley charges are needed to pay the State Govt dividends
and to pay RACs absurd charges.
Handing over the National Network to ARTC (presuming we could identify exactly 
what the National Network was) would mean at least losing revenue from all the 
coal trains to Stratford, and a major loss of revenue from NRCs interstate 
trains.
This is the bind , State Govts dont like doing anything that loses them 
revenue , even if the said reform is for the National good.
I dont even beleive that with a Liberal Govt in NSW things would be any 
differant.
A High Court challenge using S92 provision which prohibits the States from 
taxing interstate freight is about the only possible solution.

MD