Background Notes

These are detailed briefing notes on the issues behind the campaing.

The Federal Government has put forward a proposal that threatens rail safety in NSW, and the jobs of up to 1,500 Rail Infrastructure Corporation (RIC) workers in regional and rural areas while the NSW taxpayer carries any financial risks associated with the ARTC proposal. ARTC's proposal will see the removal of jobs and the withdrawal of much needed income from many local communities. This leaflet provides information on what you can do to help maintain rail safety in NSW, save jobs, and support regional and rural communities.

What is ARTC?
The Australian Rail Track Corporation LTD (ARTC) was created in 1997 after the Commonwealth and State Governments created a "one stop shop" for all rail operators accessing the national interstate rail network.
ARTC controls most of the track in South Australia, Western Australia and Victoria. ARTC has started negotiations with the NSW and Queensland State Governments. ARTC want to lease and operate the freight lines in NSW for 60 years at a peppercorn rent.
ARTC's promise to sink $870 million into infrastructure development in the first 5 years would allow the state government to relieve itself of its obligation to commit $130 million per year in community service obligations to the railways.
If ARTC's proposal is accepted they will almost have complete control of the national interstate standard gauge rail network.
THE PROBLEMS WITH ARTC'S PROPOSAL
1. Loss of Jobs and Job Security
The ARTC proposal will lead to an up front loss of 1,500 rail jobs in mainly rural and regional areas of NSW.
· Only 800 employees are being offered a 3-year job guarantee without a guarantee of conditions after this period. The remainder will be made redundant.
· There is no guarantee of job security for these 800 employees after the 3 year "guarantee" period
2. Safety
i) The ARTC proposal will result in multiple track managers, which creates an environment of complicated interfaces between different organisations managing various sections of the network. As a result of ARTC's proposal, various sections of NSW track will have different systems, standards and procedures, similar to the British rail experience. This would compromise the safety of the NSW rail system.
Separate safety rules will ultimately compromise NSW track safety due to a loss of network coherence
ii) As a result of the ARTC proposal, there will be separate Safeworking Rulebooks governing different sections of track. This means there will be 2 rulebooks in force on the NSW rail network. This makes maintaining safety even more difficult and ultimately compromises the safety of the whole track system.
ATRC's proposal complicates safety practices and fails to address fundamental issues that will make the NSW rail system safe.
iii) ARTC's maintenance budget for the first 3 years of the lease is far below the standard set by RIC and State Rail.
There are no guarantees ARTC will maintain the rail track at the standards established by the Rail Infrastructure Corporation (RIC).
iv) Although sections of NSW's track could be leased for 60 years, ARTC are only funding provisions for the first 5 years.
Maintenance contracts should not be awarded to the lowest bidder.
v) ARTC have stated that they intend to open up rail maintenance to outside contractors after a 3-year moratorium. The system of awarding outside contracts is known as contestability and it was abandoned in NSW following the Glenbrook Rail Disaster.
The industry should not return to a system of contestibility where track maintenance work is put up for tender to the private sector and contracts are frequently awarded to the lowest bidder.
A proliferation of contractors will result in a decrease in the skill level of maintenance staff.
vi) Lord Cullen in his report into the Ladbroke Grove Train Disaster (England) was scathing of the use of contractors in maintenance work. He found that outsourcing maintenance work seriously compromised the communication necessary for safe working.
vii) As an independent lessor, it will be extremely difficult for any government to monitor, control or compel ARTC to improve or comply with maintenance standards.
The State Government will lose control over its own Transport Policy, as the rail network becomes increasingly dependent on ARTC. This will make it increasingly difficult for the State Government to control maintenance, safety and costs.
3. Impact on Rural and Regional Communities
· Cherry picking of the most profitable lines, such as the coal lines in the Hunter Valley, which will lead to the downgrading and closure of less profitable regional lines.
· The loss of 1,500 jobs across the rail industry, especially in regional and rural areas, will exacerbate problems already being experienced by workers in those communities.
4. The Cost to the NSW Public
Under the proposal, ARTC be provided with profitable sections of NSW rail track for 60 years under a peppercorn leasing arrangement. There is no on-going commitment to capital investment beyond the first 5 years.
Despite this, ARTC wants the NSW Government to:
i) Maintain responsibility for all staffing, industrial and redundancy issues;
ii) Pay for an upgrade to the Sydney-Newcastle freight corridor.
iii) Fund the upgrading of the maintenance infrastructure before they lease it and then provide them with plant and equipment at no charge; and
iv) Give ARTC control over the whole rail asset including its potential as an easement for natural gas and optical fibre telecommunications thus denying NSW taxpayers a potentially lucrative investment.

The NSW taxpayer and Government end up with all the financial risk while ARTC carries no risk and makes all the profits.

WHAT CAN YOU DO?
1. Hold workshop meetings and explain what the ARTC proposal means.
2. Pass a resolution condemning the proposal and send this to:
The ARTC Campaign
Labor Council of NSW
Fax: (02) 9261 3505
Level 10, 377 Sussex St, Sydney 2000
3. Make an appointment to see your local State Member of Parliament. Tell them what the ARTC proposal will mean for your local community. (See list in kit)
4. Write a letter to your local paper; call your local radio station. Tell them about what ARTC will mean for your community.

Download more info:
Copy of Speakers' Notes

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