Rail Towns Win Jobs Reprieve

The Carr Government has moved to reassure rural communities that it has not entered a secret deal to hand over control of the state’s freight rail tracks to the Commonwealth.

On the eve of the State Election, Treasurer Michael Egan has written to rail unions promising to consider an independent report warning the deal could cost NSW half a billion dollars before he makes a final decision.

Under the proposal the Australian Rail Track Corporation would take control of NSW rural rail through a 60-year lease; paying the NSW Government peppercorn rent and undertaking to invest $872 million over the first five years.

But unions fear the Commonwealth would contract out track maintenance to increase profits, undermining safety and leading to the loss of up to 1500 rural jobs.

The report, by BIS Shrapnel, was commissioned by the Labor Council to determine whether the proposal met key public interest benchmarks.

Among the key findings

• the financial viability of the project was 'doubtful' with current costings understated by around $800 million.
  

• cost projections for track inspection, maintenance and minor works was at least a third below the estimated minimum required.
  

• the ARTC plan would lead to a substantial decline in employment, changes to manning and employment conditions, a shift from day labour to contract or sub-contracting and "(arguably) potential impacts on safety standards and the performance of the network.
  

He says the evaluation will deal with issues such as the impact on job security, maintenance of the rail infrastructure and regional communities in NSW.

"All these matters are captured by the formal assessment criteria developed in direct consultation with the NSW Labor Council and rail unions," he says.

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