Report Derails Freight Plan

A plan to transfer control of the state’s regional freight lines to the Commonwealth would compromise safety, degrade the rail network and cost jobs, according to a damning independent report.

BIS Shrapnel says the proposal to give the Australian Rail Track Corporation control of the track was based on unrealistic costings that would leave NSW taxpayers exposed by up to half a billion dollars.
It says that while the short term financial benefits to NSW "are tempting", the proposal itself is seriously flawed and opens the State Government up to "substantial risks".
Among the reports 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.
  

"The Carr Government should now advise the Commonwealth that the ARTC business plan failed to meet the agreed benchmarks and should not be proceeded with," Mr Klineberg said.

"The independent advice is that there are no public interest grounds for this proposal to go ahead."

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