Long term leases [was Asset sales?]

[ozbob]

Brisbanetimes --> With finances pushed to the brink, LNP sees asset sales as only option

... Scoping studies have been ordered for the Townsville and Gladstone ports, the Mount Isa to Townsville freight rail line, and electricity generation companies CS Energy and Stanwell Corporation ...

Read more: http://www.brisbanetimes.com.au/queensland/with-finances-pushed-to-the-brink-lnp-sees-asset-sales-as-only-option-20131212-2zaaq.html

[ozbob]

Brisbanetimes --> Assets marked for privatisation go under the scope

[huddo45]

Brisbanetimes --> Assets marked for privatisation go under the scope

The 'advisors', aka 'banksters' are the crooks who caused the Global Financial Crisis. This reads like a who's who of the New World Order. They'd privatise the air we breathe, given a chance.

[ozbob]

Queensland Times --> MP vows: I'll cross the floor on asset sales issue

IPSWICH West's sitting LNP member Sean Choat says he is prepared to cross the floor in future if his government attempts to sell electricity, water or transport utilities.

But in responding to Mr Choat's bombshell, Labor's Bundamba MP Jo-Ann Miller said he must now resign from the LNP and become an independent or a member of a minor party.

Mr Choat said he understood there was "nothing up for sale and hopefully it won't come to that", but said he would vote against his LNP colleagues if necessary.

"I am opposed to the sale of electricity, water and transport-related utilities - I want to be very clear about that - it's no secret and I'd use my vote in the parliament to that end," Mr Choat said. "I am basically saying in essence that I will cross the floor if necessary.

"It is not common for someone to go against their party, but that was my view back in 2009 when privatisation happened under Labor and my attitude hasn't changed.

"If, in future, the government said it was going to sell Stanwell (power station), I would say, 'No, I don't support that'.

"I do understand there are financial pressures on our state as a result of poor decisions of the previous government and we need to sort that out - we just need to consider a full range of options."

Mrs Miller said if Mr Choat was serious about his stance, then he should inform the parliament next week and leave the LNP.

"He needs to make his position clear in the parliament next week in adjournment debate or in matters of public interest debate, because you only need to cross the floor if there is a division," she said.

"And if that is his position, he should resign from the LNP because he won't be able to support the LNP's views on asset sales."

Mr Choat said the LNP had no plans to sell assets, but Mrs Miller disagrees.

"The LNP government has indicated on numerous occasions that it intends to sell electricity assets," she said. "Anything that is not nailed down will be sold by this LNP government.

"It is easy for Sean Choat to make out that he is against it, however if he really believes that then let him sit as an independent in the parliament.

"That is just what other LNP members have done. They have resigned from the LNP and become independents, members of Katter's Australian Party or members of the Palmer United Party."

The QT put to Mrs Miller that she stayed in the Labor party despite it privatising assets when Anna Bligh was Premier.

"The Labor government did, and I was opposed to that and everyone knows that," she said. "I didn't (resign) because I stood firm for the Labor Party platform, which is against asset sales."

Mr Choat said his opposition to asset sales was "ingrained".

"Most people know that I was an employee of QR Ltd," he said.

"The statement was made by the (previous Labor) government that they weren't going to sell it, but they went ahead and did even though 88% of the public made it clear that they didn't want them to.

"After that no one gave me a choice, or anyone else, which company they went into.

"It was very clinical. It was, 'Bang, you are in this company. End of story. Too bad, so sad'.

"I was able to take a redundancy and I left, but not everyone is in that situation.

"I just thought it was a bad move.

"The freight operations of QR were assets that the government and people owned that have proven since the sale to be quite valuable, and I think it was a lost opportunity for the people of Queensland.

"They sold what was basically all of the revenue-producing assets of the company," Mr Choat said.

[ozbob]

From the Sunshine Coast Daily --> Treasurer warns: sell off assets or miss rail project

UNLESS Queensland slashes its $80 billion debt, the rail line from Brisbane to Nambour won't be duplicated "for 25 years".

Queensland Treasurer Tim Nicholls delivered this and other sober warnings as he met with a group of Sunshine Coast business, community and government leaders to discuss the state of Queensland's debt yesterday.

The two-hour workshop, held at Lake Kawana Community Centre, wasn't all doom and gloom.

Indeed, the Treasurer was able to boast of a state economy that was twice as strong as the Australian average.

But Mr Nicholls has set his sights on the state's $80 billion debt - and the need to cut this figure by at least $25 billion, if the state is to win back its triple-A credit rating.

To sell the need to sell state-owned assets, Mr Nicholls has embarked on a tour of key Queensland cities, meeting with community and business leaders.

"The one thing that holds us back from being able to achieve what we believe is Queensland's full potential is the level of debt that the state holds," Mr Nicholls told the meeting.

"That is projected to reach $80 billion in 2014-2015. That's $15,000 for every Queenslander, twice the average of the rest of the country.

"It's been a very steep increase in debt. In recent years, previous governments have failed to balance their budgets and have had to make up the difference by borrowing.

"We're losing the capacity to fund new infrastructure so, if for example, we wanted to talk about the (Brisbane to Nambour) rail upgrade, it'll be on the list but it's not going to get funded.

"Duplication of the rail line at Nambour is not going to happen for 25 years ... if we don't get a solution to this."

Mr Nicholls said the government had been advised to urgently pay pack at least $25 billion debt or risk being unable to fund any more infrastructure.

"We have to reduce our debt by $25 billion. We've got to go from 80 to 55. That'll get our triple-A credit rating back and give you sufficient credit to be able to borrow to fund infrastructure in the future," the Treasurer said.

"That's the number that the commissioner of the audit said will enable you to borrow again without imperilling your credit rating and will free up sufficient funds to enable you to continue to invest in the state."

Mr Nicholls said the government had identified several state-owned assets that if sold, would enable it to pay back the magic $25 billion.

"We've identified a number of businesses that could potentially be sold and we said they were the ports of Townsville and Gladstone, and we might also include the Mount Isa to Townsville railway line," he said.

"Two coal-fired power generators - CS Energy and Stanwell - and the industrial assets of Sunwater. They are pipelines that service the gas fields, the coal mines; the agriculture sector will get theirs back as a separate, locally-managed scheme.

"In terms of the big power distributors, Powerlink, Ergon and Energex, we would look at alternative ways of getting private finance into them while still maintaining majority ownership position.

"To give you an example, CS Energy, a flat coal-fired power station-owning company,...  has not made a profit since 2008. And three years ago it required a $300 million capital injection from the government, ie, taxpayers, simply to keep it solvent.

"So it's selling electricity into a national market, over which we have no control, at the same price it was selling electricity 10 years ago.

"In the same period, its salary costs have gone up by better than 4% a year, until this year, when they went up by 2.5%.

"So you have to say, is that an asset the people of Queensland are better off owning, or is that an asset that the people of Queensland are better off selling - if we can sell it?

"We haven't made a decision about whether we will do that but it needs to be considered because it is, on the face of it, the right solution for the problem we have."

Mr Nicholls said the Government was also contemplating savings that could be achieved by selling Queensland's regional rail network.

"Currently, we're in discussions with Australian Rail Track Corporation about our regional rail network and the opportunities around the Australian Rail Track Corporation taking over the ownership of that from Queensland Rail so we become effectively the runner of trains. We run the trains on the track, we're not the owner and maintainer of the tracks," he said.

"That's something that we wouldn't be selling, that's something we would pay to give away because we would avoid the ongoing cost of maintenance and upgrading, and they have more funds to do it."

While the subject of yesterday's two-hour gathering at Lake Community Centre was paying down a sky-rocketing state debt, the meeting was hardly all doom and gloom.

Meeting participants, which included Mayors Mark Jamieson and Noel Playford, were told that the latest economic figures show a state well on its way to recovery from the lows of the 2008 GFC.

"Growth is going really well. In the year to September 2013, Queensland's gross state product grew by 4.1% and that's double the rate of the rest of Australia," Mr Nicholls said.

"We anticipate that this growth will go up to 6% in 2014/2015 so we're on an upward trajectory. That 6% will be on the back of gas exports, predominantly.

"We're certainly seeing a return to the construction industry, with housing approvals and other approvals starting to come through ... but there's still a bit of a way to go to see construction start on these approved projects.

"There is reason to be optimistic around tourism. The Gold Coast have had their best year in almost a decade.

"Certainly the absence of storms, cyclones and other natural disasters has certainly had something to do with that but also the work the government has put into building that pillar of the economy.

"Resources continue to be strong. But resources in terms of investment are tapering off.

"The massive investment that has gone into the gas fields and the gas-processing plants in Gladstone will naturally come off.

"You can't keep building at that rate. So we'll go from a construction phase to an export phase. And that will continue to drive strong economic growth.

"And agriculture, despite the current drought over much of Queensland, is showing strong growth as well, particularly in terms of exports into markets like China and Asia where are products are seen as a very desirable clean and green product."

Mr Nicholls said no decisions had been made on asset sales and the current meetings with community leaders was just the first step in a long process of public consultation and exploration of solutions to Queensland's debt.

"This is the first of many discussions we want to have with Queenslanders about the state of the economy," he said.

""We'll be producing a draft plan and I'll be releasing that at the budget, saying 'Here is what the government believes is the appropriate way forward.'"

UP FOR SALE?

Assets the Queensland Government is considering selling to pay down its debt:

    Townsville and Gladstone ports
    Mount Isa to Townsville railway line
    CS Energy and Stanwell coal-fired power generators
    Sunwater's industrial assets 

[ozbob]

Gold Coast Bulletin -->Treasurer Tim Nicholls freezes Gold Coast project spending in bid to reduce $80 billion debt

THE State Government is putting the Gold Coast on ice - freezing any spending not already approved.

This means projects such as the second stage of the light rail network, the city's cultural centre, extensions of the M1 motorway and the Southport Town Centre will not go ahead until the deep freeze is lifted.

The good news is the State Government is not planning on selling off any Gold Coast assets as it works to reduce debt levels.

Mr Nicholls, who visited the city yesterday as part of a "listening tour", said the government's focus was paying down $80 billion of debt.

"There is a cloud over never-never projects like these," he said.

"The state won't be able to make a contribution.

"We have been told that the state will not get the AAA credit rating back until $20 to $25 billion of that debt disappears."

Acting Mayor Donna Gates said the projects, particularly the M1 extension and connection of the light rail, were desperately needed.

"This is really disappointing," she said.

"We should be having a discussion about these things and working collaboratively on them.

"To just be told that you are not getting them is not good enough."

Southport Chamber of Commerce president Laird Marshall, who was at the roundtable discussion called by Mr Nicholls, said the lack of commitment for the light rail extension was the biggest concern.

"I hope they think about this and see sense on it in coming months," he said.

Based on Mr Nicholls' comments about the Southport Town Centre, the Southport Hospital is likely to stay vacant for years to come.

"There is a range of planning options for the Southport Town Centre and the old hospital is part of those considerations," he said.

The news comes as a blow to business groups which have been pushing for progress on the site because of the prime position it occupies in the city's CBD and opportunities it offers to kickstart business.

Just maintaining the hospital in the state it is in now will cost the government an estimated $15 million annually because of the security costs associated.

Committee for Southport chairman John Howe said the group was determined to progress the Southport Town Centre regardless of Mr Nicholls comments and would work within "financial constraints" to do it.

Mr Nicholls said the infrastructure commitments associated with the Gold Coast 2018 Commonwealth Games were the only thing the government could guarantee.

"We are only able to do what we have already committed to and the Commonwealth Games is part of that," he said.

The Treasurer's comments came as plans for the athlete's village at Parklands were due to be released and work on the Gold Coast Aquatic Centre at Southport enters the final stage.

Other major Games project due to kick off in the next two years include the redevelopment of Metricon Stadium, which will become part of the Carrara Sports and Leisure Centre, and construction of the Coomera sports stadium, along with the redevelopment of Broadbeach Bowls Club and the Runaway Bay Super Sports Centre.

Cr Gates made the point that work on the M1 and joining the light rail to the heavy rail were needed to ensure that Games ran smoothly and that the city could have paid for the cultural centre itself if it was not contributing more than $200 million towards the major event.

[ozbob]

From the Sunshine Coast Daily 14th March 2014 page 18

Anger over assets sale ' blackmail '

[ozbob]

Sent to all outlets:

17th March 2014

Bring forward Beerburrum-Nambour track duplication

Greetings,

Growing concerns with the Sunshine Coast Line.  Fast becoming a ' political football ' of sorts.  Oil prices are on the way up for the longer term. Now is the time to prepare with sustainable transport options for the future - freight and passenger.  Time is fast running out.

From the Sunshine Coast Daily 14th March 2014 page 18   Anger over assets sale ' blackmail ' 



Best wishes
Robert

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

====================================


Media release 27th February 2014 re-released 17th March 2014



SEQ: Bring forward Beerburrum-Nambour track duplication

RAIL Back On Track (http://backontrack.org), a web-based community support group for rail and public transport and an advocate for public transport passengers, says the Queensland Government should bring forward plans for duplicating the Sunshine Coast Line between Beerburrum and Nambour in the light of news that the state and federal governments are actively exploring a takeover of Queensland's east coast rail track corridor by the Australian Rail Track Corporation, a corporate entity owned entirely by the Commonwealth (1).

"The most pressing need for improving rail freight efficiency on the North Coast Line (NCL) serving Queensland's eastern seaboard is a requirement to duplicate the single track line north of Beerburrum to Nambour in order to untangle the mess created by freight and passenger trains sharing the corridor, while the poor alignment limits the length of freight trains and requires them to travel at an average speed of less than 70 kph."

"ARTC management of mainline track interstate, has resulted in a multi-million investment in 'below-rail' improvements, such as installing heavy duty railway track capable of supporting the heavier axle loads of more efficient freight trains. Better on-board signalling, minor deviations and GPS tracking of trains are among other efficiencies expected to flow should the ARTC deal go through. Of course, there will be spin-off benefits for passenger rail."

"Passenger rail is hopelessly compromised on the Sunshine Coast where more than 40 per cent of so-called train services are carried out by buses."

"Any works program flowing from an ARTC takeover of the line management would have to include duplication of the track through the Sunshine Coast for freight purposes, while the state could be expected to contribute to the cost of stations and car parks consistent with the Federal Government's position that it does not fund 'urban rail'."

"The fact that the Newman Government might have to contribute some of the costs associated with passenger rail operations on the Sunshine Coast should not impede it putting forward plans for track upgrades supporting faster, longer and more efficient freight trains serving Queensland's major coastal cities."

"The need is greatest on the section of track through the Sunshine Coast, that is where the money should go, and it is where planning attention must focus. Where the track duplication plans have not been completed, they should be advanced. Where land on which new track deviations has not been purchased, it should be bought up."

"Mr Emerson should bring this project to 'shovel ready' status, awaiting federal funding, and end the paralysis resulting from the Newman Government decision not to complete duplication to Nambour until 2031."

Reference:

1. http://statements.qld.gov.au/Statement/2014/2/25/joint-statement-artc-to-investigate-incorporating-queensland-into-the-national-rail-network

Contacts:

Jeff Addison
Sunshine Coast Region Spokesperson for RAIL Back On Track

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

[ozbob]

ABC Sunshine Coast

State Treasurer Tim Nicholls on Asset Sales 18/3/2014

--> https://soundcloud.com/abc-sunshine-coast/state-treasurer-tim-nicholls

[ozbob]

Brisbanetimes --> Queensland treasurer flags increased taxes and fewer services, as well as asset sales

[ozbob]

Brisbanetimes --> The asset sales roadshow and an $80b question

[#Metro]

There has been a lot of talk about QLD joining this asset sale pool, where the funds would then be used to buy infrastructure. There is a single problem with this approach - it assumes that the issue is lack of infrastructure. The problem with our rail network is lack of infrastructure in certain areas, yes, but there is another problem - we have the infrastructure, but we do not have the vehicles to run on the said infrastructure!

Little use building expensive infrastructure and then find that you don't have enough trains or buses to run on it.

We need more trains on order. Lots more. That will allow existing infrastructure to be used optimally - Shorncliffe, Cleveland, Ipswich etc to get 15 minute all day train services. Buses could be upgraded to the jumbo size (200 passengers or so).

[ozbob]

Treasurer and Minister for Trade
The Honourable Tim Nicholls

Unprecedented Public Campaign to Tackle Unprecedented Debt Problem

Launching the Australian-first Strong Choices campaign, Treasurer Tim Nicholls said the unprecedented scale of the State's debt, which now drains $4 billion in interest repayments every year, demands an unprecedented response if it is to be brought under control.

From noon today, every Queenslander will have the chance to design their own debt reduction strategy and deliver the results to the Queensland Government as part of the Strong Choices discussion.

Mr Nicholls said the launch of an interactive People's Budget website tool was the next step in continuing the conversation with Queenslanders on the Strong Choices we face to secure our future and pay down the $80 billion in debt accumulated over the last ten years.

"We have called this the Strong Choices campaign because that's what is now necessary to reduce the $80 billion debt and the $4 billion annual interest burden it places on all Queenslanders," Mr Nicholls said.

"To pay down debt Queenslanders face three choices – significantly increased taxes, reduced services or the sale or lease of some assets.

"Right now, the $4 billion interest bill is dead money.

"Our Government has big plans to build the social and economic infrastructure necessary for Queensland's growing population, like roads, hospitals, dams, schools and railway lines.

"But to turn those plans into reality, we first have to deal with a State debt accumulated over the last ten years of mismanagement and waste from the previous Labor Government.

"This unprecedented level of community consultation and communication will enable every Queenslander who wants to take part, to have the opportunity to provide detailed feedback on exactly what their priorities for the State are and to make their own choices as to how they would reduce the State's debt."

Mr Nicholls said from noon today until Monday 19 May, advertising throughout the State on television, radio, in print and online, combined with shopping centre information booths would encourage Queenslanders to make a submission to the Queensland Budget through the People's Budget tool.

"The People's Budget is an Australian first on this scale which demonstrates that we, as Queenslanders, tackle our challenges together and make strong choices when we need to," he said.

"Securing Queensland's future is a serious business, and it can be difficult to comprehend the sheer scale of the budget process, with all that must be taken into account when making economic choices.

"This interactive tool, an Australian-first, makes the Budget accessible and gives people a real understanding of the issues facing our state, highlighting exactly how our current $4 billion a year interest bill could be put to better use.

"The People's Budget is another way we're gathering feedback from across the state, along with the community forums, Virtual Town Hall meetings and round tables with community leaders, which I'll continue to hold in cities and towns around Queensland in coming weeks.

"I know the options we face are challenging and they are not particularly welcome. However, neither is the $80 billion debt accumulated over the last ten years and the Government must act now to secure our economic future.

"Queenslanders will know our considered draft plan of action for paying down debt by June, as part of the State Budget."

Mr Nicholls said the cost of advertising the Strong Choices campaign was $6 million. This included advertising on television, radio, in print and online.

"This is an important investment in making sure all Queenslanders have an opportunity to have their say," he said.

"Queenslanders can go online at www.StrongChoices.qld.gov.au or visit a local shopping centre information booth in coming weeks to use the People's Budget tool and make a submission.

"Additionally, registrations for community and online forums are still open for people who would like to take part. Register at www.treasury.qld.gov.au/communityforums."

[ENDS] 13 April 2014

[SurfRail]

Fairly obvious that privatising the power assets is on the cards.

[James]

The whole thing just has this general vibe of asset sales. Everything about taxation says 'it may hurt Aussie families', and everything about cutting frontline services says 'what about poor people'. Also note that it says sale/lease - never directly mentions sales. The 'People's Budget' is softening people up and making them realise asset sales are necessary to reduce the debt. It is also a very subtle opinion poll on asset sales as well. If everybody avoids them in their budget, naturally the government will probably avoid selling them off.

There is a simple solution, though. Why can't the federal government just raise the GST? Every state in Australia is broke, they need the money. Whoops, I forgot, that makes sense. Silly me.

[#Metro]

Some notes on GST
http://www.budget.gov.au/2010-11/content/bp3/html/bp3_general_revenue.htm

[Fares_Fair]

Treasurer and Minister for Trade
The Honourable Tim Nicholls

Unprecedented Public Campaign to Tackle Unprecedented Debt Problem

Launching the Australian-first Strong Choices campaign, Treasurer Tim Nicholls said the unprecedented scale of the State's debt, which now drains $4 billion in interest repayments every year, demands an unprecedented response if it is to be brought under control.

From noon today, every Queenslander will have the chance to design their own debt reduction strategy and deliver the results to the Queensland Government as part of the Strong Choices discussion.

Mr Nicholls said the launch of an interactive People's Budget website tool was the next step in continuing the conversation with Queenslanders on the Strong Choices we face to secure our future and pay down the $80 billion in debt accumulated over the last ten years.

"We have called this the Strong Choices campaign because that's what is now necessary to reduce the $80 billion debt and the $4 billion annual interest burden it places on all Queenslanders," Mr Nicholls said.

"To pay down debt Queenslanders face three choices – significantly increased taxes, reduced services or the sale or lease of some assets.

"Right now, the $4 billion interest bill is dead money.

"Our Government has big plans to build the social and economic infrastructure necessary for Queensland's growing population, like roads, hospitals, dams, schools and railway lines.

"But to turn those plans into reality, we first have to deal with a State debt accumulated over the last ten years of mismanagement and waste from the previous Labor Government.

"This unprecedented level of community consultation and communication will enable every Queenslander who wants to take part, to have the opportunity to provide detailed feedback on exactly what their priorities for the State are and to make their own choices as to how they would reduce the State's debt."

Mr Nicholls said from noon today until Monday 19 May, advertising throughout the State on television, radio, in print and online, combined with shopping centre information booths would encourage Queenslanders to make a submission to the Queensland Budget through the People's Budget tool.

"The People's Budget is an Australian first on this scale which demonstrates that we, as Queenslanders, tackle our challenges together and make strong choices when we need to," he said.

"Securing Queensland's future is a serious business, and it can be difficult to comprehend the sheer scale of the budget process, with all that must be taken into account when making economic choices.

"This interactive tool, an Australian-first, makes the Budget accessible and gives people a real understanding of the issues facing our state, highlighting exactly how our current $4 billion a year interest bill could be put to better use.

"The People's Budget is another way we're gathering feedback from across the state, along with the community forums, Virtual Town Hall meetings and round tables with community leaders, which I'll continue to hold in cities and towns around Queensland in coming weeks.

"I know the options we face are challenging and they are not particularly welcome. However, neither is the $80 billion debt accumulated over the last ten years and the Government must act now to secure our economic future.

"Queenslanders will know our considered draft plan of action for paying down debt by June, as part of the State Budget."

Mr Nicholls said the cost of advertising the Strong Choices campaign was $6 million. This included advertising on television, radio, in print and online.

"This is an important investment in making sure all Queenslanders have an opportunity to have their say," he said.

"Queenslanders can go online at www.StrongChoices.qld.gov.au or visit a local shopping centre information booth in coming weeks to use the People's Budget tool and make a submission.

"Additionally, registrations for community and online forums are still open for people who would like to take part. Register at www.treasury.qld.gov.au/communityforums."

[ENDS] 13 April 2014

Despite the above statement, I note that all of the TV ads I have seen for this campaign do NOT mention rail whatsoever, just schools, health and roads ! 
#2tracks anyone?

[ozbob]

Couriermail --> Exclusive poll shows just 23 per cent of Queenslanders support planned $33 billion asset sell-off by Newman Government

[ozbob]

Might be something on this later today ..

[ozbob]

JOINT STATEMENT
Premier
The Honourable Campbell Newman
Treasurer and Minister for Trade
The Honourable Tim Nicholls

Strong Choices Plan gets finishing touches

Queenslanders will see the Government's finalised Strong Choices plan to pay down the State's $80 billion debt through asset leases next week.

Premier Campbell Newman and Treasurer Tim Nicholls today put the finishing touches to the plan which they will take to Cabinet on Tuesday.

"This is a momentous decision for Queensland and we've taken our time to ensure we get it right." Mr Newman said.

"On Tuesday the Treasurer and I will take the final plan to Cabinet and ask our colleagues for their support.

"Following Cabinet, there will be a special Party Room meeting where Government MPs will have the chance to consider and vote on the plan.

"I'll be asking MPs to support it because our Strong Choices Plan is about securing our State's financial future.

"We've listened to Queenslanders and redrafted the plan to address concerns about control of State assets.

"Under the plan we are taking to Cabinet there will be no sales of assets, only long-term leases.

Treasurer Tim Nicholls said Queenslanders have told the Government they want to reduce the debt but they also want to be sure that at the end of the leases the State retains ownership."

"Long-term leases would allow the Government to pay down $25 billion in debt and reduce annual interest payments from their current level of $4 billion a year," Mr Nicholls said.

"As I've gone around the State listening to what Queenslanders want, it's very clear that they think our current interest bill of $450,000 an hour is too much," he said.

"By leasing assets we can pay down some of the debt, reduce our interest bill and set up a series of funds to pay for the schools, hospitals, roads and rail we're going to need in the future as our State grows.

"During the consultation phase of the Strong Choices campaign Queenslanders have come forward with dozens of projects they believe our State needs.

"But until we can reduce that $80 billion debt we will not be able to fund all the job-creating infrastructure projects that Queensland needs to ensure future economic growth."

[Ends] 4 October 2014

[dancingmongoose]

I'm much more supportive of asset leasing than asset selling. But all the politicians can't see past the end of their term, so they go with the option that gets the most money now, not the most money in the long run. If assets are leased long enough they will earn more money than a sale, and we retain the assets and can just lease them off to someone else if we need to.

[ozbob]

Be interesting to see what eventuates.  Leasing will not raise the same capital up front.  I think there might well be some delays in infrastructure as proportionally more capital to debt.

Would not be surprised to see BaT grounded for a while.  Bus network redesign and improved signalling on the rail network might be the cop out. 

[ozbob]

[ozbob]

Brisbanetimes --> Government MPs called back for asset lease vote

[Fares_Fair]

Premier today announced that asset leases (there will be NO asset sales) will raise some $37 billion, up from the $33 billion initially announced.
I specifically told the Premier in our Community Cabinet meeting with him on 23 April, that long-term leases were my preference over asset sales per se.
Great to see that view obviously endorsed by others.

It means the income earning assets will remain in State hands - and that's a great outcome.

[#Metro]

Endowment Effect

In behavioral economics, the endowment effect (also known as divestiture aversion) is the hypothesis that people ascribe more value to things merely because they own them.

en.wikipedia.org/wiki/Endowment_effect

The opposition is going to HATE this because technically its not a privatisation, anymore than renting out your house is a sale, or a hotel 'selling' its rooms and achieves effectively all the objectives of a sale - that is cashing out future income streams today to pay for today's needs.

[ozbob]

 

BaT on hold might be necessary as limited funds hey?

I would like to see:

Sunny Coast track amplification go ahead.

Stage 2 GC light rail.

Rather than wasting billions, simply sort out the bus network.  Commence moves for ATP on the suburban system.

There will not be enough dough for BaT for a while, particularly while Abbott is in the lodge.

[mufreight]

Premier today announced that asset leases (there will be NO asset sales) will raise some $37 billion, up from the $33 billion initially announced.
I specifically told the Premier in our Community Cabinet meeting with him on 23 April, that long-term leases were my preference over asset sales per se.
Great to see that view obviously endorsed by others.

It means the income earning assets will remain in State hands - and that's a great outcome.

The assets themselves will remain in public ownership but the revenue stream from their operation will not while the private operators will increase the charges for the use of those assets to cover their costs and provide a maximum return to their investors/shareholders while minimizing their expenditure on maintenance renewal and expansion of those assets to meet public demand.  The scenario will follow the script of what happened with the railways in Tasmania under private operation, run it into the ground and asset strip the operation then when it becomes an enviable skeleton unable to continue operation hand it back to the government which is then forced to spend billions to return it to a meaningful operation but still providing a lower level of service that pre privatization. 

[#Metro]

Results of Railway Privatization in Australia and New Zealand
Robert Williams
David Greig
Ian Wallis

http://siteresources.worldbank.org/INTTRANSPORT/Resources/336291-1227561426235/5611053-1229359963828/tp-7_AustraliaNZ-rail_concessions_web.pdf


The problem with rail in general is that it is facing huge competition from trucks and upgraded roads. As the viability of services ran down, railways in Australia and NZ began to draw increasing funds from government budgets. While there's nothing wrong with that, it does mean that the politicians had less to do with their funding pie and had a headache on their hands. Governments in Australia and NZ then offloaded these operations to the private sector to get the private sector to do all the work reforming and wear the risk of doing so (as no government wants to do the 'dirty work' of firing people from failing businesses due to political toxicity).

The private operators did not cause it to go bankrupt, because it was already financially unviable anyway. So I think in some ways it was a last ditch effort to make someone -anyone- have a go at turning things around and make sure someone other than the government was wearing the risk for that.

Regulations which required certain commodities to be carried by rail were progressively phased out over
a 30 year period between 1965 and 1995. There are few, if any, remaining regulatory restrictions which
limit road transport's ability to compete with rail in intrastate markets and road has proven to be a highly
effective competitor in most rail markets, including some bulk traffic, such as short-haul grain and coal.
High capacity truck configurations, (for example, B-doubles and road trains) have greatly boosted road
productivity and now a significant proportion of the rail freight task, is road competitive (the exceptions
being most coal and steel, ores, and longer haul grain).

Rail had been losing market share in many of its traditional freight markets. In the interstate transport of
containerized freight, the rate of growth in the volume of freight carried on road is about three times that
for rail. In the transport of agricultural products (other than grain), livestock, fertilizers and cement, rail
had gone from being the dominant form of transport to, in most cases, a minor player. Additionally, rail was no longer a significant provider of non-urban passenger transport.

From the report I've read the Tasmanian and NZ railways didn't really make money. The service was bankrupt while the government held it, and it was bankrupt when the privates held it too. They still don't make money today either. Nobody is going to make money regardless of who owns it because the demand is so low.

xiv. The new owners of Tasrail cut costs and improved efficiency and customer focus, and made the
railway's first ever recorded profit. However, after a few years it became clear that the railway was not
earning enough to cover the long term maintenance of infrastructure.

Investment in the Rail System

Under public ownership Tasrail was struggling to recover from almost terminal collapse in the 1970s. At
the time of privatization most of the rolling stock and some of the infrastructure was in poor condition.
ATN upgraded some of the infrastructure and most of the rolling stock, but we understand that
substantial investment will be required in the coming years if the railway is to survive in the longer term.
Although lightly used railways such as Tasmania's can continue for long periods with low levels of
maintenance to infrastructure that, while not in top condition, is "fit for purpose", eventually
refurbishment of parts of it, (for example, bridges) becomes essential. In Tasmania there is also a case
for improving parts of the infrastructure, (for example, tight curves and unreliable signals) that constrain
efficient operations. It is not clear whether the new owners will generate enough extra traffic to justify
this level of investment, so questions may arise about targeted government subsidies and/or further line
closures.

[ozbob]

Road transport is not paying anything like the real cost of the infrastructure it uses (it is hidden cost), rail is costed properly.  Until that is addressed the road mayhem, damage and costs will continue to get even more unmanageable.   Enlightened jurisdictions are ramping up rail because it makes sense for the bulk freight task, and is so much more cost effective when done properly.

Queensland has belatedly recognised this and is quietly moving to get more freight back on rail ('Moving freight strategy').  This week could well be a turning point.

[ozbob]

Couriermail --> Queensland privatisation plan: $12b infrastructure boost the sweetener

THE Government will entice Queenslanders to support a huge privatisation plan at next year's election with a $12 billion infrastructure honeypot.

The Courier-Mail can reveal $3.4 billion in extra funds to be reaped from switching to long-term leases of state-owned assets will all be pumped into a public works spending spree.

Liberal National MPs have been summoned to Brisbane for a formal vote on the $37 billion privatisation plan at an extraordinary party-room meeting today, six days before they were due to meet anyway.

Cabinet will first consider the plan, which now involves leasing electricity distributors, Energex, Ergon Energy and Powerlink, and power generators Stanwell Corporation and CS Energy, for 50 years with a 49-year extension option.

Private-sector equity injections for the distributors and sell-offs of the generators had been originally proposed.

Treasurer Tim Nicholls yesterday told The Courier-Mail that Queenslanders were more comfortable with leasing over sell-offs and the Government had listened to their concerns ...

More --> http://www.couriermail.com.au/news/queensland/queensland-privatisation-plan-12b-infrastructure-boost-the-sweetener/story-fnihsrf2-1227081768066

[ozbob]

Brisbanetimes --> Nicholls to detail Qld asset plan

[Stillwater]

Today's Courier-Mail says the value of goodies to be bought using the proceeds of the asset sales is now $12 billion, not $8.6 billion, as revealed previously.  Does that mean that BAT is a goer in the mix of new infrastructure projects?

[ozbob]

I am struggling to see how they will get more by leasing up front than actual sales.

Hopefully this will be explained some how later today ..

[ozbob]

Brisbanetimes --> Asset sales a 'catastrophic failure'

[red dragin]

I am struggling to see how they will get more by leasing up front than actual sales.

Hopefully this will be explained some how later today ..

Probably with a little asterisk attached.

* 12 billion over 20 years, long after we've been voted out.

[ozbob]

Twitter

Chris O'Brien ‏@COBrienBris 23 seconds ago

Cabinet and LNP MPs have endorsed @TimNichollsMP 's $37b privatisation plan. @abcnews #qldpol

[ozbob]

Twitter

Geoff Breusch ‏@gbreusch 12 minutes ago

2/2 And details of govt's asset lease plan to come in next half hour. #7NewsQ

[ozbob]

Twitter

Geoff Breusch ‏@gbreusch 10 minutes ago

The government's key message on asset leases - extra $3.4b will be put to reducing cost of living #7NewsQ #qldpol

[ozbob]

Back to $8 billion or so for infrastructure. 

Not sure if this means much for rail sadly.  Guess they will push on with the BaT, will not be much left after that.