17 Aug 2014: Brisbane: Let Brisbane Transport Drive Its Own Future

[ozbob]

Media release 17th August 2014

Brisbane: Let Brisbane Transport Drive Its Own Future

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 calls for the incorporation and separation of Brisbane Transport from Brisbane City Council (BCC).

Robert Dow, Spokesman for RAIL Back On Track said:

"It is our view the Lord Mayor should separate Brisbane Transport from BCC and let Brisbane Transport drive its own future."

"Brisbane Transport needs to make its own commercially risky decisions free from the internal bureaucracy and politics of local government. The decision to retain Brisbane Transport as a division of BCC raises serious concerns and potentially exposes ratepayers to commercial levels of business risk."

"For example, in 2010 a cost explosion occurred within Brisbane Transport forcing BCC to consider capping staff levels in other areas of the council (1). Other Councils would never experience this problem. For example, the councils of Auckland (NZ), Perth, Melbourne and Sydney do not own bus operations and do wear this risk."

"BCC also needs to focus on what it does best - core functions such as rates, roads, rubbish and redevelopment, rather than using council resources to plot the bus division's next commercial moves."

For example, BCC's own internal efficiency review by consultancy AT Kearny found:

'Inefficient process involving three divisions for bus procurement- each division increases lead times and paperwork and decreases transparency and accountability.' (page 31) (2)

"Ethical concerns arise when one considers that BCC's role as adjudicator of development applications, and at the same time, a large, commercialised bus operator. For example, prospective bus operators wishing to set up a new bus depot within Brisbane would have to prepare a development application and then submit it to BCC – their direct rival bus competitor!"

"Ultimately, the question needs to be asked: why does BCC even need to be operating the buses? BCC has been happy to privatise the CityCat by contract, contract off selected BUZ 140 services to Park Ridge Transit, and contract away special event bus services to five private bus companies, setting a precedent."

"Incorporation of Brisbane Transport will level the playing field with private operators, give Brisbane Transport greater independence and autonomy,  get commercial decision making out of the Council chambers, freeing up time and resources to focus on core council responsibilities. It will also make it easier to make the necessary reforms to the bus network and prevent unacceptable situations where meetings with TransLink were barred on six occasions."

"We call on the Lord Mayor to free Brisbane Transport by separating Brisbane Transport from Brisbane City Council and incorporating it under the Corporations Act. Further, we ask the Queensland Government to impose, as a condition of a valid tender for the bus network, the requirement that the applicant be an incorporated company, registered business partnership or sole trader, to the exclusion of all others."

"Ultimately, should Brisbane Transport win the bus contracts, and option will exist to divest Brisbane Transport by placing it into the hands of its own dedicated staff, in a staff and management buyout."

References:

1. Bus boom causes council staff crunch http://www.brisbanetimes.com.au/queensland/bus-boom-causes-council-staff-crunch-20100914-15atl.html

2. Securing 2026 Operational Sustainability http://www.brisbane.qld.gov.au/sites/default/files/news_and_publications_a_t_kearney_report.pdf

Contact:

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

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