Article: $130m subsidy for Brisbane-Cairns Traveltrain

[ozbob]

From the Courier Mail click here!


$130m subsidy for Brisbane-Cairns Traveltrain

$130m subsidy for Brisbane-Cairns Traveltrain
Article from: The Courier-Mail

By Steven Wardill

December 26, 2008 11:00pm

TAXPAYERS are paying $900 to subsidise every Traveltrain passenger between Brisbane and Cairns - the equivalent of flying eight people for free.
Despite the tough economic times, the State Government has failed to act on its "use it or lose it" ultimatum for the struggling service and will spend $130 million on subsidies this year.

But Transport Minister John Mickel has flagged a review, saying the Government was committed to subsidising Traveltrain in "broad terms" but wanted value for money.

"The Government wants to be satisfied that taxpayers' money is being well spent, and that these outlays can continue to be justified," he said.

Opposition treasury spokesman Tim Nicholls said the Government had wasted money by failing to run the services efficiently.

"The Bligh Government must explain how it will deliver these services and provide better value for Queenslanders," he said.

An analysis of Budget figures has revealed the cost of subsidising each passenger has more than tripled in only six years as the appeal of train travel dwindles against competition from discount air fares.

Figures show the subsidy for every passenger per kilometre was 50c in 2007-08, meaning the real cost of the journey from Brisbane to Cairns was an additional $900, compared with the 15c a kilometre subsidy in 2001-02, or $270 extra for the same journey.

Without the massive subsidy, a fare-paying adult passenger travelling this route on the Sunlander, which is marketed as "comfortable and affordable", would pay $1112.30 for a basic seat at normal prices. A first-class cabin would cost $1661.20.

The standard adult economy price is $212.30. A discount fare of $170 is on offer at present.

Brisbane-Cairns flights were on sale this week for as low as $109, so the Government could fly eight people for free at the same price it forks out for a single Traveltrain traveller.

The train journey also takes up to 31 hours. A Brisbane-Cairns flight takes 2 hours 25 minutes.

The blow-out in subsidising each passenger has been caused by plummeting passenger figures. A significant number of the remaining travellers have discount concession cards.

In 2001-02, 632,000 passenger trips were made on Traveltrain, falling to 425,600 in 2007-08.

Queensland Rail was predicting an additional 150 passengers a week on Traveltrain in 2008-09 but this forecast was made before the recent Tilt Train derailment.

Former premier Peter Beattie warned last year that the Government would have to consider withdrawing funding, forcing services to be cancelled, if patronage failed to increase.

Mr Mickel said the level of the subsidy would be assessed when the Traveltrain contract was renewed next year.

"This will provide an chance for the Government to examine that the level of subsidy being provided is justified," he said.

"At the same time the Government will consider funding injections for the upgrade of the trains used to provide these services."

Mr Mickel said he was encouraged by the latest Traveltrain figures - a 10 per cent or 20,000 passenger rise compared with the same period last year.

Comment:  One could question the figures as it does not include the broader social benefits from local tourism and economy inputs.  Environmental costs will also alter this artificial imbalance.  Rather then reducing Traveltrain services a platform for expansion should be put in place. Airtravel is going to be very expensive under ETS.

[ozbob]

This letter to the Editor Courier Mail was published on the 18th June 2007.  Nothing has changed since this latest article. I wonder why there is no blog on the CM article above?  Later ed.  CM blog added early afternoon ..

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The article ?End of the line feared (C-M June 15)" highlights subsidies to Queensland long distance trains.  Support of the rural community by the Queensland Government in maintaining these services is to be applauded.  It should also be noted that public transport in South East Queensland is also heavily subsidised.  So is health, electricity, water, education and other transport modes.  Rarely is the true cost of road and air infrastructure, and their environmental  penalties costed  into those transport modes. If it was, it too would show such distortions of cost and subsidies.

Governments are there to support their communities. Governments of late have lacked the long term vision of our pioneers who laid down our basic rail network.  For example, the short term myopia demonstrated when the Gold Coast and Tweed Heads railways were closed during the 1960s and right of way lost, is now hitting home in exorbitant infrastructure costs to re-establish those lines.

In twenty or thirty years it is highly likely that the only viable transport mode will be rail.  Air and road will be subject to extreme fuel and environmental costs.  The federal government has also recently indicated that the inland railway from Melbourne to Brisbane is now very likely.  Rather than pontificating about possible cutbacks, governments need to be thinking of long term needs and expanding and continuing support for rail networks.  Rail is the sustainable and environmentally friendly transport solution for Queensland and the nation.

Robert Dow, Darra.

[ozbob]

Media Release 27 December 2008

Queensland:  Long distance rail travel is the 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 users has called on Traveltrain and the Queensland Government to maintain present long distance passenger train services and consider further expansion of services.

Robert Dow, Spokesman for RAIL Back On Track said:

"Subsidies to Queensland Traveltrain long distance trains are both sensible and are of benefit to the whole community.  Support for the rural community particularly by the Queensland Government in maintaining these services is to be applauded.  It should also be noted that public transport in south-east Queensland is also heavily subsidised.  So is health, electricity, water, education and other transport modes.  Rarely is the true cost of road and air infrastructure, and their environmental penalties costed into those transport modes. If they were they too would show distortions of cost and subsidies. Queensland is more than just the south-east!"

"Governments are there to support their communities. Governments lost the transport plot in the 1950s and until recently have lacked the long term vision of our pioneers who laid down our basic rail network.  For example, the short term myopia demonstrated when the Gold Coast and Tweed Heads railways were closed during the 1960s and right of way lost, is now hitting home in exorbitant infrastructure costs to re-establish those lines."

"In twenty or thirty years it is highly likely that the only sustainable bulk transport mode will be electric rail.  Air and road will be subject to extreme fuel and environmental costs. Rather than pontificating about possible cutbacks, governments need to be thinking of long term needs and expanding and continuing support for rail networks.  Rail is the sustainable and environmentally friendly transport solution for Queensland and the nation."

"The long distance passenger trains in Queensland are unique.  Providing a quality tourist travel experience they are also important transport communication links for many remote towns throughout Queensland. The Sunlander, the Spirit of the Outback, the Westlander, the Inlander and the Tilt train services all value add to the economy of Queensland, directly and indirectly.  This was further reinforced with Queensland Rail's Traveltrain Holidays taking out the Major Tourist Attraction award at the 2008 Outback Queensland Tourism Awards (1)."

Reference:

1.  http://backontrack.org/mbs/index.php?topic=1510.0

Contact:

Robert Dow
Administration
admin@backontrack.org

[ozbob]

Adjacent article (not online) to the main article above,  Courier Mail 27th December 2008 page 7

Fighting for pensioners' ticket to ride

[Dean Quick]

Once again the courier mail has shown us just how low they can go for a "STORY" especially over the quiet xmas period. With very little else to
publish in their daily rag there is no limit to how low they will stoop and of course no limit to their biased and predictable criticism of much needed
public services. We have already read their negative one sided OPINION earlier in the year regarding SPADS. Maybe its time the so-called journalists
working for this daily publication took a much needed reality check and give us all a break.

[ozbob]

Minister for Transport, Trade, Employment and Industrial Relations
The Honourable John Mickel
28/12/2008

Traveltrain services feared under threat from Liberal National Party's "efficiency savings"

Transport Minister John Mickel has called on the Liberal National Party to outline how it intends to make efficiency savings on the operation of Traveltrain services to centres in country and regional Queensland.

Mr Mickel said the Opposition's Shadow Treasurer Tim Nicholls had claimed the State Government was wasting taxpayers' money by failing to run the Traveltrain services efficiently.

"Mr Nicholls hasn't provided anything to substantiate the Opposition's claims that the Traveltrain services are operating inefficiently. He hasn't provided any examples to show where money is being wasted.

"The ball is squarely in Mr Nicholls' court to specify how the Liberal National Party intends to make efficiency savings.

"Let Mr Nicholls say where and how money is being wasted, what efficiency measures the Liberal National Party would introduce, and how much money this would save.

"My concern is that when the Liberal National Party talks of achieving greater efficiency, that is code for cutbacks to train services to country and regional Queensland.

"My concern is that Mr Nicholls does not believe long-distance passenger train services deserve the funding support they currently get from the government, and he is looking for ways to reduce the amount of funding being provided.

"Who knows what might be targeted under the Liberal National Party's approach to cost cutting and from their so-called efficiency gains.

"That's why we need to hear from Mr Nicholls about how the Liberal National Party plans to make its efficiency savings. Until we do, passengers who use Traveltrain services have good reason to be concerned about what the Liberal National Party is proposing.

"Pensioners, for example, deserve to be told if under the Opposition's policy they will continue to receive their four free train trips a year and their 50 per cent fare discount on Traveltrain services".

Mr Mickel said the government remained strongly committed to funding the State's Traveltrain services. These were the Sunlander from Brisbane to Cairns, the tilt train services from Brisbane to Bundaberg, Rockhampton and Cairns, the Westlander from Brisbane to Charleville, the Spirit of the Outback from Brisbane to Longreach, and the Inlander from Townsville to Mount Isa.

"Mr Nicholls has demanded that the government explain how it will continue to deliver these Traveltrain services and provide better value for taxpayers.

"I am happy to do that. The government will continue to deliver these services by providing the funding involved.

"The government will ensure value for taxpayers' money by closely monitoring and scrutinising the Traveltrain contracts it has entered into with Queensland Rail.

"The funding involved runs to several hundred million dollars each year, but this is a commitment that the government is not going to walk away from."


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

[ozbob]

From Brisbanetimes click here!

Tilt train sting for taxpayers: $850 per passenger

Tilt train sting for taxpayers: $850 per passenger
December 28, 2008 - 6:24PM

Train services between Brisbane and Cairns remain on track but the Queensland premier has signalled it doesn't come cheap.

Taxpayers fork out just over $850 for every passenger who travels the 1681km journey - or $115 million for the 2007-08 financial year.

As a taxpayer herself, Queensland Premier Anna Bligh agreed the subsidy was steep at 50 cents per kilometre, but defended the service that gives pensioners and regional Queenslanders a vital transport link.

Public transport, not just in Queensland, but in most parts of the world, is largely funded by taxpayers, Ms Bligh told reporters in Brisbane on Sunday.

"I am very loath to see the Tilt Train hit the chopping block," Ms Bligh said.

"Obviously the level of subsidy of the Tilt Train from Brisbane to Cairns is a high level of subsidy, and as a taxpayer I am concerned.

"We said last year if people didn't start using it more, we might have to lose it."

And those warnings have led to a 20 per cent increase in passengers, Ms Bligh said, a number she hoped would increase.

"There are no plans to change arrangements in relation to the Tilt Train," Ms Bligh said.

"(Pensioners) have worked hard all their lives, have been taxpayers all their lives and these pensioner concessions are an important part of giving them back something."

Opposition treasurer Tim Nicholls said although the Liberal National Party (LNP) supported the service there were major hurdles to be conquered regarding the safety of Tilt Train travel before commuters would return to the track.

Just two years ago, the government subsidy was 35 cents per kilometre, which signalled a 40 per cent increase, Mr Nicholls told AAP, while the budgeted number of 435,000 passengers for the past year had fallen short by 10,000.

"They've got to improve the safety record and they've got to tell people that the Tilt Train is safe to travel on," he said.

"We believe it can be made safe with proper maintenance and signalling system and training of drivers."

Mr Nicholls also said the government had cut the tourism budget - money that was needed to promote all Queensland rail travel as an experience - not necessarily a means to get from A to B.

Head of National Seniors Australia, Michael O'Neill, agreed with both parties that the train should stay and that pensioners throughout the state relied on the public transport, which provided them with a holiday gateway and a chance to socialise.

"We can always find cheaper offerings, but for pensioners and seniors there remains an attraction for travelling by train," Mr O'Neill told AAP.

"Jumping in and being crammed into a jet for an hour-and-a-half is not always a holiday the way a day or two days on the train may provide for enjoying the holiday."

Queensland Rail's ticket price for a Brisbane to Cairns ticket starts at $212.30 (takes about two days) whereas budget airlines are offering the same route by air at $150 (two hours).

The last fatal accident involving a Tilt Train was in November when a train and semi-trailer collided at a level crossing south of Cardwell, killing the train's two drivers, Richard Wetherell, 54, and Michael Smithers, 53.

AAP

[#Metro]

"Obviously the level of subsidy of the Tilt Train from Brisbane to Cairns is a high level of subsidy, and as a taxpayer I am concerned.
"We said last year if people didn't start using it more, we might have to lose it."
And those warnings have led to a 20 per cent increase in passengers, Ms Bligh said, a number she hoped would increase.
"There are no plans to change arrangements in relation to the Tilt Train," Ms Bligh said.

Hmm. While "there are no plans", there certainly are intentions, as evidenced by sentenced #2.

Something else is also not quite right here. Government "warnings" do not make people spend ~$200 for a ticket to ride the tilt train. I think something else might be at play. Was the subsidy increased immediately before or during the period when the warning was issued? This would have led to cheaper ticket prices, and more people catching it...

Perhaps the Tilt Train can be saved- make it run faster (cut smaller stations out, upgrade crossings and track safety). I know that when I was on it, the train ran at no greater than 100 km/hr. Now, some QR Citytrains on the Gold Coast line are capable of faster speeds than that (~130 km/hr) and in victoria (VFT) ~160 km/hr

Perhaps that is what is required is the replacement of the current long distance services with VFT Style direct services, like in Victoria. This way, pensioners can have their trip, the subsidy black hole is made smaller and the rail services are kept running (but in an altered, improved form). None of the social or environmental benefits are lost...

Why is Victoria always a step ahead of us?

[ozbob]

Good point about Victoria Tramtrain, their long distance rail passenger is undergoing a revolution of sorts and is a good example of what Queensland QR Passenger could start looking at in part.  QR Passenger will be looking at all aspects of their passenger business and I expect some changes.  More modern DMU or hybrid rail motors may be part of the mix.  Track restrictions are a factor of course, but at last we are seeing some improvements.  For example the upgrade from Caboolture to Beerburrum is the first serious upgrade of the near North Coast line (will allow high speed running) and hopefully more to follow.

[ozbob]

From the Courier Mail click here!

$900-a-ticket subsidy for tilt train to remain, says Anna Bligh

$900-a-ticket subsidy for tilt train to remain, says Anna Bligh
Article from: The Courier-Mail

Patrick Lion

December 28, 2008 11:00pm

THE controversial taxpayer subsidy for long-distance train travel will remain regardless of the drain on funds, according to Premier Anna Bligh.

Ms Bligh has defended the $130 million annual bill for taxpayers to fund the equivalent of eight airfares for one Traveltrain passenger to go from Brisbane to Cairns.

Her comments came after The Courier-Mail revealed at the weekend that every passenger on Queensland Rail's long-haul services was costing the state $900.

However, Ms Bligh yesterday said it was part of living in a big state and the service was needed to help regional areas.

"Obviously the level of subsidy into the Tilt Train from Brisbane to Cairns is a very high level and I am concerned about that," Ms Bligh said.

"But there are no plans to change the arrangements in relation to the Tilt Train."

[mufreight]

Tramtrain might have overlooked that the prime politicial purpose of operating non metropolotan passenger rail services is to service all of those smaller communities along the network with some form of passenger service, remove that in the manner that he suggests and you remove the justification for all non metropolotan rail services in this state.
That these services provide affordable longdistance travel for tourists might help pay the bills and ofest the costs that would otherwise be greater so logicaly that have been made as attractive as possible within the cost constraints for tourists as well as for those travelers who have no choice or who do not wish to or can not travel by bus or air.
They all have a right to such services.

[#Metro]

Mufreight, you raise some good points.
Certainly, train travel to major regional destinations could be justified. The principle here is that a dollar spent on a rail service is a dollar not spent on something else. It is a matter of trying to fairly get the most benefit for the most people with scarce resources.

I don't mind people choosing to take a train when there are other alternatives that are cheaper or faster. That is their decision, but I think it is an opportunity wasted with a disproportionate sum of what is essentially my and your money. I think more people would be able to get to more places in less time if smaller stops were cut. They could transfer, and some of the money saved could be used to subsidise alternative transport modes to get to those cut stations. It could make some people worse off, but many more better off. I doubt there is a 'perfect' solution.

I think the tilt train can be saved with radical improvements (perhaps less carriages per service, shuttle services (rather than always originating at Brisbane), faster travel, improved marketing to tourists as a "hop-on, hop off" service (that is something you can't do with an aircraft). Seasonal flooding cutting services is a problem, flood protection (embankments, bridges etc) should be looked at too.So I think it is possible to make the majority better off, if we think hard and outside the box.

Puffing Billy is an example of this kind of thinking.
It was closed as a suburban line, the towns it stops at are tiny, very costly to run, and the service is extremely slow and old compared with today's trains. Volunteers took it over, and its purpose was changed from commuter rail service to tourist service. It is now an extremely popular.

So, the principle of making changes so that people want to travel on the service is a good one; the solution is not higher subsidy, but creativity to induce demand.

[mufreight]

Tramtrain, again you have raised points worth discussion as the first paragraph of you most recent post shows but you again fail to recognise the prime purpose of such services. 
That prime purp[ose is to provide passenger service to those small communities (smaller stops to use your term) that you feel should be eliminated in an attempt for efficiency and no there is no perfect solution.
You suggest that as a cost cutting exercise less carriages on a tilt train, sorry to rain on your parade but these trains are designed as a train set and the equipment for control and traction is distributed throught each half of the set much the same as on the suburgan and interurban units so to reduce the train size is not an option.
The operating costs for the electric tilt trains include the costs of maintaining and keeping energised the overhead from Gympie North to Rockhampton which now with the withdrawal of the electric locos from general freight services for coal line service means that that length of eklectrified line now sees only two electric tilt train services each way daily and travel train now bears the full cost where before the costs of maintaining and keeping this infrastructure were shared with the freight operator proportionaly to the services so operated.
Disruption due to seasonal flooding is now less than it was and with an ongoing program of improvements becomes less of a factor with the replacing of bridges and realignment of the line,
Using Puffing Billy as an example is less that an effective comparison, Puffing Billy is an operating entity in its own right operating over its own right of way and as you said as a Tourist railway with still a slow service and not as part of a common carrier transport operation operating over thousands of kilometers that provides a passenger service to meet community needs that is incidental to its operating freight services.
Has any consideration been given to how much subsidy both direct or indirect is paid out to everyday motorists, trucking companies and coach companies, airlines and airport operators, by comparison the subsidies paid to rail for operate community based passenger services pales into insignificance

[#Metro]

Has any consideration been given to how much subsidy both direct or indirect is paid out to everyday motorists, trucking companies and coach companies, airlines and airport operators, by comparison the subsidies paid to rail for operate community based passenger services pales into insignificance

It would appear not. The Government should release all the complete information about who gets what, how much and why. It is about time we all knew where our money was going without having to drill rocks reading obscure government reports or wading in dust at the bottom of some archive. Two wrongs don't make a right though...

Mufreight, I am making my arguments on principles, and using specific arguments to illustrate my points. This is why I included the Puffing Billy example. I could have used another one. I chose it because it used to be a suburban commuter passenger service, which was later axed from the network.

As I said earlier, I think the Tilt Train can be saved. For the other regional services, I am not too optimistic. Either the running costs need to go down, or the demand for the service needs to go up. Preferably both. Any other useful ideas should be posted here too...

People need to catch that train, and it needs to be paid for and be better than the alternatives (bus, aircraft, rental car, VFT train etc). Running trains for the sake of running trains is not a good idea, so there have to be changes if we are to keep it.

[mufreight]

Seems like the figures used vary and the means of calculating the numbers of passengers carried by Traveltrain and the effective subsidy are also considerably different.
The numbers of passengers who used Traveltrain services as quoted in the Brisbane times and the Courier Mail beat ups are wrong.
The actual figure of Traveltrain passengers carried as set out in the QR 2007 - 2008 annual report is 926000 up from the 2006 - 2007 figure of 863000, and over double the number quoted by a misinformed and lazy media more interested in a beat up than in checking their facts and presenting factual reporting.
If one wishes to research the facts and figures the per passenger per kilometer subsidy will calculate out at a figure per passenger kilometer of less than a third of that given.
This would mean that the subsidy paid per passenger kilometer for rail would be lower by comparison with the direct and indirect subsidies for other other forms of passenger transport such as air or coach.
As the figures rose by some 63000 Traveltrain journeys over the last year one can only expect that with growing population and the increasing cost of fuel the numbers of rail passenger journies will continue to increase further encouraged by better levels of service rather than as the economic rationalists and doomsayers such as the scribes from the media eroniously predict.

[Dean Quick]

Well said mufreight.