Cross River Rail Project

[Fares_Fair]

http://www.railpage.com.au/news-12404.htm

TONY Abbott may have made himself a thick woolly jumper for spring by declaring he won't contribute towards passenger rail projects.

"We have no history of funding urban rail and I think it's important that we stick to our knitting," the federal Opposition Leader declared recently. "And the Commonwealth's knitting when it comes to funding infrastructure is roads."

Abbott is essentially right. The Federal Government's infrastructure responsibilities have traditionally been limited to the national highway, a remnant of a war-time takeover that was subsequently continued.

Yet Abbott seems to have his needles crossed when it comes to modern rail projects. First, he was happy to plump up $750 million for that most ubiquitous of election promises, the Redcliffe rail line, at the last federal election.

Labor had plucked the project from obscurity in an obscene case of pork-barrelling and the Coalition happily dropped its knitting to follow suit.

The Coalition's local candidate at the time, Dean Teasdale, even went as far as to say the only way this passenger rail project would ever go ahead was under an Abbott government.

It must be like choking on a ball of wool every time Abbott now considers this snap commitment.

The second reason Abbott has cross-stitched himself on the issue of rail is that the old responsibilities of the state and federal governments have become blurred and confused.

This is because the states can't afford what they are responsible for.

At the same time, federal governments of both persuasions prefer to cherry-pick projects that are politically convenient, rather than permanently assume responsibility.

If Abbott thinks all the old knitting responsibilities should be re-established, his government, if elected, should also get out of the business of health and education.

However, let's not forget it was Abbott who promised a federal takeover of a Tasmanian state hospital at the 2007 election, when the Coalition was at risk of losing seats.

Abbott's decision to vacate the field when it comes to rail creates political problems for him in the lead-up to the September election.

Labor will be able to swan around offering funding for Brisbane's desperately needed Cross River Rail and Melbourne's metro rail proposal.

And the only noise coming from their opponent will be the click-clicking of knitting needles.

It won't save Labor. But promises towards important public transport projects may rescue a few seats.

If Abbott won't fund rail, then Premier Campbell Newman should not be throwing $1 billion at the Bruce Highway, that ramshackle excuse for a road and a federal responsibility.

The screams if this occurs would be heard loudest in George Street but really should be directed at breaking the ice in the cold of Canberra.

Newman won't withdraw though because he's wedded to the commitment. It was his Bruce Highway promise that bonded him to communities up and down the Queensland coast last year.

So in the end we are likely to be left with a bizarre scenario of a cash-strapped State Government funding a federal road and a federal government refusing to help fund a state rail project.

No wonder the failure of governments to get infrastructure right gets voters' knitting in a knot.

Steven Wardill is The Courier-Mail's state political editor

[#Metro]

Is this latest gospel or non gospel?

Time to give a state exit scheme and subsidise residents who want to leave Queensland and live in Auckland, NZ.

[somebody]

Fix the funding structure so that the states have revenue to cover at least 90-95% of their expenses and what they can actually be held 100% accountable for at the ballot box and we might actually get some of these large PT projects done.

Exactly, and Kevin Rudd promised to do precisely this with the Federal takeover of health, but when in office didn't feel like actually doing it.

[daryl]

The real problem with the city is that 6 lines do not go into 4 between Central and Bowen Hills without creating limitations on the system . You can only have 1 train in a section between signals at a time . This is where the study for improving Brisbane`s rail services should be focussed .

[Stillwater]

So, the state government has refused a deal whereby it would get $718m from the feds in tomorrow's budget towards extra lanes for the Gateway Motorway north of the Gateway Bridge.  The deal was that it had to match Commonwealth spending dollar for dollar.  Queensland is holding out, saying it wants federal Labor to match the Tony Abbott promise of $1 billion in federal funding for the Gateway.  Now where could that $718m be spent? 

[minbrisbane]

Interesting read: 

http://m.brisbanetimes.com.au/queensland/budget-rallies-around-roads-and-cross-river-rail-20130513-2jigv.html

[Gazza]

http://www.theaustralian.com.au/news/federal-budget-green-light-for-brisbane-cross-river-rail-project-but-private-sector-crucial/story-e6frg6n6-1226642442208

THE long-awaited Cross River Rail Project has been given the green light in the federal budget but the private sector will have to step in to get the vital project off the ground.

The Gillard Government has promised to upgrade several major roads in Queensland, give a boost to the local movie industry and improve water quality in the Great Barrier Reef.

But the vital Cross River Rail project was perhaps the most anticipated budget announcement, however, Canberra ear-marked just $715 million for the plan in a dollar-for-dollar funding arrangement with the State Government.

The shortfall of nearly $3 billion on the $4.3 billion project is set to be filled by the private sector which will be asked to tender for work on the project in exchange for highly secure, government-backed returns on their investment.

The project, identified by Infrastructure Australia as a priority of national significance, includes a 10km twin track tunnel between Yeerongpilly and Victoria Park.


Transport Minister Anthony Albanese said the project would also include underground stations at Woolloongabba, Boggo Road, Albert Street and Roma Street.

"This transformative project will almost double the capacity of Brisbane's suburban rail network, allowing it to carry over 17,000 extra passengers during the morning peak hours," Mr Albanese said.

The Commonwealth intends tendering out major aspects of the project to the private sector and repaying contractors with state and federal funded "availability payments".

The availability payments, with the cost again split 50/50 between Canberra and Queensland, are essentially a bond scheme, providing a guaranteed return to private contractors doing government work, and allowing governments to spread their costs over several decades.

The plan looks likely to keep the state inside the $2 billion budget allocation it had made for the project.

Transport Minister Anthony Albanese said the financial mechanism of availability payments worked well in a host of government contracted projects, and he expected a competitive tendering process.

Meanwhile Queensland will take a large slice of the $6.2 billion to be spent over the next five years to help support disaster relief, with $1.9 billion to help the state recover from the January floods.

Regional roads for upgrade include Mackay which will get its ring road, as well as the Ipswich Motorway which will be be upgraded from Rocklea to Darra, while the Warrego Highway will be upgraded between Toowoomba and Miles.

The local movie industry will also get a boost with $21.6 million earmarked to attract production of the feature film "20,000 Leagues Under the Sea: Captain Nemo" to Queensland.

Queensland's Great Barrier Reef will also be given further protection with a $200 million project over the next five years designed to improve water quality.

The "Reef Rescue" is designed to help land managers, including cane farmers, adopt better agricultural methods reducing the discharge of nutrients sediments and pesticides into the reef lagoon.

Queensland farmers will also benefit from from the budget's Farm Finance package designed to help struggling farmers handle debts by providing concessional loans and more rural financial counsellors.

[SurfRail]

Better than what I was expecting.

[Gazza]

Hopefully getting the private sector involved will get some good cost savings and innovation in the project...Heck they might even be willing to expand the scope of works (And do some of the surface stuff that has been left out of CRR lite) for a lengthening of the bond period.

[aldonius]

Heck they might even be willing to expand the scope of works (And do some of the surface stuff that has been left out of CRR lite) for a lengthening of the bond period.

Definitely worth some push after the bus review has died down. GoldLinQ has shown that this sort of thing is a possibility.

[Stillwater]

We need to confirm whether the Queensland Government intends spending some of the federal money for CRR on the interim track enhancement and augmentation works.

[Fares_Fair]

We need to confirm whether the Queensland Government intends spending some of the federal money for CRR on the interim track enhancement and augmentation works.

http://www.couriermail.com.au/federal-election/federal-budget-green-light-for-brisbane-cross-river-rail-project-but-private-sector-crucial/story-fnho52jo-1226642442208

[Jonno]

Ok, I'm not what this actually means. Is it like a BOOT, ie they build and operate the stations and say track, get a return from the users, rents and train access fees, but if they fall short, the govt fills the difference?

Something like this  http://www.epa.gov/smartgrowth/infra_financing.htm

Transit-oriented development (TOD) is development near a transit station that offers a mix of housing, employment, shopping, and transportation choices. Putting homes, jobs, and stores close to transit can give people less expensive, less polluting transportation options while improving their access to more job opportunities throughout the region. TOD is generally compact development, which uses land more efficiently and can help preserve undeveloped land, which can protect water quality. Yet the infrastructure required to create TOD is expensive, and funding for infrastructure for new TOD might be difficult to obtain.

This report provides communities with a comprehensive guide of tools and strategies that are available for financing and funding for TOD infrastructure. It provides examples of how some communities are using specific tools for individual infrastructure components, as well as strategies for combining and bundling tools to create plans that address construction phasing and market growth over time.

Infrastructure Financing Options for Transit-Oriented Development (PDF) -http://www.epa.gov/smartgrowth/pdf/2013-0122-TOD-infrastructure-financing-report.pdf - focuses on four areas related to infrastructure finance for TOD. The report:

- Identifies dozens of financing mechanisms and strategies that communities can use.
- Showcases how 11 communities are using finance tools and funding sources to implement TOD.
- Introduces four innovative models communities could consider for their TOD planning.
- Explains how community context and market factors affect the types of financing tools or funding strategies that communities can use.

EPA delivered this report through its Smart Growth Implementation Assistance Program, which helps tribal, state, regional, and local governments explore smart growth strategies to overcome development-related challenges. Four applicants – Cobb County and the Cumberland Community Improvement District, Georgia; the South Suburban Mayors and Managers Association, Illinois; the Utah Transit Authority, Salt Lake City, and Sandy City, Utah; and the city of Wheat Ridge, Colorado – requested assistance from EPA on funding and financing infrastructure to support TOD. EPA and its contractor team used their work in these communities to help develop this publication.

[SteelPan]

Skinny6 - same folks still read Genesis literally and believe it all happened in 7 days! 

Whilst I still believe only a Genesis like miracle is going to save the current Fed Govt, I give them a pat on the back for keeping the CRR project on the front foot, at least as a theory!  We need it, but clearly face tight fiscal conditions, let's all hope, whoevers in power can, somehow, keep it moving forward - private sector funding and involvement will be the key!

[minbrisbane]

http://m.brisbanetimes.com.au/queensland/no-movement-on-cross-river-rail-20130514-2jkxv.html

Sounds awfully political to me.  How sad.

[ozbob]

From the Brisbanetimes click here!

No movement on Cross River Rail

No movement on Cross River Rail
May 15, 2013 - 12:01AM Tony Moore

Queensland Transport Minister Scott Emerson says the state government will not immediately proceed with Cross River Rail project, despite the $715 million deal tabled in the federal budget.

In his budget on Tuesday night, Treasurer Wayne Swan offered $715 million in capital expenditure up front to start the $4.4 billion project, plus a share of funding once a public private partnership model was chosen.

"Given how important this project is for Queensland, I'm happy to meet the federal government half way," Mr Emerson said on Tuesday night.

"However, I need a genuine partnership, not an attempt to con Queenslanders."

Mr Emerson said the deal from the federal government meant a reduction in Queensland's GST revenue.

"We can't afford Canberra paying just 25 per cent of the cost of Cross River Rail by slashing Queensland's GST payment to claw back half its contribution," he said.

"It amounts to Canberra giving with one hand but taking with the other."

Queensland Treasurer Tim Nicholls said Queensland's GST payments were down by $210 million and "heading towards" a $600 million shortfall over four years.

The federal government offered what Infrastructure Partnership Australia chief executive Brendan Lyon described as  an "ongoing availability stream".

Under this model, the funding is shared by the federal and state governments as part of a debt equity arrangement with a private sector operator, if and when the project starts.

Mr Lyon described this cost-sharing scheme as a "bright spot" for Queensland.

"In terms of the willingness to engage in an ongoing availability stream for Cross River Rail is a promising sign," Mr Lyon said.

Chamber of Commerce and Industry Queensland general manager Nick Behrens said business community would be disappointed by the level of infrastructure funding for the state.

"Unfortunately, only a modest commitments to the upgrade of the Gateway Motorway and Cross River Rail leaves Queensland grossly under-invested in terms of our state's infrastructure requirements," he said.

Other infrastructure projects in south-east Queensland include:

    $718 million for upgrade of the Gateway North between Nudgee Road and Barrett St northbound, and Depot Road southbound including widening from four to six lanes;
    $279 million to widen the Ipswich Motorway between Rocklea to Darra from two to three lanes in both directions between Oxley Road and Suscatand Street;
    $4.1 billion over 10 years for a range of  Bruce Highway projects; and
    $317 million for a package of road projects on the Warrego Highway between Toowoomba and Miles.

Mr Behrens questioned Mr Swan's commitment to return the budget to surplus by 2016-17.

"It is right not to sprint back to being surplus at all," he said.

"If we are too aggressive, we will unintentionally hurt economic growth."

Mr Behrens said there had not been a commitment to achieve a sensible reduction in government expenditure.

"We appreciate that it has been a challenging global environment to forecast government revenues," he said.

"However, this deficit is born out of a lack of restraint in expenditure over the past five years."

Mr Behrens did not think the budget would produce business confidence to create jobs.

"Queensland businesses are not confident in this federal government to deliver strong fiscal management and accordingly any inclination for business to employ and invest is diminished by this budget," he said.

– additional reporting by Marissa Calligeros

[ozbob]

Media release Australasian Railway Association
http://www.ara.net.au/UserFiles/file/Media%20Releases/Good-the-bad-and-the-unknown%20%281%29.pdf

14 May 2013

'The Good, the Bad, and the Unknown'- Budget 2013

The 2013 Federal Budget has delivered largely positive outcomes for commuters, whilst maintaining key investments in our freight network, the backbone of Australia's economic productivity.

"Substantial and long-awaited construction funding for Brisbane's Cross River Rail, Melbourne's Metro Rail and rail projects in Perth is fantastic news for commuters", Australasian Railway Association (ARA) CEO Mr Bryan Nye today said.

"It is good to see that the government, even in tough economic times, recognises the importance of infrastructure investment for the future of the nation and that rail is a critical part of that investment", Mr Nye continued.

Funding committed to Brisbane's Cross River Rail represents the most significant step forward in this project to date. With Brisbane's inner city rail network reaching its absolute capacity within the next 5 years, this priority ranked project is the only medium to long term solution available that will ensure Brisbane's entire transport network doesn't grind to a halt within the decade.

"However, with the $715 million on the table for Cross River Rail being conditional on both a matching contribution from the Queensland Government and significant private sector investment, the project isn't across the line just yet", Mr Nye stated.

"With federal funding now in the picture, this could be the best opportunity the Queensland Government will ever have to step up and ensure this project gets underway", Mr Nye added.

More good news in the budget is the $500 million contributed to a rail project in Perth:- either a light rail network within the city or a rail link to the airport, pending business cases being put forward to Infrastructure Australia.

With regards to freight, funding towards The Advanced Train Maintenance System (ATMS) is a significant technological advancement that will extract greater efficiencies and increase productivity on our interstate rail network. Industry will also be pleased that Inland Rail also remains on the agenda, a project that would take up to 7 hours off a Brisbane to Melbourne journey as well as moving freight from trucks to rail in line with community sentiment.

"The new funding towards ATMS, as well as upgrades to rail infrastructure to Port Botany and the ongoing work at the Moorebank Intermodal Terminal will create broader economic advantages that benefit everyone. They aren't sexy, but they are needed", added Mr Nye.

[ozbob]

Media release 15th May 2013



SEQ: So, what is next?

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 has said despite the Governments rhetoric of focus on improvements to  frequency, affordability and reliability, public transport patronage and fare affordability continues to worsen.

Robert Dow, Spokesman for RAIL Back On Track said:

"Public transport must be fast, direct, accessible and frequent. It must also be affordable."

"Over the past year the bus system has become even more unreliable (1). CBD chronic bus congestion, road congestion generally and a lack of bus priority on key arterial roads has now made delays commonplace. Coupled with some of the worlds highest price fares it is little wonder that there has been relative patronage decreases. The BCC Bus Review does very little to reduce these trends and delays. The bus review failure is going to further drive more passengers back to the roads."

"Rail peak on time performance has improved (2), the focus on catching up with the infrastructure maintenance deficit is also the correct thing to do.  Sector 2 timetable improvements long promised are nowhere to be seen though. Why are not the full 24 hour on time performance profiles for all lines published?  Other jurisdictions can what is so special about Queensland?  Where are the bus on time performance figures?  These have been not published now for some time because previously they were nonsense and false."

"The increase in interpeak train service frequency on the Ferny Grove line is being hampered by a lack of proper feeder bus support, as is the rail network generally.  Parking issues are going to further compound to unmanageable levels. The BCC Bus Review again fails to address the need to have a proper integrated connected network."

"Fares are amongst the worlds most expensive in south east Queensland (3), for what is a poorly constructed and under-performing public transport network.  TransLink are to be congratulated for attempting to start to move south-east Queensland forward with a frequent, connected, affordable, integrated public transport network.  BCC do not properly understand that real change is needed. The so called BCC Bus Review is essentially minor changes that do not constitute a major review.  It is a con to suggest it is a major review, it is just more of the same failure."

"What is the progress of the Early Capacity Works of the Brisbane Inner Rail Solution (4)?  Cross River Rail is not funded and there seems to be little chance of that now. Crunch time looms."

"What is happening with the fares? (3)  Is the fare review going to be compromised now by the bus review failures?"

"What is the progress with enabling automatic train protection and improved signalling on the suburban rail network? (5)"

"Claims that things are a ' roaring success ' when failure and gridlock is the reality is treating the public with contempt (6).  It is time a new broom was put through transport in Queensland."


References:

1. Bus Delays http://railbotforum.org/mbs/index.php?topic=2695.msg124540#msg124540

2. On Time Performance data - rail  http://railbotforum.org/mbs/index.php?board=73.0

3. Fare Review for TransLink South-East Queensland now! - Petition http://railbotforum.org/mbs/index.php?topic=9120.0

4. Brisbane Inner Rail Solution http://www.tmr.qld.gov.au/Projects/Name/C/Cross-River-Rail/Brisbane-Inner-Rail-Solution.aspx

5. 9 Apr 2013: SEQ: Suburban rail network needs Automatic Train Protection too! http://railbotforum.org/mbs/index.php?topic=9832.0

6.  Brisbane mX ' Free trips worth $19m ' 14th May 2013 page 5

Contact:

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

[ozbob]

Minister for Transport and Main Roads
The Honourable Scott Emerson

Cross River Rail must not see GST rip-off

The Newman Government won't accept anything less than a genuine 50-50 funding split for Brisbane's Cross River Rail from the Federal Government.       

Transport and Main Roads Minister Scott Emerson said it was essential that the Federal Government not rip GST funding off Queensland to pay for their share of the rail project.

"The Federal Government is trying to con Queenslanders by claiming it will pay for half the project, but then stealing back its share by cutting the State's GST payments," Mr Emerson said.

"The Commonwealth would usually be expected to pay the lion's share for this type of nation-building project, but the Newman Government is willing to accept a genuine 50-50 split.

"What we can't afford to accept is Canberra paying just 25 per cent of the cost of Cross River Rail by slashing Queensland's GST payment to claw back half its contribution.

"It amounts to Canberra giving with one hand but taking with the other.

"Given how important this project is for Queensland, I'm happy to meet the Federal Government halfway. However I need a genuine partnership not an attempt to con Queenslanders.

"We can't afford that kind of cost as we fight to reduce the debt left by the former Labor government."

An LNP review into the Cross River Rail project showed the former Queensland Labor government's version was gold-plated, overpriced and therefore not affordable.

An expert panel released a report in June last year that showed the core of the original project would deliver the same capacity for $4.45 billion – almost half the cost of Labor's plan.

"We will also continue to lobby the Federal Coalition to gain its support for the project should it form Government at the next Federal election," he said.

[#Metro]

GST is a real issue. It biases govt's IMO to spend money on concrete rather than use revenue to run ongoing services.

I have to say that I don't really understand what the difference is or the advantage is of debt versus "availability payments" to the private sector. In both cases you're paying ongoing payments to pay the cost of construction off.

CRR will not be funded by TOD development. That's a pipedream. I think I showed elsewhere on this forum that you'd need 100x The Milton's to pop up within 5 km of the CBD. And the cash from that is going to be a slow stream of payments and also comes with risk that said developments may not work out (esp if market is flooded).

[ozbob]

[ozbob]

What chance of CRR when this mob cannot even get their heads around a proper fare system, sector 2 timetabling or a bus review?

[ozbob]

No hope ... 

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

Twitter

Robyn Ironside ‏@ironsider 1m

Cross river Rail funding is "tracks without trains" says Tim Nicholls. "Not going to ease congestion." #budget2013

[ozbob]

Crikey --> What does the budget say about transport?

[#Metro]

Cross river Rail funding is "tracks without trains" says Tim Nicholls. "Not going to ease congestion." #budget2013

Rubbish, isn't this the CURRENT QR System right now? Except a small section between Darra and Ferny Grove?

[nathandavid88]

From the Courier Mail:

Queensland Transport Minister Scott Emerson says Cross River Real still a reality despite lower funding commitment

Robyn Ironside
The Courier-Mail
May 15, 201311:28AM


QUEENSLAND's Transport Minister has insisted Cross River Rail could still become a reality despite a much lower than expected funding commitment in the Federal budget.

Scott Emerson said the $715 million in funding to kick off construction on the $4 billion project was a "con job on Queenslanders".

"The reality is the Federal Government should be paying the lion's share of the project," Mr Emerson said.

"Under the deal that Labor put forward last night, they'd only be paying about 25 per cent of that project."

He said he would keep "fighting for the project" and would continue to lobby the Federal Government and the Federal Coalition to back Cross River Rail.

Opposition leader Tony Abbott has previously indicated a Coalition Government would not stump up for Cross River Rail because the Commonwealth had "traditionally" funded roads, not rail.

Mr Emerson said the Queensland Government would support a "genuine 50-50 partnership on the project but what was put on the table last night, was not a genuine 50-50 project".

Treasurer Tim Nicholls said if Queensland accepted Federal Labor's offer on Cross River Rail, taxpayers would be liable for 75 per cent of the cost of building the track.

"It still doesn't cover things like the rolling stock or the stabling yards. Tracks without trains are not going to ease congestion," Mr Nicholls said.

Australian Railway Association Chief Executive Bryan Nye urged the Queensland Government to seize the opportunity to get Cross River Rail underway.

"With Brisbane's inner city rail network reaching its absolute capacity within the next five years, this priority ranked project is the only medium to long term solution available that will ensure Brisbane's entire transport network doesn't grind to a halt within the decade," Mr Nye said.

"However with the $715 million on the table for Cross River Rail being conditinoal on both a matching contribution from the Queensland Government and significant private sector investment, the project isn't across the line just yet. "With federal funding now in the picture, this could be the best opportunity the Queensland Government will ever have to step up and ensure this project gets underway."

http://www.couriermail.com.au/federal-election/federal-budget-green-light-for-brisbane-cross-river-rail-project-but-private-sector-crucial/story-fnho52jo-1226642442208

[ozbob]

The Commonwealth has been funding urban rail since 1974 and before that even ran the Commonwealth Railways .....

Melbourne is starting to look good!

[ozbob]

Acting Premier
The Honourable Jeff Seeney

Swan budget fails Queenslanders again

Vital infrastructure projects in Queensland have been underfunded or totally ignored in Wayne Swan's latest Budget.

Acting Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said today Queenslanders should be angry at the Gillard Government's failure to meet the pressing infrastructure needs.

"Yet again they are seeking to con Queenslanders," Mr Seeney said.

"Funding for our key infrastructure priority – the Bruce Highway – is mostly money and projects that have already been announced and committed to.

"The Toowoomba 2nd Range Crossing has been totally ignored without one cent being allocated to it.

"As for the Cross River Rail commitment – that is a joke. Wayne Swan and Julia Gillard want to contribute some hundreds of millions of Queensland's GST revenues as part of their own contribution.

"Wayne Swan has totally failed to address the critical additional funding needed to provide much needed infrastructure to our growing state.

"Take the Bruce Highway, it is Queensland's main transport artery – a national highway for which the Federal Government is responsible and Mr Swan uses smoke and mirrors to try to indicate that he is providing adequate funding, when in reality he is letting Queenslanders down.

"Vital upgrades and repairs will not be made for years to come. Without the proper funding to improve the Bruce Highway, we will continue to see Queenslanders' lives put at risk."

Mr Seeney said last night's Budget actually took funding away from Queensland infrastructure spending.

"This failed Federal Labor Government has spent all its own money, now it is trying to spend ours – dipping into the State's GST receipts, demanding 50-50 funding splits for roads that are federal responsibilities.

"Queenslanders are paying a high price for an incompetent Federal Labor Government that has wasted vast amounts of taxpayers' funds and now can't provide for basic, important infrastructure needs of our communities."

[ENDS] 15 May 2013       

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

Joke alright ...  and we are all laughing ...   

[#Metro]

Well Mr Emerson, there is this WONDERFUL inefficient bus system that costs hundreds of millions of dollars per year in Brisbane, perhaps you could reform that and make some savings and do the same with the train system as well and put that aside to go in part to fund CRR?

[ozbob]

From the Couriermail click here!

The Cross River Rail project is expected to attract interest from the private sector

The Cross River Rail project is expected to attract interest from the private sector

    by: Robyn Ironside and Robert MacDonald
    From: The Courier-Mail
    May 16, 2013 12:00AM

ANALYSTS predict a high level of private sector interest in the Cross River Rail development but state and federal governments last night remained deadlocked over the future of the big-ticket Budget item.

The state government yesterday agreed in principle to support a 50-50 funding arrangement for the rail development but said the federal contribution must not be taken from the state's share of GST revenue.

In the Federal Budget, the Gillard Government committed $715 million for the project, conditional on Queensland matching the amount with the remaining $3 billion to come from the private sector and paid back by governments over 30 years.

Tony Abbott has previously ruled out federal funding for rail infrastructure, although the Opposition yesterday appeared to soften its stance.

Queensland's Transport Minister Scott Emerson said he would not agree to Labor's deal because half of Canberra's payment would be taken out of the State's GST funds.

Although he conceded that was the way infrastructure projects were normally funded, Mr Emerson said in this case Queensland taxpayers would be disadvantaged unfairly.

"We'd be willing to commit to a 50-50 arrangement but under this deal Queenslanders will have to pay 75 per cent of the cost," he said.

"It's nothing but a con job."

Federal Transport Minister Anthony Albanese questioned why Mr Emerson wanted an exemption from the GST component of Cross River Rail but not on other major infrastructure spending such as the Bruce Highway and the Gateway Motorway.

He told Federal Parliament the allocation of $715 million was at the Queensland Government's request.

Infrastructure Partnerships Australia chief executive Brendan Lyon said there would be a "very high level of interest" from the private sector if the State and Federal Government can reach agreement to take the Cross river rail project to market.

"There's absolutely no shortage of capital for availability payment-based PPP projects," he said.

IPA is the peak body for the infrastructure industry.

Mr Lyon said a "whole range of global rail operators" were already working on or bidding for similar projects around Australia including Sydney's Northwest Rail link project, Melbourne's $4 billion plus Rail Link development and the Gold Coast Light rail project, which received $365 million Commonwealth boost in 2009.

[ozbob]

From the Brisbanetimes click here!

Private sector keen to partner on Cross River Rail

Private sector keen to partner on Cross River Rail
May 16, 2013 - 12:34PM Tony Moore

The investment firm behind the Gold Coast's light rail would back the $4.4 billion Cross River Rail underground system proposed for Brisbane through a new public private partnership model.

Following Tuesday's $715 million federal funding pledge, Plenary Group managing director Paul Oppenheim said there was "significant interest" from the big four Australian banks and overseas pension funds for an "availability PPP" model.

"Plenary Group would certainly be interested in partnering with the State and Federal governments on the Cross River Rail project once a decision was made on procurement," Mr Openheim said.

"Increasingly, we are seeing the availability PPP model as the most efficient use of private financing to deliver large public infrastructure projects round Australia."

"We would support the use of an availability PPP model for Cross River Rail project."

The model would see the project built along the same lines as the $1 billion Gold Coast Transit light rail system – a proposal supported by Queensland Transport Minister Scott Emerson.

"We've done it with the Gold Coast light rail and it's something we are doing with the new generation rolling stock," Mr Emerson said.

"So it's not unique, it is something that is happening."

Mr Oppenheim said the model had already shaped the firm's involvement in 21 major public private partnerships in Australia and North America, and was unlike the "patronage PPP" model used to build Brisbane's notorious Clem7 and Airport Link road tunnels.

In a patronage PPP the private firm or consortium receives revenue back from the tolls it receives from the patronage, hoping to produce a large profit over a long period of time.

To receive the profit, it assumes the risk for the number of motorists, or passengers.

However the availability PPP model has a private consortium arrange finance from banks and investors to build the project, though the consortium receives no revenue from tolls from cars, trains, or patients.

It takes no risk in these areas, only in the construction and maintenance.

Instead of toll revenue, in the case of the Gold Coast Rapid Transit project, the Plenary Group's private consortium, GoldLinQ, receives regular payments from federal ($365 million), state ($464 million) and the Gold Coast City Council ($120 million).

The group raised $365 million private borrowings to partner on the Gold Coast rail project, and Mr Oppenheim said there was still "an appetite in debt markets" to fund similar infrastructure initiatives.

However, significantly more money would need to be raised for Cross River Rail based on current government funding levels.

Even if the federal government's $715 million pledge manages to attract a match from the Queensland Government, that still leaves a gap of about $3 billion.

A spokesman for the Plenary Group said this $3 billion sum would be paid back by state and federal governments to the private company as regular payments over a 30 to 40 year period.

Federal Transport Minister Anthony Albanese told parliament on Wednesday the "availability funding" PPP had been requested by the private sector.

[#Metro]

"Increasingly, we are seeing the availability PPP model as the most efficient use of private financing to deliver large public infrastructure projects round Australia."

"We would support the use of an availability PPP model for Cross River Rail project."

I don't understand this at all. It seems that the sole purpose of the financing is to keep the debt off the balance sheet of the government.

See, there is the thing - the money is a loan that has to be paid back with interest. Whether the government does the borrowing or a private company does it, the entire loan still needs to be paid out with interest payments anyway.

Private finance is also more expensive to obtain than government debt - it would be cheaper to borrow at government rates than at private sector rates. Why can't the government issue bonds over this to fund the project?

So I don't get it; There may be one upside, a private company may be more interested in retail, commercial and residential development opportunities (we should push this hard) than TMR ever would.

[SurfRail]

There's also the fact that CRR is heaps more expensive that GCLR will be to operate.  The private funding for GCRT is predicated around the system having high patronage and relatively low operating expenditure (ie less funding required to run it per year than the current Surfside bus network, around $40m vs $70m I believe), and the government topping up the difference.  The cost recovery for CRR is going to be a lot less than GCRT proportionately and therefore the case for investment is going to be a lot more marginal.

[Jonno]

From the Couriermail click here!

The Cross River Rail project is expected to attract interest from the private sector

The Cross River Rail project is expected to attract interest from the private sector

    by: Robyn Ironside and Robert MacDonald
    From: The Courier-Mail
    May 16, 2013 12:00AM

ANALYSTS predict a high level of private sector interest in the Cross River Rail development but state and federal governments last night remained deadlocked over the future of the big-ticket Budget item.

The state government yesterday agreed in principle to support a 50-50 funding arrangement for the rail development but said the federal contribution must not be taken from the state's share of GST revenue.

In the Federal Budget, the Gillard Government committed $715 million for the project, conditional on Queensland matching the amount with the remaining $3 billion to come from the private sector and paid back by governments over 30 years.

Tony Abbott has previously ruled out federal funding for rail infrastructure, although the Opposition yesterday appeared to soften its stance.

Queensland's Transport Minister Scott Emerson said he would not agree to Labor's deal because half of Canberra's payment would be taken out of the State's GST funds.

Although he conceded that was the way infrastructure projects were normally funded, Mr Emerson said in this case Queensland taxpayers would be disadvantaged unfairly.

"We'd be willing to commit to a 50-50 arrangement but under this deal Queenslanders will have to pay 75 per cent of the cost," he said.

"It's nothing but a con job."

Federal Transport Minister Anthony Albanese questioned why Mr Emerson wanted an exemption from the GST component of Cross River Rail but not on other major infrastructure spending such as the Bruce Highway and the Gateway Motorway.

He told Federal Parliament the allocation of $715 million was at the Queensland Government's request.

Infrastructure Partnerships Australia chief executive Brendan Lyon said there would be a "very high level of interest" from the private sector if the State and Federal Government can reach agreement to take the Cross river rail project to market.

"There's absolutely no shortage of capital for availability payment-based PPP projects," he said.

IPA is the peak body for the infrastructure industry.

Mr Lyon said a "whole range of global rail operators" were already working on or bidding for similar projects around Australia including Sydney's Northwest Rail link project, Melbourne's $4 billion plus Rail Link development and the Gold Coast Light rail project, which received $365 million Commonwealth boost in 2009.

Fed LNP will soften its approach to the funding of suburban rail because so many state govts are LNP with thir hands out for money to fund major suburban rail projects.

Not sure why there is such a poo fight over if money comes from GST or not when road funding does, suspect its the state LNP trying to find fault with the proposal.

Seems like a good outcome with money in the bank project for the private sector, I wonder what is their risk? Perhaps getting the project done on time and budget?

I saw an article either here or online that showed that Road Funding does not impact GST distribution but rail funding does!!! Talk about loading the books for seeking road funding.

[somebody]

I don't understand this at all. It seems that the sole purpose of the financing is to keep the debt off the balance sheet of the government.

Surely not.

[ozbob]

Twitter

Anthony Albanese ‏@AlboMP 1m

Heading to Kangaroo Point in Brisbane for Media Conference on #crossriverrail

[ozbob]

Twitter

Robyn Ironside ‏@ironsider 1m

Kevin Rudd joins federal Transport Minister Albanese to inspect cross river rail plans. http://t.co/iI1RLQTRmU

[ozbob]

Twitter

Robyn Ironside ‏@ironsider 1h

Federal Transport Minister says today's press conference on Cross River Rail was supposed to be held in partnership with Qld Govt. #auspol

[ozbob]

Twitter

Anthony Albanese ‏@AlboMP 48m

Qld Min Scott Emerson texting qns to journos to ask on #crossriverrail - he should have just shown up and backed in the project #budget

[ozbob]

From the Brisbanetimes click here!

Qld playing games with rail: Albanese

Qld playing games with rail: Albanese
May 17, 2013 - 11:46AM Tony Moore

The Queensland Government has reneged on a deal for Brisbane's underground Cross River Rail project Federal Transport Minister Anthony Albanese says.

Backed by Treasurer Wayne Swan and former Prime Minister Kevin Rudd, Mr Alabanese said state Transport Minister Scott Emerson agreed in writing to co-fund the $5.2 billion project.

He said Mr Emerson supported the idea of matching a $715 million Commonwealth contribution as a means to kick-start a public private partnership process.

Showing letters outlining the agreement at a press conference in Brisbane, Mr Albanese flatly rejected comments from Mr Emerson that he had asked for 100 per cent GST concession from the project.

"Well, he didn't. It's in writing. Scott Emerson was supposed to be here this morning," Mr Albanese said.

"He was supposed to be here this morning and had agreed to be here on the basis of the agreement that was announced in Tuesday's budget.

"Instead of attending this joint press conference to announce formally this exciting project, what we have is the Queensland government playing politics," Mr Albanese said.

"They need to ... get on with doing not only what they said they'll do but what they asked the federal government to do and we agreed."

Mr Emerson is yet to answer those claims, but he is expected to say the federal government is clouding two GST issues; the GST status of the project itself and the GST status of the $715 million payment offer from the federal government.
The state government says this upfront $715 million should totally come from the federal government GST free as a match for the $715 million they ask from the state government.
Mr Albanese said that was not what the Queensland Government had asked.

A spokesman for Mr Emerson said the two levels of government met on April 24, 2013 to try to reach agreement.

"We said we wanted it to be GST free," the spokesman said.

It is understood Federal Treasurer Wayne Swan insisted the payments be 50:50.