Qld Budget 2009 Asset Sales - articles and discussion

[ozbob]

From the Sunday Mail click here!

Floods, storms spark State Government fire sale

Floods, storms spark State Government fire sale
Article from: AAP

Darrell Giles and Daryl Passmore

May 24, 2009 12:00am

PREMIER Anna Bligh has given the green light to a fire sale of some of Queensland's most lucrative assets after the state's finances copped another hammering from the past week's wild weather.

The repair bill from the fifth natural disaster in a year is likely to wipe hundreds of millions of dollars from the June 16 State Budget.

It has forced the Government into unprecedented action, with Ms Bligh declaring yesterday that "nothing is sacred" as she looks to recover over $14 billion in lost revenue.

Queensland's 15 Government Owned Corporations - including Energex, the Port of Brisbane and Queensland Rail - are worth about $50 billion, with an annual return of about $900 million.

The energy GOCs will be the most attractive to buyers, particularly foreign investors hoping for a bargain in the current climate.

While previously considered "untouchables", Ms Bligh told The Sunday Mail yesterday the Government would do whatever it took to get back into the black. "The $17 billion infrastructure program will be the No.1 priority," she said.

"We believe now is the wrong time for putting up taxes. But in these economic circumstances, nothing is sacred.

"We are faced with unprecedented decisions for unprecedented times."

Asked if that meant the untouchables were now fair game, Ms Bligh said: "Yes, that's what I am saying ... everything is on the table."

Treasurer Andrew Fraser last year ruled out selling the big-money power stations and ports. "We believe it is important to maintain our investment in rural and regional Queensland ... particularly in rail and ports infrastructure," he said in the lead-up to his first Budget.

But that was before the global financial crisis.

The Government last week all but confirmed that the 8.3c-a-litre fuel subsidy would be scrapped in the Budget, with a saving of $500 million a year.

Transport Minister Rachel Nolan told Parliament last week Queensland Rail would not be sold, but Ms Bligh's comments yesterday indicated off-loading QR was now an option.

"Clearly we have some tough decisions to make in this year's Budget," Ms Bligh said.

"When your revenue drops by $14 billion as ours has as a result of the global financial crisis, you have to get the balance between what you earn and what you spend back into alignment."

The Premier agreed the latest storm was definitely one Queensland did not need, and said money set aside last year for repairs had long gone.

"New funds will be needed - there is no choice but to fix what are major roads, major arterials in heavily populated areas. It would be a risk to public safety to put off these repairs."

She refused to back down on her commitment to a four-year, $17 billion infrastructure program, which she said would create and protect 119,000 jobs.

"On paper it may be tempting for some accountants to suggest cutting our building program. But in all honesty there is not a single project on that program that I would describe as optional."

Mr Fraser has refused to rule out slashing superannuation contributions for thousands of government employees.

Unions warn "all hell will break loose" if the Government tries to target workers' retirement savings in a bid to claw back massive debts.

Many public servants benefit from a 12.75 per cent employer contribution to superannuation - well above the compulsory 9 per cent - and police officers get 18 per cent.

Cutting it back would cost employees tens or even hundreds of thousands of dollars when they retire.

"The Treasurer does not intend to speculate on Budget deliberations," a spokesman said.

Comment:  Selling of GOCs is a demonstrably failed strategy.  A short term bump, long term loss.  Bit of a beat up this one ...

[mufreight]

Another case of a shortsighted knee jerck reaction by an incompetent and inept government for the sake of politicial expedency.
Governments are elected to PROVIDE services and infrastructure and to govern so as to ensure that these services are provided.
By their own admission this government is incapable of providing those services and infrastructure that it is obliged to as a government to provide.
Traditional LABOR governments tend to build up government control of infrastructure and services not sell off publicly owned assets so it now becomes questionable if this is a LABOR government and if it is capable of governing.
The Premier should think long and hard about this, no doubt the voters of this state will, perhaps time for a change, now would be a good time to ask your local member his/her position and attitude to this fire sale mentality.

[ozbob]

From the Brisbanetimes click here!

Queensland assets fire sale tipped

Queensland assets fire sale tipped
May 24, 2009 - 5:33PM

The Queensland opposition says the state government is preparing for a "fire sale" of assets, after the global financial crisis ripped a $14 billion hole in the budget.

Treasurer Andrew Fraser today again declined to rule out selling off government-owned corporations, as the government continues to work on the June 16 budget.

Opposition treasury spokesman Tim Nicholls said the government's continued refusal to rule out the move showed it was becoming desperate to raise money to "cover up its failures" on the economy.

Mr Nicholls said the Liberal National Party (LNP) was not philosophically opposed to privatisation but did not believe the bottom of the market was the right time for a "fire sale".

He said assets, including ports in Brisbane and central Queensland, had an estimated worth of $50 billion at best, meaning their sale would still leave Queensland in debt.

"Queensland taxpayers are still going to have to pay the interest on that debt, so this is not going to be a long-term solution," Mr Nicholls said.

"Selling the assets in this market, where credit is depressed, where there are few buyers out there with the wherewithal to be able to buy, is a sign of a desperate government that really has no plan to take Queensland out of the red and back into the black."

Mr Fraser again warned Queenslanders the budget could contain "unpopular" measures, in the interest of Queensland's long-term future.

He admitted the market conditions were not suited to selling some assets, but left the door open in regard to others.

"We don't have an ideological opposition to privatisation, nor are we slavishly devoted ideologically to privatisation," Mr Fraser told reporters.

"There are particular types of assets that there is investor appetite for ... so it's not a blanket proposition.

"It's a case-by-case decision, and obviously any decisions that we make will be made with a view about the state of the market at the time and the likely state of the market into the future."

AAP

[ozbob]

My guess is the ports will be flogged.  This is probably the easiest option to sell to the punters.  Anything else will see 'riots in the streets'.

The fuel subsidy is gone too I reckon.

All government charges will increase, including public transport fares no doubt at a higher level than CPI.  Don't forget there are few years before the next election so the nasty stuff is always done in the first budget post election.

[ButFli]

Maybe they will sell QR Limited?

[stephenk]

Maybe QR passenger will run more frequent and reliable services if is sold to a company with a good track record such as MTR?

[ozbob]

From the Courier Mail click here!

State attempting to prop up ailing Budget

State attempting to prop up ailing Budget
Article from: The Courier-Mail

Steven Wardill

May 25, 2009 12:00am

TREASURER Andrew Fraser has insisted the State Government will not be selling off assets at a discount to prop up its ailing Budget.

Mr Fraser said the Government still owned assets that were attractive to buyers despite the global economic crisis and sales could be earmarked for future years.

"There are particular types of assets that there is investor appetite for ... so it's not a blanket proposition," he said.

"It's a case-by-case decision, and obviously any decisions that we make will be made with a view about the state of the market at the time and the likely state of the market into the future."

There has been speculation the Government will look at selling Government-owned corporations such as Queensland Rail as well as ports and power producers.

However, there are numerous other assets at its disposal which could be sold, such as Queensland Motorways which owns and operates the Gateway and Logan motorways.

The Government is being forced to find new sources of revenue for its June 16 Budget which has been savaged by falling GST, property taxes and coal mining royalties.

Premier Anna Bligh has confirmed the Government is considering dumping the 8.3c a litre fuel subsidy which motoring groups and industry will today rally against.

Shadow treasurer Tim Nicholls said yesterday that the Government had already gone "bust in a boom" before the crisis and the looming sell-off of assets was further proof.

"Selling the assets in this market, where credit is depressed, where there are few buyers out there with the wherewithal to be able to buy, is a sign of a desperate government that really has no plan to take Queensland out of the red and back into the black," he said.

[ButFli]

Maybe QR passenger will run more frequent and reliable services if is sold to a company with a good track record such as MTR?

There is absolutely no basis for that statement. Look at what has been acheived by public transport privatization in Victoria!

[stephenk]

Maybe QR passenger will run more frequent and reliable services if is sold to a company with a good track record such as MTR?

There is absolutely no basis for that statement. Look at what has been acheived by public transport privatization in Victoria!

Is that the Victoria that has a 15-20min off-peak service, very frequent and regular peak service patterns, and is accountable with refunds when there is poor service?

Also note, I used the word "maybe", and referred to a company with a good track record.

[ozbob]

From the Courier Mail click here!

Unions will fight the sale of state assets

Unions will fight the sale of state assets
Article from: The Courier-Mail

Steven Wardill

May 26, 2009 12:00am

UNIONS yesterday promised industrial action and a well-financed campaign against the Bligh Government over the potential sale of key assets.

The Electrical Trade Union and the Australian Services Union said the privatisation of Government assets was "madness" and promised to fight to protect their jobs.

They argued selling assets had only hurt consumers in the past and the Government needed to stand firm against "socially destructive expectations" to balance their books.

Premier Anna Bligh and Treasurer Andrew Fraser have both confirmed asset sales are being considered.

Treasury has provided the Cabinet Budget Review Committee with a list of government corporations and other assets that could be sold and prices they could expect to fetch.

The Government has indicated assets that have a "regulated rate of return" would be the most attractive to buyers in the current market, such as Queensland Rail's coal haulage business as well as power stations and distributors.

ETU secretary Peter Simpson said Queenslanders had already been hit with spiralling power prices after the Government sold energy retailers.

"The big winners in privatisation are over-paid executives and brokerage firms, while consumers are left to find the extra money for rising bills," Mr Simpson said.

Work meetings were already planned and a substantial fighting fund established, he said.

ASU secretary David Smith said the public had been repeatedly told the economy would recover.

"So there is no need to panic and start selling off things to fund a temporary problem," he said.

But the Queensland Resources Council backed a "careful and managed" asset sale program.

"The Government is signalling that it is not prepared to risk future growth for the sake of appearances, and for that it should be applauded," QRC chief executive Michael Roche said.

Ms Bligh warned unions that any potential strike action was likely to be illegal and they needed to realise the gravity of the situation Queensland faced.

She compared the asset sales to a household updating the family car.

"In a household if you want a new car, then you sell your old car," she said. "It is not unusual, in an environment where we want to build and buy new assets for Queensland, new trains, new roads, new hospitals, that we need to think about what we own and that process is happening right now."

[mufreight]

Having squandered the income from these assets and having mismanaged the state economy in a manner beyond belief Premier Bligh now wants to sell off publicly owned assets that provide an ongoing revenue stream reaching into the future.
Time for some rational thought, get rid of the spin doctors and hordes of advisors with vested interests and realise that these assets such as Power, Ports and rail belong to the people of this state and the Elected Government of the day are only the custodians of these publicly owned assets which provide services that the Elected Government of the day is obliged to provide for the votering population of this state.
When these are sold off and the income from these assets ceases what then Anna and how do you then propose to pay the bills and provide the services to the people of this state that you and your government are obliged to provide.

[ozbob]

From the Queensland Times click here!

QR services on the line

QR services on the line

Peter Foley | 26th May 2009

TRAIN transport lobby group Rail Back on Track has slammed plans to privatise QR, saying it would mean inferior passenger services.

Speculation is growing that the State Government will announce the sell-off of QR in the Budget on June 16.

Yesterday, Rail Back on Track spokesman Robert Dow described the proposed sell-off as a short-sighted decision.

?It's too valuable to sell,? Mr Dow said.

?QR continues to be a benefit to the Queensland economy and any short term gain would be a long-term loss because the transport shortfall would need to be made up elsewhere.

?We also believe there would be a degradation of services in terms of the public service component.

?What happens is they lose the public service component and concentrate on making money.

?We believe rural freight services would cease and we would have great concerns about local passenger service as well.

?It would be a retrograde step at this point. The rail network needs expanding. Privatisation would not see that happen.?

Rail union secretary Owen Doogan said the union was ?far from happy? with the QR privatisation proposal.

?In fact we are willing to campaign against it,? Mr Doogan said.

?It would affect jobs and this government is supposed to be supportive of jobs.

?There is also a terrible history of privatisation in relation to safety. In the UK, it led to a significant slip in safety and dozens of people being killed.?

Mr Doogan also questioned the timing of the government's consideration.

?I'm never going to support privatisation but to be doing it when the world is in a credit squeeze, they would be getting bargain basement prices. It's complete madness,? he said.

?It is also completely inappropriate for them to be talking about this now when there was no mention of it during the election campaign.?

A spokesman for Treasurer Andrew Fraser said the Treasurer ?does not intend to speculate on budget matters?.

[ozbob]

From the Courier Mail click here!

Unions angry at government plan to sell-off rail and ports

Unions angry at government plan to sell-off rail and ports
Article from: The Courier-Mail

John McCarthy and Tony Grant-Taylor

May 27, 2009 11:45am

LATEST: UNIONS are angry at a lack of consultation over the Bligh Government's plans to sell off railway, port and water assets.

Representatives at a Qld Council of Unions meeting today said there were a range of options open to members, including possible industrial action.

The meeting of 35 unions, representing about 350,000 workers across the state, was called in response to the government's privatisation plans as it struggles to find ways to plug the black hole in its coming Budget.

The unions say privatisation has failed wherever it's been tried, citing Telstra, the Commonwealth Bank, VicRail and overseas sell-off such as British Rail.

Privatsation "means higher prices, fewer services and job losses", the meeting was told.

Despite the State Government ruling out any sale of further electricity assets, the Electrical Trades Union said it's biggest problem was "stopping members going on strike".

A senior Government source yesterday told The Courier-Mail a sale of electricity assets, which consist of State Government-owned power stations and transmission lines, "was ruled out early in the Budget process".

And at least one culprit was the Rudd Federal Government's proposed carbon pollution reduction scheme -- and probably union pressure.

The decision makes it more likely that parts of Queensland Rail, some or all of the state's ports, the likes of SunWater and even the Queensland Investment Corporation could go on the auction block.

The Government source said that all the State's Government-owned corporations had been looked at in the Budget process, which, in Premier Anna Bligh's words, faces "a $14 billion revenue short-fall".

In relation to the state's power stations, however, the Government decided that it couldn't expect to get "fair value" at a time when the Federal Government was about to introduce legislation to bring in its carbon pollution reduction scheme, which is set to push up costs, particularly for coal-fired generators.

And as Queensland's coal seam gas industry gears up to potentially produce more and more electric power for domestic consumption, as well as liquefied natural gas for export, the Government apparently hopes future power needs will be met essentially by gas generators, which are less polluting.

The source said running the state's current "fleet" of coal-fired power stations in the current circumstances to the end of their economic life was a "reasonable strategy". But if electricity assets are off the auction block, the source said "all options" were on the table as the Budget process began, meaning at least parts of the Government's railway and port corporations may yet end up on the market.

The Beattie government sold off Queensland's electricity retailers in 2006 but retained the state's transmission system, run by Energex and Ergon.

From the Courier Mail click here!

Premier shortlists assets for post-Budget sell-off

Premier shortlists assets for post-Budget sell-off
Article from: The Courier-Mail

Steven Wardill

June 02, 2009 12:00am

A MASSIVE sell-off of state-owned assets will be unveiled today by Premier Anna Bligh, raising the Government billions of dollars and helping to reduce the Budget's deficit.

The Port of Brisbane, Queensland Motorways, Queensland Rail's coal haulage business and Forestry Plantations Queensland were all believed to be in the Government's sights for sale.

The decision to announce the sales before the June 16 Budget sets up a fiery confrontation with unions at this weekend's annual Labor conference in Brisbane.

Unions with workers affected by the sales have promised a well-financed campaign and industrial action in a bid to convince Ms Bligh to back down.

However, many interest groups and financial experts have backed the decision to sell assets which can still realise a prime price despite the tough economic times.

Labor MPs were briefed on the asset sale plan as well as the dire state of Queensland's finances during their regular Caucus briefing at Parliament House last night.

The scope of the asset sales are much more far-reaching than anyone expected and are aimed at ensuring the Government can meet its key election commitment to continue the $17 billion infrastructure program.

The sales also will raise the chances of Queensland regaining its triple AAA credit rating after agencies Standard & Poors and Moody's recently dropped the rating, costing the state millions in extra interest payments.

In its decision last month to drop Queensland's rating from AAA to AA1, Moody's cited the lack of a "medium-term strategy" to restore the Budget position as a key reason.

"The downgrade reflects the state's deteriorating financial and debt performance and the absence of a medium-term strategy that would, over time, restore budgetary performance and financial flexibility," Moody's said at the time.

The Government estimates its Budget will take a $5.6 billion hit from shrinking GST revenue streams alone over the next four years.

Combined with royalties, property taxes and other sagging revenue streams, the impact of the global financial crisis on the state's revenue streams has been estimated at $14 billion.

Ms Bligh and Treasurer Andrew Fraser have repeatedly warned they would have to take tough action to plot a path back to surplus, with many of decisions unlikely to be popular.

While Ms Bligh ruled out selling the electricity generators and distribution networks, she has insisted the Government would be selling assets to build others.

"In a household if you want a new car, then you sell your old car," she said last week. "It is not unusual, in an environment where we want to build and buy new assets for Queensland, new trains, new roads, new hospitals, that we need to think about what we own and that process is happening right now."

[ozbob]

Media Release 30 May 2009

Queensland:  Public ownership of QR is Queensland's 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 commuters has said the Queensland Government must resist the temptation for short term gains and not sell any off any of QR's rail assets or operations as part of the forthcoming budget. Instead look at what has  happened in Victoria. A partial privatisation of the suburban network in Melbourne has been a failure.  Even the Victorian Government has admitted that is no cheaper to operate as a private operation when compared to public ownership.  But the real success story is that of V-Line, the long haul train operator.  The Victorian Government brought back their regional rail network from a private operator Pacific National in 2007 and V-Line, the public operator, was tasked with control and responsibility of the rail network and now leads the nation in terms of a passenger rail renaissance.

Robert Dow, Spokesman for RAIL Back On Track said:

"We are at a critical juncture in transport planning for the future in Queensland.  General freight and passenger rail has languished in recent times in Queensland, whilst the bulk commodity rail industry has leaped forward. Now is the time to join the global rail renaissance in its entirety, it is not the time to sell off assets."

"V-Line is an excellent demonstration of what can be achieved under public ownership. They have dramatically increased their passenger numbers (1).  They have progressively increased the number of services with modern trains. For example, the Taralgon line had a 27% increase in passenger numbers in March 2009 alone.  Across all lines there was an average 20% increase."

"This was achieved by properly resourcing the rail network in terms of new trains and track infrastructure and matching those improvements with innovative fares and customer support. The state of Victoria is now well positioned to move forwards with safe, sustainable and affordable transport for the future."

"It is little wonder that Victoria received the lion's share of the Infrastructure Australia funding for rail recently announced by the federal government.  They are actually doing something positive."

"We can achieve the same here in Queensland.  The aging Travel Train carriage fleet should be upgraded with new diesel mechanical units similar to the VLocity units in Victoria (2).  These units could be used on regular runs throughout Queensland.  Regular commuter services could also be introduced from places such as Gatton, Helidon, and eventually Toowoomba and similarly from Gympie North and Maryborough.  Apart from the long haul Travel Train services more local rail services for all the major provincial cities in Queensland could also be achieved."

"A sell off now of our rail assets will condemn Queensland to failed state status for eternity."

Reference:

1.  http://www.vline.com.au/media/news/MediaReleases/989077905/Article.aspx
2.  http://www.vline.com.au/about/ourfleet/vlocity.html

Contact:

Robert Dow
Administration
admin@backontrack.org

[ozbob]

It would be idiotic to flog off the coal haulage business.   A long term income stream lost!!

I think there will be some very significant industrial action looming on many fronts.  Labor was elected to govern not sell off the Queensland taxpayer's assets.  Flogging off stuff only leaves the state (and the tax payer) asset poor and subject to increased costs and failings.  The electricity flog off is a great example in Queensland of why we should be very concerned.

Brainless!!

[ozbob]

From the Brisbanetimes click here!

Premier to put Port of Brisbane, QR, motorways up for grabs

Premier to put Port of Brisbane, QR, motorways up for grabs

Marissa Calligeros and Christine Kellett
June 2, 2009 - 8:44AM

Queensland Premier Anna Bligh is poised to announce her plans to sell-off state-owned railway, port and forestry assets in a desperate bid to plug a black hole in the upcoming state budget today.

The Port of Brisbane, Queensland Motorways, Queensland Rail's coal haulage business and Forestry Plantations Queensland are tipped to be put up for sale when the Government hands down the state budget on June 16.

Premier Bligh is expected to begin outlining the massive asset sale in State Parliament today.

Labor MPs were reportedly briefed on the dire state of Queensland's finances and the government's plan to raise the billions of dollars needed to help reduce the Budget's deficit last night.

Yet the scope of the asset sales may be more far-reaching than anyone expected in order to uphold the Government's key election promise - the $17 billion infrastructure program.

The proposed sale has enraged unions angry at a lack of consultation with the Bligh Government.

They have not ruled out lengthy and extensive industrial action.

The unions say privatisation has failed wherever it's been tried, citing Telstra, the Commonwealth Bank and VicRail.

Transport lobby group Rail Back on Track has blasted a planned move to sell off parts of Queensland Rail to European companies as a "short term cop out", which it says will compromise passenger and freight services.

Citing the example of Victoria, which privatised its regional network but bought it back in 2007 to increase passenger numbers, group spokesman Robert Dow said QR was profitable.

"While most countries around the world and most states in Australia are expanding their networks, the Queensland Government is going backwards.," Mr Dow said.

"All we need to do is look at Queensland's experience with privatising electricity, which has been a sour one. Governments need to manage these assets, they are taxpayer assets.

"It might reduce the size of the deficit for a short period of time but it is not a model for sustainability."

Mr Dow said reducing spending and riding out a budget deficit was a better approach than a asset sale.

"I think this shows the bad fiscal management of this government over a number of years. Instead of investing in infrastructure much earlier, they have maxed out the credit card on water projects."

RACQ external relations manager Gary Fites said scrapping the state's fuel subsidy scheme would drain the pockets of Queensland motorists far more quickly than the sale of Queensland Motorways.

"If the government scrapped that subsidy it would have an even wider impact on Queensland motorists across the state," Mr Fites said.

"In the event of any sale of the motorways we would want to ensure that we could maintain flexibility in the way that motorways are operated so that down the track toll roads could be converted to shadow tolling, where the private owner bills the government."

[ozbob]

From the Brisbanetimes click here!

Queensland asset sales to reap $15 billion

Queensland asset sales to reap $15 billion

June 2, 2009 - 10:32AM

Queensland Premier Anna Bligh has confirmed plans to sell-off state-owned railway, port and forestry assets in a desperate bid to plug a black hole in the upcoming state budget.

Ms Bligh announced in State Parliament this morning the Port of Brisbane, Queensland Motorways, Queensland Rail's coal haulage business, including the Abbot Point Coal Terminal, and Forestry Plantations Queensland will be sold in a bid to raise $15 billion needed to help reduce the budget's deficit.

Under the Bligh Government's "Renewing Queensland Plan" the assets will be sold over the next three to five years in a bid to fill the coffers and avoid a further $12 million required in future capital investment in those business over the same time frame.

Ms Bligh said proceeds will represent a benefit to taxpayers of nearly $30 billion, although the State Government will forgo annual estimated returns of about $280 million per year as a result of the staggered sales.

"Options of the sale of Queensland Rail's bulk freight and regional freight services will also be investigated and offered to market in the most appropriate sensible way," Ms Bligh told Parliament.

"Further we will commence negotiations with the Commonwealth for the sale or lease of Queensland Rail's regional below track network to Commonwealth-owned Australian Rail Track Corporation."

"Like other bold measures this plan will invite intense debate and public opposition," Ms Bligh said.

More to come...

"Options of the sale of Queensland Rail's bulk freight and regional freight services will also be investigated and offered to market in the most appropriate sensible way," Ms Bligh told Parliament.

"Further we will commence negotiations with the Commonwealth for the sale or lease of Queensland Rail's regional below track network to Commonwealth-owned Australian Rail Track Corporation."

This doesn't bode well for the future at all.  As I commented to Brisbanetimes times this morning ...

[ozbob]

From the Brisbanetimes click here!

$15 billion? Tell 'em they're dreamin'

$15 billion? Tell 'em they're dreamin'
Christine Kellett
June 2, 2009 - 12:51PM

Questions have been asked over whether the Queensland Government will be able to raise $15 billion from the proposed sale of state assets announced by Premier Anna Bligh in Parliament today.

In a move designed to plug a looming budget deficit, the government will sell off the Port of Brisbane, Queensland Motorways, Forestry Plantations Queensland and Queensland Rail's coal haulage arm, including the Abbot Point Coal Terminal, near Bowen.

It will also scrap the fuel subsidy by July 1 to save a further $500 million a year.

However, doubts have been raised about the ability of the government to secure the right price for the assets in the middle of a global economic downturn.

University of Queensland economist Professor John Quiggin described the $15 billion price tag as ''optimistic'' and said the government would likely struggle to generate enough interest in the assets.

There is speculation companies in Germany and France have shown interest in buying up Queensland Rail's profitable coal freight business.

''I would have thought $15 billion in the current environment would be hard to realise, but that does depend of course on the conditions of the sale,'' Professor Quiggin told brisbanetimes.com.au.

"For that kind of price you would want a very competitive bidding process with a number of bidders lined up. Attracting enough interest at the moment may be a problem. The government would also have to be prepared to take the assets off the table if they can't get the right price... otherwise, there is a perception that the whole thing has been a failure."

Professor Quiggin said while the pendulum had swung away from mass privatisation, popular in the 1980s and 1990s, back towards the security of government ownership, there were exceptions.

"There is a case for privatisation of assets where a monopoly is apparent, as in the case of the Port of Brisbane.

"With Queensland Rail, we will have to wait for the details and whether it would be sold as an integrated business.

"What I hope we will start to see is a debate on the social outcomes, rather than an ideological one on whether government or private ownership is better."

[mufreight]

Who gave this incompetent and inept government the authority to sell of publicly owned infrastructure.
Once sold off the private operators these operators will to ensure a profit raise charges which the public will pay then when as has been the case in Tasmania and Victoria these private operators fail to maintain this infrastructure to the point where it is unusable then the government has been forced to buy back the infrastructure at a price in excess of what they received when the infrastructure was sold and then spend more public funds to restore it to a condition fit to provide services that the elected government is obliged to provide.
Considering the track record of the current government one must question what processes are avaliable to the voters of this state to force the resignation or sacking of this government and a new election to be called so that the voters of this state can decide as to if this proposed course of a government comprised of members incapable of administering and accounting for their electoral allowances to sell off these public assetts is acceptiable or not.

[stephenk]

So this fire sale will raise $15b. Hmm, this is similar to the cost of the inner city rail capacity project. Is this project, and other public transport infrastructure projects likely to see any improved funding as a result of this fire sale?

[Arnz]

Hold it a minute.  The Qld Gov is looking at selling the "profitable" parts of QR off (eg the coal haulage and freight business). 

From my understanding, the "subsidised" parts of QR (QR Passenger Citytrain and Traveltrain) will not be on sale.  Also, the track infrastructure (state-wide) would probably be likely to remain in state control.

However, I gotta question where is the money coming to subsidise "QR Passenger", with the profitable parts of QR possibly being up for sale.  Another source of cash will have to come from somewhere to keep up propping Citytrain and Traveltrain if QR Coal/QR National/etc is to be sold off.

[ozbob]

From the Courier Mail click here!

Unions fight Bligh's assets sell-off

Unions fight Bligh's assets sell-off
Article from: The Courier-Mail

John McCarthy and AAP

June 02, 2009 02:36pm

UNIONS will fight the State Government after it announced it would sell the Port of Brisbane and other assets as it tries to fill a $14bn budget hole.

As revealed in The Courier-Mail today,  much of the state's rail network, its forestry interests and the Gateway motorway will also be sold off.

However, Premier Anna Bligh has told state parliament Queensland Rail's passenger services will be retained.

Queensland Council of Unions general secretary Ron Monaghan said there had been insufficient debate on the planned sell-off.

"We are in dispute with the Bligh government over this issue," he said.

"There will be an ALP conference on the weekend.

"I think they'll make a decision on this which will say that public assets of Queensland should stay in Queensland hands.

"We weren't ready for the scale of this announcement."

Ms Bligh said the government was given a clear mandate at the last election.

"The global recession has confronted us," she said.

"The crushing tragedy of unemployment is known today by more than 114,000 Queenslanders.

"As each month goes by the reality of global recession visits more households across the state.

"Government has resolved to undertake a package of strategic asset sales designed to secure the future of a number of commercial assets without the ongoing need of public investments."

The premier told the house the sales will free the government's balance sheet to better support the development of public infrastructure like schools, hospitals, public transport, public housing and roads.

"Our Renewing Queensland plan will restructure our asset portfolio with the sale of Queensland Motorways Limited, the Port of Brisbane Corporation, Forest Plantations Queensland, Queensland Rail's above and below rail coal business and the Abbot point coal terminal".

Ms Bligh said she realised many in the community, including many in the union movement, would instinctively oppose the sale of these assets.

"To those with concerns, I would encourage them to look at the success of Qantas since it was privatised in 1995," she said.

"It is not a dissimilar asset to Queensland Rail".

These are long term structural changes to our asset base which will will permanently improve the state's balance sheet and better align to current priorities," she said.

Labor's state president and secretary of Amalgamated Manufacturing Workers Union Andrew Dettmer said he was shocked and disappointed by the decision and promised the State Government it would face a showdown at this weekend's ALP conference.

He accused the Government of dealing with a short term economic downturn with a solution that would create long term problems that included giving major mining companies complete control of regional economies by owning the mine, the rail and the port.

"Would you want Rio Tinto or BHP in charge of everything to do with your economy from pit to port," Mr Dettmer said.

"They are not exactly the employer of choice. Their immediate reaction to the economic downturn is sack thousands of workers."

He said the decision showed a lack of respect for the Labor Movement because it would force members to consider and make a decision on privatising QR's freight in less than a week despite that fact that it would take two or three years to sell it.

He said the Government was certain to face a series of resolution from the floor of the ALP conference condemning its action.

"It's something that has not been considered.

"Even if you are of my mind that the disposal of public assets is ill-founded and ill considered public policy you would have to look at what it means."

He said QR was often the only major employer in regional Queensland and by selling it the Government was selling off its ability to have control over regional economies.

He also expected there would be significant job losses in rail while selling ports would mean the Government would lose control of a key union asset.

ACTU president Sharah Burrow said there had never been a successful privatisation of rail anywhere in the world and the decision would cause enormous concern for workers.

[ozbob]

From the Brisbanetimes click here!

Read your own policy on selling assets: opposition

Read your own policy on selling assets: opposition
Tony Moore
June 2, 2009 - 5:43PM

The Queensland Opposition this morning pushed the ALP's own policy into its face, quoting anti-privatisation sections from Queensland Labor's 2008 State Platform document to reject plans for the privitisation of state-owned assets.

The policy document, under the section Economic Principles, states that "Labor rejects a program of privatisation of public services such as public hospitals and schools, public enterprises including subsidiary companies or utilities (in particular rail, ports, public hospitals, electricity and water) as an economic strategy".

The document also contains the phrase "privatisation of public enterprises should not be used to solve revenue problems of governments".

Opposition Leader John Paul Langbroek questioned why the Labor Government did not outline its plans before the last election and accused the Government of mismanaging the economy.

"Labor is blaming everyone and everything but themselves when the reality is they clocked up massive debt and mismanaged the State Budget before the global financial crisis had even been heard of, leaving Queensland vulnerable when times turned bad," he said.

He said the Queensland Government had built up a debt of $74 billion.

Mr Langbroek said the decision to scrap Queensland's 8.4 cents a litre fuel subsidy amounted to introducing a fuel tax.
"A fuel tax will cost jobs in tourism, construction, agriculture and transport industries, and it will hit every Queensland family in the hip pocket at a time when they can least afford it," he said.

Premier Bligh this morning acknowledged she would face difficulties at this weekend's ALP conference, but said Labor Caucus had backed the privatisation plan.

"That means we will be bring legislation into the Parliament as a result of that."

"I hope to bring the Labor Party with me as we work to modernise Queensland. We want to be a government that equips Queensland for the future and has our feet firmly in the 21st century.

"My job is to work hard to persuade conference, but ultimately I was elected to put in place the arrangements Queenslanders need - and that is what I will do."

[ozbob]

Media Release 3 June 2009

Queensland:  Public ownership of QR is in the State and Nation's best interest

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport commuters has said the Queensland Government must resist the temptation for short term gains and not sell any off any of QR's rail assets.  QR has already started to operate on a national level.  Privatisation of railways has been an abject failure in Australia and overseas.  Many Governments have been subsequently forced to buy back assets that have been gutted and neglected by the private operators at great economic loss and damage to economies and social well being (1).  To do the same in Queensland is nothing short of madness.

Robert Dow, Spokesman for RAIL Back On Track said:

"Rather than sell off the hard won taxpayer assets we should be building up our assets for a sustainable future."

"It is absolute folly to sell off parts of QR, particularly those parts that actually gain considerable revenue for the state.  It makes no sense at all."

"These proposed asset sales will condemn Queensland to a social and economic back water status.  There is a rail revolution happening elsewhere in Australia and globally as smart Governments position their constituents for a sustainable future.  Queensland is fast becoming a failed state!"

Reference:

1.   http://backontrack.org/mbs/index.php?topic=2341.0

Contact:

Robert Dow
Administration
admin@backontrack.org

[ozbob]

From the Brisbane times click here!

Bligh destined for Labor Party fight

Bligh destined for Labor Party fight
Conal Hanna and Tony Moore
June 3, 2009 - 5:00AM

Anna Bligh's decision to privatise $15 billion of State Government assets has set the scene for a showdown with rank and file members at this weekend's Labor state conference.

The Premier's problems can be summed up in one sentence from the current state platform document, agreed to just one year ago.

"Privatisation of public enterprises should not be used to solve revenue problems of governments.''

Ms Bligh and Treasurer Andrew Fraser yesterday trampled on that sentiment, announcing the sale of five government assets - Forestry Plantations Queensland, Queensland Motorways, Port of Brisbane Corporation, Abbot Point Coal Terminal and Queensland Rail's coal and freight arms - as they seek to address plunging revenues caused by the global financial crisis.

The government predicts the sales - to take place over the next five years - will raise $15 billion in revenue and save $12 billion in planned capital outlays.

But it has raised the prospect of ugly clashes at this weekend's state conference, reminiscent of then NSW premier Morris Iemma's humiliating defeat at the hands of ALP members last year over the privatisation of electricity assets.

Delegates there voted 702 to 107 against Mr Iemma's planned electricity privatisation. He refused to buckle, but was ousted as premier by parliamentary colleagues months later.

Queensland Council of Unions general secretary Ron Monaghan said yesterday he expected vigorous debate this weekend.

"We only learnt on (Monday) night the extent of which assets were on the table and we were quite frankly gobsmacked,'' Mr Monaghan told brisbanetimes.com.au.

"There wasn't a debate and a discussion to agree on a position. They are saying `We must do this'.

"But there is a policy in the ALP and it says we in the Labor Party don't do these things.

"That resolution was debated on the floor of the conference. Why has it not been adhered to?"

The Queensland Labor State Platform Document 2008 reads: "Labor rejects a program of privatisation of public services, such as public hospitals and schools, public enterprises including subsidiary companies or utilities (in particular rail, ports, public hospitals, electricity and water) as an economic strategy.

"Privatisation of public enterprises should not be used to solve revenue problems of governments."

Premier Bligh said while she would work hard to convince fellow ALP members of the merits of the plan, the decision had already been made.

"Caucus yesterday resolved to support the government's program," Ms Bligh said.

"That means we will be bringing legislation into the Parliament as a result of that.

"My job is to work hard to persuade conference, but ultimately I was elected to put in place the arrangements Queenslanders need and that is what I will do."

ACTU president Sharan Burrow described the sale as a "short term approach" while the state's ALP president Andrew Dettmer said it was "tragic".

"Disappointment is probably the least of the emotions that crossed my mind,'' Mr Dettmer, who is also state secretary of the powerful Australian Manufacturing Workers' Union, said.

"Over 100 years of public policy is going to be disposed of inside the life of this Parliament.

"I think that that's tragic for Queensland.''

Recognising the economic difficulties the Government faces, Mr Dettmer is trying to act as peacekeeper ahead of the weekend.

"I'm hopeful there will be some significant discussion this week and we don't have a situation arising where there's major disagreements, either on the floor of conference, in the community, or potentially even in parliament," he said.

But based on other sentiments expressed yesterday, it might well be wishful thinking.

- with AAP

[mufreight]

Seems like Captain Bligh is set for a repeat of the Mutiny of Queensland.
Could well be that this will be the trigger for the Captain to walk the plank a poll conducted by a TV station gave a resounding NO to the sell off with 97% of over 4000 respondents giving it the thumbs down.
If that transfers through to votes then the government is destined for oblivion. 

[ozbob]

Our Renewing Queensland Plan

Premier Anna Bligh has detailed her plan to renew Queensland's finances and reshape the State's economy.

--> http://www.thepremier.qld.gov.au/initiatives/renewing/index.aspx

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


http://www.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=64179

Joint Statement:

Premier and Minister for the Arts
The Honourable Anna Bligh

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser

Tuesday, June 02, 2009

QR sale WILL PROTECT PASSENGER SERVICES AND CAPITAL BUILDING JOBS

Premier Anna Bligh has said the sale of Queensland Rail?s non passenger assets will protect the State?s capital building program and thousands of jobs from the worst effects of the global financial crisis.

Ms Bligh said the sale means passenger service assets will stay in Government hands while the sale of QR coal, freight and other assets will contribute more than $7 billion to state coffers.

"It also means the Queensland taxpayer will not have to contribute an estimated $7 billion in future capital expenditure on QR infrastructure," said the Premier.

"Of that money around $500 million would have been used to build rail infrastructure outside of Queensland as part of the company?s interstate freight business.

"Now, more than ever, we need these jobs and this money at home as we continue to create jobs with the largest capital building program in Australia.

"We will retain in Government ownership and control all passenger rail assets in our State."

The Premier said that passenger rail services played an increasingly important part in the role of Government.

"Passenger rail is an essential public service and public services cannot be run solely to make a profit," she said.

"We will not only retain control of Queensland Rail?s passenger services but we commit to restructuring and improving these services in the years to come.

"The sale of these QR assets is the right thing to do and now is the right time to do it," said Premier.

"It means Government can concentrate on delivering world class passenger rail services and continue to build the roads, rail, schools and hospitals that Queensland needs.

"The global financial crisis has driven a $14 billion locomotive through State finances and the QR sale will contribute to repairing that damage.

"This will make a massive contribution to restoring our AAA credit rating and keeping the Queensland economy strong."

Treasurer Andrew Fraser said the sale means projects such as the $800 million Darra to Springfield Transport Corridor and the $324 million Robina to Varsity Lakes Rail Extension will be finished.

"These projects alone are creating around 6000 jobs and our record capital building program is creating many thousands more," he said.

Mr Fraser said the sale of QR assets would not include passenger services in any way.

"We are retaining control of passenger services and we will be able to continue to invest in new services, new trains and new infrastructure because of this sale," he said.

"In the long term, a privatised Queensland Rail would be a stronger more sustainable business that will continue to grow and create jobs in Queensland.

"Qantas Airways has expanded its workforce by 24% since privatising in 1995 because it became a stronger and bigger business. The same can happen with a new QR.

"This is the right time to sell because these QR assets need investment to grow and the private sector can make that investment to allow QR to reach its great potential."


Media contact: 07 32244500

[Jon Bryant]

Sorry to diasagree with other postees but I think the sale should have been done long ago.  The demise of rail in this country has occured whilst in the hands of the Government.  Since the private sector has been involved in operations there has been great improvements in service, well as much as the ailing infrastructure has allowed anyway.  In addition, where the private sector has built the infrastructure the standards is world class.  These operations will become more efficient and will drive to improve services and volumes handled, etc.  

I think investigating the handing of below rail assets to the ARTC is also to be applauded as this will allow the Federal Government to manage/invest in the assets where of national significane.

[brad C]

Couldn't agree more Jon B
Anyone with an once of grey matter would have predicted the full privatisation of the QR 'business units' following corporatisation. In fact it has been operating in this mode for some time.
Consider also that if privatisation and other party access had not occurred on the national scene and in southern states, where would QR National's interstate operations be today?
Efficiency and profits do not come from a top heavy bureaucratic structure (Look at Citytrain for a good example of inefficiency).
Also compare the operations of PN on the QR system and the consists of their trains in comparison to QR's.

One hopes that this time the promised re-structuring of the passenger arm of QR will occur (unlike the rhetoric sprooked at the genesis of the Translink Transit Authority which still has not occurred.) We need a genuine attempt at a SEQ Transit Authority to drive efficiency and integration.

Will be interesting to see what will be the carve up of the loco fleet and existing orderes for both DEL and EL's.
Would be great to see some 39's returned for NCL passenger workings.

[ozbob]

No worries Jon.

Governments have failed to resource rail properly because of the distortions of the roads and the road lobby.  This is the fundamental issue.  Setting up a proper rail network is a lot more cost effective for the long term.  There are high initial infrastructure costs but the pay off goes on for a very long time.  The Australian electoral cycle is also to blame for short term fixes.

Selling of QR Freight and Coal at time when there is unlikely to be any real competition is not realising the assets at all.  QR is already operating nationally as QRN, this will come to an end.  They run the freight network in WA for example, they are effectively operating as a private enterprise now.  Left to move forwards they would become the centre diamond in Queensland's economic crown.  All to be thrown away for short term debt reduction, and loss of long term revenue.

The experience of privatisation of rail in this country has not been a happy one.  Private operators have run the networks into the ground, made their money and then moved on, and again left the taxpayer to pick up the pieces.  QR has changed a lot as now GOC.  Just as they are really start to make big improvements and changes they are being sold?

ARTC is federal government GOC.  This is still public, but whether they will take QR rural networks on is another matter entirely.  I understand the urban/interurban networks will be  under the management of QR Passenger, as QR Freight QR Coal and QR Network will cease to exist under the Bligh plan.

I doubt whether these sales will be achieved though, there seems to be too much opposition, public and with the labor party factions and unions.

This weekends labor conference will be interesting.

[ozbob]

The Minister for Transport contacted me yesterday.  The Minister emphasised that passenger services will be moving forwards, a point made in the Premier's Statement above.   That is something.  I was waiting for the Premiers statement to be made available before commenting.

I have concerns for rural freight services and Travel Train services, and indicated to the Minister those concerns.  The coastal runs will probably survive.  I cannot see the Westlander being around as a loco-hauled train for much longer.  SOTO and the Inlander?  Who knows ... Perhaps DMUs would be a better option.

QR Passenger will survive, and if the rhetoric can be believed will continue to be increasingly resourced to do the job.

If the sales go ahead the overall effects will be a reduction in rail services, in some cases cessation and yet more freight on roads, with the commensurate damage, health costs and environmental damages and costs.  We will be a sustainable transport poor state.  Queensland will be very exposed to fuel price (oil) pressures.  Other states are ramping up rail, Queensland will be going backwards and will be left behind.

It will be a very interesting time the next few months ...  will Premier Bligh go the same way as the ex-Premier of NSW who tried to sell off the power stations?

[ozbob]

I thought this blogger at Brisbanetimes has summed it up very well ...

Brisbanetimes click here!

Selling a profitable business to make up for a short-term, manageable shortfall is the height of financial iresponsibility. Even worse is to sell an asset (Queensland Rail) which provides vital transport services. Selling QRs coal-haulage business is just the tip of the iceberg. THe mooted option of selling or leasing the track itself to the ARTC is thievery. The ARTC has shown itself to be incapable of maintaining anything other than heavy-haul mainlines, which means more branch lines will close, reulting in yet more heavy trucks on the roads, creating more congestions, more delays, higher costs, and more pollution.

One only needs to look south and east to see the complete disasters that have resulted from the Privatisation of state-owned railways: New Zealand is buying the railways back, NSW and Vic are doing the same, PN has put the entire rail network (foremerly profitable, pre-privatisation) in Tasmania up on the auction block. Passenger srvices have suffered, freight costs have gone up, and maintainence has gone down.

Despite not being privately-owned, QR has expanded beyond the state borders to beome one of the top two rail haulage businesses in the country. And now, after having put all the effort in, the Government want to not only sell it, but sell it at the worst possable time.

We only need to hang onto the railways for a few more years. Peak Oil combined with the global financial crisis will see the cost of transport (good and people) by road and air rise to unaffordable levels. Rail, being much more fuel efficient, is perfectly placed to provide the services road- and air-based transport will no longer be profitably be able to supply.

Selling the railways is a bad idea environmentally, economically, and socially.

[ozbob]

Joint Statement:

Premier and Minister for the Arts
The Honourable Anna Bligh

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
02/06/2009

QR sale WILL PROTECT PASSENGER SERVICES AND CAPITAL BUILDING JOBS

Premier Anna Bligh has said the sale of Queensland Rail's non passenger assets will protect the State's capital building program and thousands of jobs from the worst effects of the global financial crisis.

Ms Bligh said the sale means passenger service assets will stay in Government hands while the sale of QR coal, freight and other assets will contribute more than $7 billion to state coffers.

"It also means the Queensland taxpayer will not have to contribute an estimated $7 billion in future capital expenditure on QR infrastructure," said the Premier.

"Of that money around $500 million would have been used to build rail infrastructure outside of Queensland as part of the company's interstate freight business.

"Now, more than ever, we need these jobs and this money at home as we continue to create jobs with the largest capital building program in Australia.

"We will retain in Government ownership and control all passenger rail assets in our State."

The Premier said that passenger rail services played an increasingly important part in the role of Government.

"Passenger rail is an essential public service and public services cannot be run solely to make a profit," she said.

"We will not only retain control of Queensland Rail's passenger services but we commit to restructuring and improving these services in the years to come.

"The sale of these QR assets is the right thing to do and now is the right time to do it," said Premier.

"It means Government can concentrate on delivering world class passenger rail services and continue to build the roads, rail, schools and hospitals that Queensland needs.

"The global financial crisis has driven a $14 billion locomotive through State finances and the QR sale will contribute to repairing that damage.

"This will make a massive contribution to restoring our AAA credit rating and keeping the Queensland economy strong."

Treasurer Andrew Fraser said the sale means projects such as the $800 million Darra to Springfield Transport Corridor and the $324 million Robina to Varsity Lakes Rail Extension will be finished.

"These projects alone are creating around 6000 jobs and our record capital building program is creating many thousands more," he said.

Mr Fraser said the sale of QR assets would not include passenger services in any way.

"We are retaining control of passenger services and we will be able to continue to invest in new services, new trains and new infrastructure because of this sale," he said.

"In the long term, a privatised Queensland Rail would be a stronger more sustainable business that will continue to grow and create jobs in Queensland.

"Qantas Airways has expanded its workforce by 24% since privatising in 1995 because it became a stronger and bigger business. The same can happen with a new QR.

"This is the right time to sell because these QR assets need investment to grow and the private sector can make that investment to allow QR to reach its great potential."

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

[Jon Bryant]

We should follow the US model where the smaller/branch lines are operated by local companies that feed/support the major tunk line and their is a profit sharing deals (I assume).  The reading I have done show that they are profitable and the local communities recieve a lot in return as well.  The idea that we have to have massive rail companies managng the entire system does not work.

[ozbob]

The blog at the CM has a huge number of responses.  Seems the majority is definitely not in favour of the sales.

--> http://www.news.com.au/couriermail/comments/0,23836,25578138-3102,00.html



E-petition at Qld Parliament against the sales -->

http://www.parliament.qld.gov.au/view/EPetitions_QLD/CurrentEPetition.aspx?PetNum=1243&lIndex=-1

[ozbob]

From the Queensland Business Review click here!

Infrastructure 'fire sale' dangerous, LNP says

Infrastructure 'fire sale' dangerous, LNP says

The Queensland Liberal-National Party has accused Premier Anna Bligh of throwing away the State?s future, after her government admitted Queensland Rail and the Port of Brisbane may have to be sold to make up for a $14 billion loss in revenue.

Opposition spokeswoman on transport Fiona Simpson says the possibility of selling two of Queensland?s biggest assets was concerning, given history showed there was a need to reinvest in the organisations.

?This isn?t the silverware they?re looking at selling off to pay their $74 billion of debt- it?s the working machinery of government which is strategically important for future generations,? Simpson says.

?There is a great danger in debt- laden governments fire selling transport infrastructure which is vital for Queensland?s supply chains, now and into the future.

?These assets need re-investment to future proof Queensland, not a fire sale.?

Bligh?s comments over the weekend came after Transport Minister Rachel Nolan told parliament on May 21 Queensland Rail was not for sale.

?I think the people of Queensland can feel confident that it would be far more likely that a conservative government in this state would offer up Queensland Rail,? Nolan says.

Anna Bligh?s office did not respond to questions from ATN

[ozbob]

Opposition Media Release

Transport Minster misleads Parliament on budget ?fire sale?

Fiona Simpson MP

25 May 2009

Transport Minister Rachael Nolan has been accused of misleading Parliament after the Premier left the door open to sell-off QR and other state assets only days after the Minister denied it.

Shadow Transport Minister said the future of Queensland Rail workers? jobs was blowing in the wind with revelations state assets could be sold to prop up the Bligh Labor Government?s ailing Budget.

"How can you trust a Premier to manage the State?s finances and transport infrastructure when she wants to flog off state assets and use bad weather as her excuse?" Ms Simpson said.

"New Transport Minister Rachel Nolan has to explain her boss? about face on the possible sale of Queensland Rail.

"Ms Nolan was very emphatic in Parliament only five days ago. Does she agree with the Premier that everything is on the table including the sale of Queensland Rail?

"Minister Nolan has either misled Parliament or doesn?t have a clue what is going on in her portfolio."

Ms Simpson said the State Government should be looking to build for Queensland?s future beyond the current economic downturn.

"This isn?t the silverware they?re looking at selling off to pay their $74 billion debt ? it?s the working machinery of government they are looking at selling at the bottom of the market.

"There is a great danger in debt laden governments pursuing a fire sale of transport infrastructure assets which are vital for Queensland?s supply chains."

MEDIA NOTES:

Hansard: May 21, 2009.

Ms SIMPSON: My question is to the Minister for Transport. Has the minister been advised of any proposals to consider or prepare Queensland Rail or any of its components for sale, including negotiations on likely redundancy packages for QR staff?

Ms NOLAN: Queensland Rail is not for sale. I think the people of Queensland can feel confident that it would be far more likely that a conservative government in this state would offer up Queensland Rail and fail to protect its workers.

Ms Struthers: And QBuild.

Ms NOLAN: And QBuild. I think the answer on this is cut and dried. As we have said here, we will take responsible economic decisions to deal with these difficult times. As I have said now, Queensland Rail is not for sale.

http://www.parliament.qld.gov.au/view/legislativeAssembly/hansard/documents/2009.pdf/2009_05_21_DAILY.pdf

[ozbob]

From the Courier Mail click here!

Unions demand to know where MPs stand over assets sale

Unions demand to know where MPs stand over assets sale
Article from: The Courier-Mail

By Steven Wardill

June 04, 2009 12:00am

A LABOR MP has been praised for defying Premier Anna Bligh over asset sales and others have been warned they will eventually have to state where they stand.

Queensland Labor president Andrew Dettmer yesterday commended Waterford's Evan Moorhead for voting against the suite of asset sales during Monday's caucus meeting.

Mr Dettmer, who is also head of the Australian Manufacturing Workers Union, said Mr Moorhead had shown he was willing to stick up for employees set to be adversely affected by the sales.

A former researcher with the AMWU, Mr Moorhead and Bundamba's Jo-Ann Miller were the only two MPs to vote against the plan to sell assets, including Queensland Rail's coal arm, the Port of Brisbane and Queensland Motorways.

"He did a great job representing workers when he worked for us and he is doing a great job representing workers in the Parliament," Mr Dettmer said.

Labor MPs are under mounting pressure over the asset sales, with the issue set to come to a head at the party's state conference in Brisbane this weekend.

Unions predominantly from Premier Anna Bligh's own Left faction are expected to put forward resolutions condemning the sales as a short-sighted solution.

Amid an Opposition attack, Ms Bligh continued to deny claims she knew before the election that she planned asset sales but failed to tell Queensland's voters.

"I was very clear that when it came to making the tough Budget decisions, my number one priority would be the building program and jobs," she said.

"That was it: jobs and the building program. That is what our decision yesterday does."

However, unions are demanding details of what Labor MPs actually agreed to in caucus, as well as a meeting with Ms Bligh before the conference.

Australian Services Union secretary David Smith said the Government's proposal would hurt thousands of workers, narrow the state's revenue base and do little for the economy.

"And once you start this process it doesn't end," he said.

Mr Smith said Labor MPs were "all a bit quiet" but would eventually be forced to state their own positions ahead of the next election.

"If we are still in the same position as we are now I would be asking them where each of them sat," he said.

[Fares_Fair]

To put it simply, it is indeed a very sad day for this so-called 'smart' state
(funny- they aren't using that cliche now), when they have to sell the cow to buy the milk.

It's beyond my comprehension why the member for South Brisbane, and Premier Ms Bligh
is selling income producing operations for short-term gain.
There won't be much more left to sell the next time that hard-ship comes.

It can only be a sign of a government that squandered it's riches during boom times,
and, as we discover every day, never planned for the bad - be it water, electricity, transport, health or education.

Why would they sell off the money-making Coal Freight ventures and keep the heavily subsidised
(income negative) QR passenger sector. It will only make things worse, won't it ?

I would hope for a more experienced Treasurer than young MP Andrew Fraser, if one can be found.

Ms Premier and Mr Treasurer : think hard and find better solutions !

Regards,
Fares_Fair

[david]

I have an idea...

We should all propose transport projects that we would be willing to forego/delay (possibly indefinitely) to save QR from privatisation. Also, any other ideas to raise money/cut costs would be good. I know that this may be a bad idea, due to the exponential growth of Brisbane and the lack of infrastructure, but during tough times we (and the government) should really put our thinking caps on, instead of reaching out and selling the first thing we can think of that will make lots of money.

I'll start the ball rolling.

I believe that the Eastern Busway project should be reconsidered, as it basically duplicates an underutilised Cleveland line. The first stage of it is too costly, resumes too many properties and doesn't even go that far. The solution, imo, would be to add extra train services to the Cleveland line, and removing the Park Road-Manly express services, to allow more services to be slotted in (either all-stations or a different express pattern).

Also, I believe that there is a lot of airspace, potentially worth quite a bit, hanging above our train stations just waiting to be used. Perhaps the government should consider selling it off/leasing it to developers to build TOD's. This would also be good future planning. I suggest Taringa (and perhaps even Auchenflower) as a prime example on the Ipswich line.

I realise that this alone will not raise $7 billion to match the "price" of QR, but as more suggestions come in, we might just be able to present a reasonable case to prevent QR's privatisation.