Qld Budget 2009 Asset Sales - articles and discussion

[somebody]

the only problem is that people don't always know whats best for them.

This argument is not valid.  It's the whole basis of our form of Government that trusting people to know what's best for them is better than anything else that's been tried.

only since the Hawke government has that really come to the for. Before that it was not the case at all. I consider it a valid argument. People often don't know what is best for them and they also love to over-simplify things when they aren't always simple black and white matters.  

To be reasonable and fair I will allow anyone here to provide a solution. I will then let you know if your solution covers the entire situation. I personally would be surprised if it does. I don't say that to be nasty but it is easy to sit back and complain yet if we were serious wouldn't we be offering a solution. I haven't seen one of those yet.

When I said "our form of government", I was referring to democracy in general, not anything more specific than that.

[ozbob]

From the Queensland Times click here!

Minister was kept in dark

Minister was kept in dark

Zane Jackson | 19th December 2009

TRANSPORT Minister and Ipswich MP Rachel Nolan has confirmed that she first learned Queensland Rail might be privatised through the press.

Ipswich MP Rachel Nolan

TRANSPORT Minister and Ipswich MP Rachel Nolan has confirmed that she first learned Queensland Rail might be privatised through the press – not from Premier Anna Bligh.

Ms Nolan yesterday insisted she had not been sidelined by the Premier – but the LNP branded her a "puppet minister".

Ms Nolan strongly denied that QR was for sale in Parliament on May 21 – claiming that the Opposition would be the party most likely to launch such a privatisation.

Just three days later, on May 24, The Sunday Mail reported that a range of public assets, including QR, were in line to be sold off following an interview with Premier Bligh.

But Ms Nolan said the first she was told of plans to sell QR's coal and freight division assets was on May 25 at a meeting of the Cabinet Budget Review Committee – a day after the story was revealed to the media.

The asset sales were confirmed as part of the Queensland Budget on June 2.

Ms Nolan said the initial media report had been "speculative" and said only that QR assets might be sold.

She said she had been fully involved in the Cabinet-level discussion which later took place.

"Cabinet is the critical decision making body of government," she said.

"I knew about this proposition when the decision was made ... this decision has my full support.

"As Transport Minister and Member for Ipswich I was involved in this decision-making process and am fully committed to implementing the public listing of the commercial parts of QR."

She said the asset sales would benefit Ipswich, stating that employment at the Redbank workshops would grow and that 400 QR workers would transfer to Ipswich from the rail service's passenger headquarters in Brisbane.

However, unions have launched a determined campaign against the sell-off of QR's coal and freight division, claiming it would put 500 jobs at risk at Redbank.

Shadow Transport Minister Fiona Simpson said news of the QR privatisation plan had "leaked like a sieve" in the weeks prior to it being officially announced.

"It was one of the worst kept secrets that they were going to sell QR assets, so that's why I questioned the minister in parliament," she told The Queensland Times.

"If we accept she was ignorant of the privatisation plans, it only shows she is a puppet minister or is being let down by the behaviour of the Premier."

Ms Simpson said the LNP was opposed to the asset sales.

"The government shouldn't be flogging these assets to pay the bills. The assets they are putting up for sale earn good money for the state," she said.

[ozbob]

From the Courier Mail click here!

Rail privatisation plans under suspicion

Rail privatisation plans under suspicion
Article from: AAP

Petrina Berry

December 23, 2009 03:10pm

A LEAKED memo does not prove the Queensland government had plans to privatise the state's coal rail business before the last election, Transport Minister Rachel Nolan says.

The government has received widespread backlash over its plans to sell off some assets, including a public float of Queensland Rail's (QR) coal rail business, because they were not revealed before the March election.

A memo allaying fears associated with privatisation of parts of QR sent to staff by QR chief executive Lance Hockridge in October has been leaked to the state opposition and the unions.

In the memo, Mr Hockridge says, "we started our strategic transformation work 16 months ago and already have the game plan in place to deliver on our vision of becoming a truly great Australian company a world leader in rail and transport."

Opposition transport spokeswoman Fiona Simpson said that was proof the sale of QR was already on the cards before the March election but was kept from the public.

"This memo is a smoking gun that shows the government was already planning to sell the assets before the election. They just didn't tell the truth about it," Ms Simpson said.

Ms Nolan said Mr Hockridge's email was about commercialisation not privatisation.

"The document I understand is something Lance Hockridge put out when he became CEO and it was no secret at the time that Lance's role was to make this organisation more commercial," she said.

"It is misleading to suggest a transition towards commercialisation is the same as a transition towards privatisation.

"There has been a long process of commercial reform in Queensland Rail that has been going on for 20 years but the privatisation was put on the agenda more recently."

Ms Simpson said Ms Nolan was not to be trusted.

"This minister also got up in parliament and said QR was not for sale and four days later it was out there publicly that they are selling it."

[ozbob]

From the Courier Mail click here!

Premier Anna Bligh puts gag on asset sell-off

Premier Anna Bligh puts gag on asset sell-off
Article from: The Courier-Mail

By Craig Johnstone

January 02, 2010 12:00am

BLIGH Government ministers have been gagged from talking about the $15 billion assets sales program as senior Cabinet members seek to control leaks and gaffes relating to the sales process.

With the sale of key entities, such as Queensland Rail, looming as Premier Anna Bligh's make-or-break test as a political leader this year, new probity protocols for ministers and their staff warn against discussing any aspect of the project.

All requests for information are to be referred to Treasurer Andrew Fraser's office, while public inquiries have to be handled by a special unit within Treasury.

The edict follows some embarrassing performances by ministers responsible for the assets on the auction block, including Transport Minister Rachel Nolan and Main Roads Minister Craig Wallace.

Just days before the government revealed its privatisation plans, Ms Nolan declared to State Parliament that "Queensland Rail is not for sale", and has generally struggled to get on top of a demanding portfolio.

The gag order is revealed in documents sent to all Government ministers and posted on the Department of the Premier and Cabinet's Right to Information disclosure log.

The documents tell all ministers that the protocols, draw up by probity specialists O'Connor Marsden and Associates, are aimed at ensuring confidence in the integrity of the sale process.

It says ministers and staff should not discuss the sell-off with "key stakeholders, such as media representatives, potential participants, key suppliers, community interest groups, industry associations".

A "key probity risk" in the sell-off is any perception that the release of unauthorised information or ministerial contact with potential buyers could result in an unfair advantage being created, it says.

However, the gag will also limit the potential for political embarrassment over the asset sales at a time when the Government and Ms Bligh in particular are under intense pressure over the handling of the privatisation issue.

The Port of Brisbane, parts of Queensland Rail and the Abbot Point Coal Terminal are all due to be privatised by the end of this year, well ahead of the next state election. Queensland Motorways is due to be sold by the middle of next year.

The government has also legislated to exempt from its new Right to Information laws documents related to the commercial activities of any business set to be sold off, saying they are "commercially sensitive".

[mufreight]

One must question in the light of Premier Bligh's gag dictate if in Queensland we live in a democracy where the people elect representatives to represent their wishes or under a dictatorship where our representatives are not allowed to represent or discuss matters of concern to their constituents.
On the basis of such dictatorial action by the Premier and responses to Emails sent to the Premier, the Transport Minister and my local member I now question the real intent of these asset sales.

[ozbob]

From the Brisbanetimes click here!

MP quits union over 'untenable' position on asset sales

MP quits union over 'untenable' position on asset sales
January 18, 2010 - 12:03PM

A Queensland union has said "good riddance" to an MP who has resigned his membership over the government's sale of assets.

The Electrical Trades Union says Barron River MP Steve Wettenhall has quit the union, which he joined in July 2006.

In a letter dated December 16, 2009, Mr Wettenhall wrote that his membership of the union was "untenable" given its campaign against the government's $15 billion asset sales program.

The ETU has run a vocal campaign against the sales, which it says will cost jobs, even funding a billboard targeting Premier Anna Bligh on a main road near her south Brisbane home.

In a statement, ETU assistant secretary Allen Hicks said Mr Wettenhall had received considerable support from ETU members during the 2006 and 2009 election campaigns.

Mr Hicks said members would bid "good riddance" to Mr Wettenhall.

"We elect and pay our politicians to think, not just to toe the line like this," he said.

"If that is all there is to this political job then a trained monkey could do it.

"Now that Mr Wettenhall has turned his back on ETU members, he should not be surprised if they turn their back on him in the future."

Comment is being sought from Mr Wettenhall.

The first government asset to be sold off is Forestry Plantations Queensland.

Acting Premier Andrew Fraser on Monday told reporters there was a strong field interested in the business, with indicative bids due next month.

"From what I'm told by the commercial advisers, the field is robust and the people we would be expecting to bid are in the field," Mr Fraser said.

Part of Queensland Rail will be publicly floated in the second half of 2010, with the Port of Brisbane, Abbot Point coal terminal and Queensland Motorways to be put on the market progressively through the year.

The sales were not announced to voters before the March 2009 election, but in the June budget, and prompted a strong backlash.

AAP

[#Metro]

Looks like it the process is reaching the final stages...

http://www.news.com.au/business/queensland-rail-in-7bn-mega-float/story-e6frfm1i-1225808465519

Queensland Rail in 7bn mega float
THE Queensland Government will offload some of its rail assets in potentially the biggest float in Australian history.
The estimated $7 billion float will go ahead in the second half of 2010 with priority given to Queensland residents.

[#Metro]

http://www.news.com.au/couriermail/story/0,23739,26622983-3122,00.html

Bankers to grab $7b QR float
"There have been quite a few bankers and brokers from all over the country and offshore visiting," an insider said.

The Government is keen to get the float away by the end of the year so timing for such a large ASX debut is tight.

To make the timetable, the Government will likely appoint one or more lead managers within the next few weeks. The role is likely to be called for and filled by the end of February or mid-March.

Subsidiary roles such as public relations for the float are expected to be announced later.

[ozbob]

From the Courier Mail click here!

Unions aim for victory on assets sell-off

Unions aim for victory on assets sell-off
Article from: The Courier-Mail

John McCarthy

January 29, 2010 12:00am

QUEENSLAND'S unions believe they are on the cusp of rolling the Bligh Government's $15 billion privatisation program with a major escalation of their campaign and possible industrial action likely within weeks.

Union sources said a special conference to overturn the asset sell-off was now more than likely to occur within the next six months.

But Premier Anna Bligh thumbed her nose at the unions, saying she did not have to follow the outcome of a new vote.

"The Labor Party has the right to make whatever decision it wants to make but the Government makes decisions and implements them," Ms Bligh said.

"Obviously I'd take into account the views of the party but I'm not bound by them."

About 45 per cent of Labor-affiliated unions have so far backed a move for a new vote to overturn one taken at last year's Labor conference that supported the newly-elected Bligh Government's asset sell-off scheme.

Under party rules, only 50 per cent of affiliated unions need to back the move for a new vote and unions said pressure was building. But ALP sources said the numbers were locked up with unions such as the Queensland Nurses Union standing in the way of a new vote.

However, the Left is still confident and Premier Bligh said a special conference was within party rules.

"If people want to have that they're entitled to," she said.

The Electrical Trades Union, which has led the anti-privatisation fight, yesterday took moves to expel Police Minister Neil Roberts and Labor MP Jason O'Brien from the union over their support for the privatisation scheme.

Two charges from rank and file members were made against the MPs and that will now go before a state executive meeting next month.

Mr Roberts yesterday said he wanted to remain a member of the union. Mr O'Brien had not yet responded.

Electrical Trades Union boss Peter Simpson said the unions were "still trying to crank this thing up" and getting majority union support was "likely".

Opposition Leader John-Paul Langbroek said unions should maintain the rage and he expected the public sector unions representing teachers, nurses and public sector workers to join in the fight.

"My concern is that the unions are putting the job of Anna Bligh ahead of the jobs of their members," he said.

Treasurer Andrew Fraser said the unions should be coming up with an alternative plan for Queensland if they were going to oppose the Government's policy.

[ozbob]

From the Brisbanetimes click here!

Unions to battle on against asset sales

Unions to battle on against asset sales
JESSICA MARSZALEK
January 29, 2010 - 7:04AM

The Queensland Council of Unions will not call for a special ALP state conference following a meeting on the government's planned asset sales, leaving that decision to Labor-affiliated unions.

The QCU met on Thursday to shape a strategy to oppose the planned privatisation, including television and radio advertising campaigns.

But there was no discussion of a special conference to force the government to explain itself, QCU general secretary Ron Monaghan said.

"The Queensland Council of Unions is not affiliated with the Labor Party and, therefore, it is not our role to call for a special conference on this issue," he said.

"It is, or is not, the role of affiliated unions to the Labor Party, but not the Queensland Council of Unions' role."

Mr Monaghan said the QCU would instead "battle on for as long as it takes" to educate the public on why the sales were not necessary.

He said Premier Anna Bligh's comments that the sale would enable the government to "build a better Queensland, with better schools, better hospitals and better roads" were misleading.

He said the government had told unions that proceeds would be used to pay back debt, not to build infrastructure.

"You can't do both, you either do one or the other," he said.

On the other hand, keeping profitable assets would generate money to build infrastructure, he said.

State Treasurer Andrew Fraser said the unions needed an alternative plan for Queensland if they were going to oppose the policy.

"Those who have expressed opposition, including the unions, haven't put forward an alternative plan," he said.

"... Those who oppose it need also to propose, and no one has proposed an alternative."

But Mr Monaghan said its alternative was that the sales were simply not needed, as they were based on an outdated prediction of a $15 billion budget blowout over the next five years.

"Our arguments are that you've made a decision based on wrong information," he said.

"We've got an alternative, they don't need to do this."

Opposition Leader John-Paul Langbroek called on the unions to "maintain the rage" and to put their members' jobs ahead of Ms Bligh's.

"Our concern is that this is something they will drop off, it's something they're doing with a couple of years till the next election," he said.

Unions representing teachers, nurses and public sector workers should follow the hard-line example of the Electrical Trade Union, he said.

The ETU has sent letters threatening to expel Police Minister Neil Roberts and, reportedly, Member for Cook Jason O'Brien - its two remaining Labor MP - following the recent resignations of two fellow MPs.

A spokesman for Mr Roberts said he did not want to resign, having been a "proud member" for 30 years.

He has been given until February 15 to respond.

Comment was sought from Mr O'Brien.

AAP

[#Metro]

Soon I think there will be an announcement...
http://www.news.com.au/couriermail/story/0,23739,26651672-3122,00.html

ABOUT a dozen of the country's leading finance houses are believed to be working submissions to pitch for the lucrative role as lead manager of the $7 billion Queensland Rail privatisation.

Tenders were called this week by Treasurer Andrew Fraser, with bids closing on February 8 and a decision on the lead manager expected by the end of February.

[ozbob]

Commissions on these 'sales' will be hundreds of millions of dollars I would suggest , money better spent on transport services throughout the state IMHO.

[ozbob]

From the Courier Mail click here!

Early warning on asset sales

Early warning on asset sales
Article from: The Courier-Mail

Steven Wardill

February 01, 2010 11:00pm

THE Bligh Government was last night under pressure to release a document believed to have warned in October 2008 of the need to sell state assets to manage mounting debt.

A Right to Information investigation by Channel 7 last night claimed the Cabinet Budget Review Committee discussion paper sounded the early warning on asset sales.

The Government has consistently maintained that it did not consider asset sales until after the state election.

The RTI documents say the discussion paper was "undated", however it was claimed last night that it had been presented to senior ministers on the committee in October 2008, five months before the election and six months before the public was told of the asset sales plan.

The discussion paper was not released under RTI rules which prohibit access to information related to a Cabinet decision.

The Opposition challenged Ms Bligh to release the document, saying it went to the core of the Premier's honesty and credibility.

"If Ms Bligh is telling the truth that Labor did not consider asset sales until after the election, then Ms Bligh will have no problems with being upfront and honest with Queenslanders by releasing this document," a spokesman said.

Channel 7's RTI application also unearthed an email related to a meeting between Treasurer Andrew Fraser and international firm Hancocks about the company's interest in buying Forestry Plantations Queensland, currently being sold by the Government.

In the email, a Treasury official states Mr Fraser indicated at the meeting that the "thinking on forestry was not closed".

Mr Fraser said the email simply showed the Government's long-held position of being neither philosophically opposed or slavishly devoted to asset sales.

"They indicated that they would be interested in expanding their forestry business at some point in time, if it ever were to be for sale."

[ozbob]

From the Brisbanetimes click here!

Govt will not release promised asset sale document

Govt will not release promised asset sale document
JESSICA MARSZALEK
February 3, 2010 - 5:41PM

The Queensland government says it will not release a cabinet document and other detailed information about its planned asset sales to assist public debate on the selloffs.

Treasurer Andrew Fraser used a Committee for Economic Development of Australia function today to argue privatisation proceeds would reduce debt, freeing up cash flow from interest payments on infrastructure spending.

But attendees questioned why the government hadn't released detailed information, such as scoping studies, for economists to provide a more sophisticated analysis of the planned sales.

Mr Fraser said there were limits on what could be released for commercial reasons.

"Sure, I suppose that the people who are about to buy these companies would love nothing more than for us to release the scoping studies and save them a lot of money," Mr Fraser said in reply.

Similarly, homeowners did not advertise the reserve price of their home before selling, he said.

He said additional information about the regulatory models would eventually be released.

But the government would not release a cabinet document that Premier Anna Bligh had promised earlier to divulge.

Instead, Ms Bligh quoted a line from the document yesterday showing that the government had received advice before the election that it was not a good time to sell off assets.

She said it showed her government was merely receiving Treasury advice about weathering the world's worst economic meltdown.

Mr Fraser refused to say on Wednesday whether the document contained advice on when would be a good time for the asset sales.

"There is ... a point of principle and indeed an obligation for our system of government to be able to consider confidential advice," he told reporters.

"... It remains a confidential document."

Mr Fraser noted there had been a lack of quality public debate on the issue, blaming the state opposition for lacking alternative policies.

"Trying to mount an argument against a vacuum is like trying to put a flagpole in a bowl of custard - it's pretty difficult," he said.

Meanwhile, Queensland Council of Unions general secretary Ron Monaghan told the function the planned asset sales had caused the government to lose half of its core support.

He said polling in September found just seven per cent of the 1010 people questioned supported privatisation, with 66 per cent opposed. The remainder were neutral.

More than 40 per cent of respondents said they were closest to the ALP but only 21 per cent said they intended to vote Labor at the next election, and 56 per cent of those polled said they were less likely to vote Labor because of asset sales.

"When it comes to the damage to Labor and the connection between its supporter base, the results are frightening ... they have lost half of their core support," Mr Monaghan said.

AAP

[O_128]

under FOI they have to they have no right at all.

[longboi]

under FOI they have to they have no right at all.

Not if it's commercially sensitive information.

[ozbob]

From the Brisbanetimes click here!

Union takes QR to court

Union takes QR to court
February 11, 2010 - 12:21PM

Five rail unions are taking Queensland Rail (QR) to court claiming the state government-owned transport body failed to consult them over its part-privatisation.

The unions are seeking up to $660,000 in penalties in the Federal Court, following QR's alleged breach of 20 provisions contained in enterprise bargaining agreements.

Queensland Council of Unions general secretary Ron Monaghan said the agreements included clauses that stated there must be "genuine consultation" with workers where significant changes to the workplace are proposed.

"This whole thing smacks of a gung-ho management, hell-bent on trampling on workers' rights, doing the bidding of a government which is desperate to rush through its privatisation agenda," Mr Monaghan said in a statement.

"QR is not above the law in this matter.

"We are demanding that Queensland Rail stop this process and properly consult with QR workers and their unions and this is what our court action aims to do."

The court application will be lodged in Brisbane on Thursday.

The government announced last year QR's coal assets would be sold, along with other public-owned assets including the Port of Brisbane and Forestry Plantations Queensland.

Comment is being sought from QR.

AAP

Caution:  Public comment on the this actual specific legal action should be avoided whilst action pending.  Comment on asset sales generally is fine.

[ozbob]

From the Courier Mail click here!

No need for Bligh to sell off the farm

No need for Bligh to sell off the farm
Article from: The Courier-Mail

Ross Guest

February 24, 2010 12:00am

QUEENSLAND Treasurer Andrew Fraser said recently that the impending withdrawal of the Federal Government guarantee of state borrowings meant the sale of assets was now even more important.

There's more spin on that statement than on a Shane Warne leg break. There are other ways of dealing with the Government's Budget problems, like cutting the runaway wage bill in Queensland government administration. This doesn't have to mean cuts to frontline services in health, education, policing or even the beloved building program. It could be done through administrative efficiencies.

The wage bill for "public administration and safety" will be about $10 billion in 2009-10 (it was $9.6 billion in 2008-9), according to the Australian Bureau of Statistics. It grew by 7 per cent in 2008-9 compared with 4.7 per cent for the rest of the Queensland economy.

In the 20 years of Labor in Queensland this wage bill has grown by, on average, 1 per cent per year faster than the wage bill for the state economy. That amounts to a lot when compounded over 20 years.

The source of this growth is the number of employees in government administration, which has grown 2 per cent per year faster than employment in the whole Queensland economy on average over the past 20 years of Labor.

A 5 per cent cut, for instance, in the 2009-10 wage bill for government administration would save $500 million. This is an ongoing saving, every year, provided the cuts are not reversed.

A 5 per cent cut in one year is hard to do, but it could be phased in over several years – the same period that the asset sale process is expected to take. Yes, it would imply some job losses through natural attrition, a freeze on new positions for a while, and perhaps some forced redundancies. But why not? These are the hard decisions that private business must make in the face of a downturn in revenue and tough competition. Even some universities have had to enforce some academic redundancies recently.

And it would help bring job growth in government administration into line with job growth in the rest of the Queensland economy.

Last year, when announcing departmental mergers, Premier Anna Bligh proudly declared there would be no job losses. "Every job will be protected," she said, as if this is something taxpayers should applaud. Nor has the Premier avoided a stoush with the unions by protecting jobs in government administration. The preferred budgetary fix – asset sales – has been met with a fierce union backlash.

Let's compare a $500 million annual saving to the Budget bottom line from a 5 per cent cut in the wage bill for administration with the annual Budget saving from all the asset sales put together.

It is interesting that the Government does not, in its asset sales "Myths versus Facts" website, put a figure on the annual Budget saving from such sales. It claims that the sales would save at least $10 billion in necessary capital upgrades on the assets being put up for sale. That is not an annual Budget saving. The annual Budget saving would be about $125 million in interest – nowhere near the $500 million wage bill saving in question.

The asset sales would yield additional saving from an improved credit rating, which could save about $150 million per year in interest. Still we are nowhere near the $500 million wage bill saving – only $275 million so far.

Finally, there may be an additional annual saving from asset sales if the assets themselves are not yielding a return equal to the Government's cost of capital.

Here it gets murky. At least some assets – Queensland Motorways for one – seem to be earning a satisfactory rate of return. Others may not be, but the total annual saving from the asset sales would probably not be greater than the $500 million, especially when taking into account non-financial benefits to the community.

The bottom line is that there are other budgetary savings that could be made of comparable magnitude to the budget saving from selling assets. But they would involve job losses. There is no free lunch.

Australian Treasury Secretary Ken Henry said recently that taxes would probably have to rise as a share of the economy due to population ageing.

That's a bit defeatist. If governments could control the wage bills in their bureaucracies they could offset at least some of the costs of ageing, as well as the costs of the financial crisis – without having to sell assets.

Ross Guest is a professor of economics at the Griffith Business School.

[justanotheruser]

I know of two sections of government jobs where there has been an increase in administration it seems. However on closer inspection it is actually hiring people to do admin work that currently is done by trained professionals. So not only is it cheaper to hire these paper pushers it also allows these professionals to do the job they are trained to do. Does the above article take that into consideration when quoting the increase in administration?

[frereOP]

Why is privitisation such an issue?  The only people who are REALLY against it are those who are worried that they might have to justify their existence.  If selling QR frees up funds for a better investment then that's what should happen.  As far as I'm concerned there are no sacred cows.

The UK has had private railways for ages and they also have one of the best public transport networks in the world.  The London overground is all private, the tube is owned by the City of London, and long distance trains like Eurostar and Virgin rail are all privately owned and provide fantastic high speed rail services to Paris, Antwerp and Glasgow.

So don't tell me that selling QR is bad.

[O_128]

People are just worried they might have to do some work. Look at what most private companies get done in the same amount of tim as a government department with less workers and smaller budgets.

[frereOP]

I know of two sections of government jobs where there has been an increase in administration it seems. However on closer inspection it is actually hiring people to do admin work that currently is done by trained professionals.

I work for a Qld goverment department and since becoming a government department, we have become bogged down in petty bureaucracy.  No they don't hire new people to do the admin work, they devolve it (like filling out Purchase Orders using software that is unintelligible) to professionals who should be spending their time doing productive work.

[Arnz]

Why is privitisation such an issue?  The only people who are REALLY against it are those who are worried that they might have to justify their existence.  If selling QR frees up funds for a better investment then that's what should happen.  As far as I'm concerned there are no sacred cows.

The UK has had private railways for ages and they also have one of the best public transport networks in the world.  The London overground is all private, the tube is owned by the City of London, and long distance trains like Eurostar and Virgin rail are all privately owned and provide fantastic high speed rail services to Paris, Antwerp and Glasgow.

So don't tell me that selling QR is bad.

They're not selling QR.

They're selling QR National (the Coal division), which is the profitable part of the business.

[#Metro]

Long post warning  

I think it should be sold. I know this puts me in the minority, but nevertheless.
On its own a smaller stream of payments versus one big upfront payment is neither better or worse than one or the other. Its like buying/selling a house or choosing to rent or let a house to or from someone. Neither is "good" or "bad" in itself. Even asking such a question sounds awkward. It comes down to circumstances.

A small stream of ongoing payments isn't going to pay off the large and looming expenditures required to maintain the quality of life in SEQ, especially in the face of ballooning growth. Look at the ICRCS. That is $13 billion to do. The money is needed sooner, not later. There are lots of other deserving projects that require funding in this state (busways) and sooner rather than later. And doesn't the state receive mining royalties from the coal companies anyway?

The fact that QR is making a profit is neither a reason to sell or not to sell the operation.
Indeed, if it were making a loss, there would be calls to give it a subsidy. And if QR could is self-funding then why on Earth does it need to be attached to Anna Bligh at the hip? And especially if she is ripping money away from the operation, and not giving anything back.

Stories about QR being a success/failure don't carry much weight in my eyes. There are cases where private railways have failed, and cases where they have been successful. I'm sure there are cases where public railways have been successful or failed also. This suggests to me that success/failure has more to do with the competence of the management, how competently the sale was effected, what conditions were attached and the economic environment at the time than whether it was privatised or kept public.

There is one reservation I have. Its whether a private QR will play fair in giving track access etc to its competitors. This could be a problem. But there is a lot of debate on integrated vs separate (Swiss Railways are integrated, Swedish ones are under a TL-like type of authority), so there are solutions for this too.

Just my humble opinion.

[#Metro]

How the Swedish do it: http://www.banverket.se/en/Amnen/About-Banverket/Duties-and-organisation/Easy-reading-about-Banverket.aspx

It is possible to sell QR but keep the track. But there is a lot of debate about whether a spit or integrated is better/worse.

[Arnz]

Once again, its only QR National (Coal) which is being put up for Sale.  The other parts of QR are not up for sale.

If I recall correctly QRNetwork (The division that controls the Tracks) and QRPassenger (Citytrain, Traveltrain) are being merged into one identity as "Queensland Rail" later this year.  The merged identity will ensure that QRPassenger doesnt have to rely on QRNetwork when it comes to track failures (why they were divided in the first place, I have no idea).

The merged identity would be retained under government control

[ozbob]

From the Courier Mail click here!

QR National to list on stock exchange despite mounting opposition

QR National to list on stock exchange despite mounting opposition

   * by Louise Brannelly
   * From: The Courier-Mail
   * March 08, 2010 12:00AM

QR National is on track for a $3 billion December quarter stockmarket listing, despite mounting opposition to the plan from rivals, mining companies and unions.

QR CEO Lance Hockridge yesterday refused to confirm market speculation the company would list on November 1.

He said it would be in the "last quarter of this year".

His comments, made on the ABC's Inside Business program yesterday, come as critics of the Bligh Government's asset sales ramp up their campaigns.

Representatives of up to 20 mining companies, who are QR customers, will meet in Brisbane today. They want to derail the push to sell the above and below rail assets (trains and tracks) in one package. Last month Mark Rowsthorn, the CEO of rival Asciano, labelled the privatisation plan an "intolerable situation", and likened the situation to that of Telstra's vertically integrated monopoly.

But Mr Hockridge said the Government was not the only party in favour of offloading QR National as a vertically integrated business. "The only people who are voicing . . . opposition . . . are people who have a vested interest in keeping things as they are," he said.

He also said he had not heard an alternative to the Government's plan

"All I hear is a criticism of what's being suggested. The difference here is between ownership and access. To the extent that this is about competition, we favour competition."

Mr Hockridge also said there was no comparison between QR National's situation and that of Telstra's, which the Federal Government is currently trying to separate.

"The comparison between Telstra and ourselves is chalk and cheese," he said.

"You are talking about a big, big company with literally millions of small customers versus a company like ours with a handful or two handfuls of big customers, of customers of the kind of BHP and Rio Tinto."

At their meeting today, the miners will kick around the idea of forming a consortium to buy the "below rail" assets, or the coal track network.

But insiders say such a move would prove impractical, given the number of companies involved and their different interests.

At this stage, potential QR National investors will have to wait until a prospectus is issued to find out more revealing information about the company's performance.

Mr Hockridge said the combined business moved 250 million tonnes of exports last year and made a profit of a more than $280 million.

The business made a 7.7 per cent return on investment but Mr Hockridge would not break down the returns of the different below and above-rail units.

"We are in the infrastructure business and that's the sort of return (single digit), with the commensurate amount of risk, that we believe that we ought to be looking for as a publicly listed company," he said.

On a personal note, Mr Hockridge – who took home a total package of $981,000 for 2008-09 – said he did not know whether he would score a pay rise when the company became public and he took on the role of QR National's inaugural CEO.

From the Courier Mail click here!

Coal miners set to bid for Queensland Rail track

Coal miners set to bid for Queensland Rail track

    * by James McCullough
    * From: The Courier-Mail
    * March 05, 2010 6:49PM

THE state's major coal companies are considering forming a consortium to offer to buy Queensland Rail's below rail assets as tensions between the Bligh Government and resources groups intensify over the proposed disposal of the carrier.

About 20 major coal companies meet in Brisbane on Monday and high on the agenda is formation of the proposed consortium to buy the track network.

The latest move comes after growing dissatisfaction within the state's powerful resources lobby about the Bligh Government's decision to sell Queensland Rail via a public listing on the Australian Stock Exchange.

Queensland Resources Council head Michael Roche said last year before the decision about the IPO had been announced, that the QRC, on behalf of its coal company members, made it "perfectly clear that we regarded the IPO of a vertically integrated QR as being the worst possible outcome".

"Industry was very fearful of an entity that both controlled the track network for coal as well as running one of the competing rail services over that track network," Mr Roche said last night.

He said what the QRC proposed as an alternative was that coal companies be given the opportunity to bid for the track network in much the same way as the coal companies now ran Wiggins Island and this would be considered on Monday.

"Industry ownership of the track network would ensure it was in the hands of an owner interested in the performance of the network not simply interested in profiting from the network," the QRC chief said.

Mr Roche questioned why Treasurer Andrew Fraser would not test whether the coal companies could come up with a better return to taxpayers from the sale of Queensland Rail.

"The coal industry feels so strongly about the issue that they are not prepared to take 'no' for an answer," Mr Roche said.

The latest twist in the battle between the Government and mining companies over QR comes as Mr Fraser and QR CEO Lance Hockridge yesterday both defended the mode of sale for the group chosen by the State Government.

Mr Fraser said the float of QR remained his "number one priority for 2010".

Mr Hockridge said the best rail companies in the world were run in a way the government was looking at structuring QR National.

The QR chief said that he felt the float would encourage competition rather than stifle it.

"I am firmly of the view that this (the float) is in everyone's best interest," Mr Hockridge said.

[ozbob]

From the Courier Mail click here!

Anna Bligh faces electoral backlash over asset sales

Anna Bligh faces electoral backlash over asset sales

    * by Steven Wardill
    * From: The Courier-Mail
    * March 07, 2010 7:23PM

ONE of the architects of the Bligh Government's plan to sell state assets, Treasurer Andrew Fraser, would retain his Brisbane seat despite a major voter backlash over the decision.

However, new research has revealed up to 25 of Mr Fraser's Labor colleagues would be joining jobless queues after the next election if asset sales proceed.

The research, commissioned by anti-privatisation unions, polled five seats across Queensland about voting intentions and reaction to asset sales.

Conducted by UMR Research, the results revealed widespread anger over asset sales remained while there was significant exasperation with the way the state is managed.

But the polling found Mr Fraser would retain his seat of Mt Coot-tha, bucking the downward trend being experienced elsewhere.

According to UMR, Labor's primary vote in Mt Coot-tha has fallen 2 per cent but Mr Fraser would still win with the same margin he achieved at the last election.

Electrical Trade Union secretary Peter Simpson said Labor faced a "bloodbath" if the Government failed to back down. "Obviously we hope that someone is heeding the warning but that doesn't appear to be happening at this stage," he said.

Mr Fraser said Queenslanders were applying the "common sense test" to asset sales, realising the alternatives were worse.

Across the five seats polled, Labor's vote on a two-party preferred basis sunk by seven per cent, enough to cost the party up to 25 seats and hand the Liberal Nationals victory.

However, the result was a 2 per cent improvement on union polling in July last year.

Rockhampton suffered the biggest decline of 13 per cent but veteran minister Robert Schwarten would retain the safe seat for Labor, if he recontested.

However, Labor's star recruit of the 2009 election, Greenslopes MP Cameron Dick, would be lucky to win while Townsville's Mandy Johnstone and Pine River's Carolyn Male would lose. The polling found more than one in three were yet to commit to either side and 58 per cent were less likely to vote Labor if asset sales proceed.

Most voters believe Labor planned the sales before the election and the Port of Brisbane and Queensland Rail are the most unpopular sales.

[frereOP]

Most voters believe Labor planned the sales before the election and the Port of Brisbane and Queensland Rail are the most unpopular sales.

They might be unpopular, that doesn't mean they are wrong like a lot of other government decisions (including asset sales) which were unpopular at the time but proved successful in the long run and have now been forgotten about as an issue.  QANTAS, GST, fluoride...

[#Metro]

Yeah, I always don't like these poll things frereOP. I mean why elect a government at all if you can just have every decision done by a newspaper or research firm poll measuring its popularity. Its a bit like asking "do you want to be taxed"...

If I recall correctly QRNetwork (The division that controls the Tracks) and QRPassenger (Citytrain, Traveltrain) are being merged into one identity as "Queensland Rail" later this year.

Hopefully this arrangement will put an end to the blame game of who or what is responsible for faults etc.

Across the five seats polled, Labor's vote on a two-party preferred basis sunk by seven per cent, enough to cost the party up to 25 seats and hand the Liberal Nationals victory.

True, but they have been in power for almost 20 years now (minus a short break). How long do you want to be in power for? Forever? I'm not sure if there is anything on Earth that that will turn their fortunes around, even if the assets sales were canned.

[ozbob]

From the Brisbanetimes click here!

Mine companies seek rail sale alternative

Mine companies seek rail sale alternative
PAUL OSBORNE
March 8, 2010 - 3:17PM

Mining companies have agreed to put to the Queensland government an alternative plan for selling the state's coal rail assets.

The Bligh government is aiming to float Queensland Rail's coal freight interests by the final quarter of 2010.

The government plan involves selling what has been dubbed QR National as a whole, including trains and tracks.

But coal companies, in talks chaired by former NSW premier Nick Greiner in Brisbane on Monday, unanimously agreed to put
an alternative proposal to the government although they have yet to publicly spell it out.

Queensland Resources Council chief executive Michael Roche said the companies believe the government's plan is neither in the interests of the coal industry nor Queensland taxpayers.

''Queensland coal producers are concerned about the performance of this crucial coal industry infrastructure under the structure proposed by the Queensland government whereby a privatised QR National will both control the coal track network as well as operate a rail haulage business in competition with other haulage operators using that track,'' Mr
Roche said in a statement.

Mr Roche said the government's proposal would severely limit investment in new rail capacity needed to create jobs and provide for industry growth.

''By contrast, coal producers as owners of the coal track network have a very strong incentive to ensure a high performing network and to make timely investment in new rail capacity to avoid export bottlenecks,'' Mr Roche said.

Mr Roche said the coal industry was not asking for the public float to be abandoned.

''Rather, industry is simply asking for the opportunity to provide an alternative bid and have that industry alternative judged side by side against the public float option,'' he said.

The mining industry has been arguing the assets should be split into two assets - trains and tracks - in order to avoid the pitfalls of a massive private monopoly owning both.

Companies attending the Brisbane meeting included Anglo Coal Australia, BHP Billiton Mitsubishi Alliance (BMA), Ensham Resources, Felix Resources, Jellinbah Resources, Macarthur Coal, New Hope Coal Australia, Peabody Energy, QCoal, Rio Tinto Coal Australia, Vale, Wesfarmers Resources and Xstrata Coal.

Mr Greiner previously worked with coal companies to resolve a dispute in NSW's Hunter Valley in 2008.

Comment is being sought from the government.

[Jon Bryant]

There is one reservation I have. Its whether a private QR will play fair in giving track access etc to its competitors. This could be a problem. But there is a lot of debate on integrated vs separate (Swiss Railways are integrated, Swedish ones are under a TL-like type of authority), so there are solutions for this too.

By ACCC and law they have to provide open access.  This does not mean is has to be the best time access so in that sense but the more goods moved over a network the more revenue/better asset utilisation is achieved.

[#Metro]

This is contentious. I like to think of railways as being like a public road.
Or alternatively a private toll road where the operator is not your competitor.

Just uncertain about this particular point.

[somebody]

By ACCC and law they have to provide open access.  This does not mean is has to be the best time access so in that sense but the more goods moved over a network the more revenue/better asset utilisation is achieved.

Clearly the miners don't want to rely on this though.  I agree that the monopoly assets should remain in Govt control.

[frereOP]

Yeah, I always don't like these poll things frereOP. I mean why elect a government at all if you can just have every decision done by a newspaper or research firm poll measuring its popularity. Its a bit like asking "do you want to be taxed"...

True, but they have been in power for almost 20 years now (minus a short break). How long do you want to be in power for? Forever? I'm not sure if there is anything on Earth that that will turn their fortunes around, even if the assets sales were canned.

A week is a long time in politics and election campaigns are at least 3 weeks long.  Didn't Anna Bligh win the unwinnable election last time?  Governments lose elections, oppositions don't win them.  Irrespective of how bad the government is, the alternative also has to be better than the encumbent. 

[ozbob]

From the Brisbanetimes click here!

Privates companies to bid for state's coal rail

Privates companies to bid for state's coal rail
TONY MOORE
March 9, 2010 - 5:40AM

Queensland's coal companies want to buy the state's coal rail network and have called on former New South Wales premier Nick Greiner to prepare their offer.

The Queensland Resources Council yesterday said Mr Greiner had unanimous support from 13 coal companies, including some of the biggest coal companies operating in the state, to develop the plan.

That support was decided at a meeting yesterday, which included representatives from Anglo Coal Australia, BHP Billiton Mitsubishi Alliance, Ensham Resources, Felix Resources, Jellinbah Resources, Macarthur Coal, New Hope Coal Australia, Peabody Energy, QCoal, Rio Tinto Coal Australia, Vale, Wesfarmers Resources and Xstrata Coal.

QRC president Michael Roche told Fairfax Radio 4BC coal companies wanted to put forward an alternative to the Queensland Government's plans to raise money through a public float.

He said the companies, which contributed $3 billion in coal royalties to Queensland's 2008-09 budget, should have the chance to put their case.

"We've said, 'give us the opportunity to make an offer for the track business and you might be pleasantly surprised to find what the coal industry would be prepared to pay for the track'," Mr Roche said.

"Why don't you let us put in an offer and then you can compare our offer with what you get from a float."

In December last year, Premier Anna Bligh estimated the value of Queensland Rail's coal and freight assets at $7 billion, with a first offer planned for the market in the second half of 2010.

Unions plan to march on State Parliament today to continue their opposition to the Bligh Government's planned sale of government assets.

Mr Roche said the QRC was not opposed to the Queensland government's privatisation plans as it was originally proposed in June 2009, which separated 'below track' (the rail lines themselves) and 'above track' (the trains and contracts) aspects of the business.

"We were never pushing for the privatisation, but once it was announced last June, what we were happy with was what the Premier said at that time which was the trains would be sold separately to the track," he told 4BC.

But Mr Roche said the QRC changed its position after Treasurer Andrew Fraser announced that Queensland Rail's coal and freight arm would be sold together, including track, trains and contracts.

On June 2, 2009, Ms Bligh said trains on systems such as the Goonyella, Newlands, Blackwater and Moura systems would be sold separately to sale of infrastructure such as train lines and ports.

"This will enhance competition in this important sector, which will get the best result for coal companies and the Queensland taxpayer," Ms Bligh said at the time.

Queensland's rail unions said they wanted further details on the Queensland Resources Council plan.

Rail, Tram and Bus Union secretary Owen Doogan said while both the rail union and the QRC opposed the sale of the rail track itself, they needed further information before unions backed the QRC bid.

"We are in agreement with them, in that we both believe it is inappropriate for them to sell the 'below rail' [the tracks], which is what this issue is about," Mr Doogan said.

"That is common ground, but beyond that I can't comment on what they are doing because I don't know."

[justanotheruser]

I know of two sections of government jobs where there has been an increase in administration it seems. However on closer inspection it is actually hiring people to do admin work that currently is done by trained professionals.

I work for a Qld goverment department and since becoming a government department, we have become bogged down in petty bureaucracy.  No they don't hire new people to do the admin work, they devolve it (like filling out Purchase Orders using software that is unintelligible) to professionals who should be spending their time doing productive work.

you must work for a different govt department. The two I know of it is definitely removing professionals from admin work. I am in a position to see that first hand and also talk to people involved.

[justanotheruser]

There is one reservation I have. Its whether a private QR will play fair in giving track access etc to its competitors. This could be a problem. But there is a lot of debate on integrated vs separate (Swiss Railways are integrated, Swedish ones are under a TL-like type of authority), so there are solutions for this too.

By ACCC and law they have to provide open access.  This does not mean is has to be the best time access so in that sense but the more goods moved over a network the more revenue/better asset utilisation is achieved.

yeah but those same laws didn't stop problems in other similar cases. one monopoly (due to poor government privatisation procedure) frequently held competitors to ransom and nothingwas done.

[ozbob]

From the Brisbanetimes click here!

Unions don't buy mining rail plan

Unions don't buy mining rail plan
DANIEL HURST
March 16, 2010 - 5:12AM

Union leaders have baulked at the chance to forge an "unholy alliance" with the coal industry in the Queensland Rail sell-off debate.

The state government plans to sell QR's coal haulage business through a public float later this year, but the Queensland Resources Council argues the track network should be excluded and sold directly to a consortium of 14 mining companies.

Council chief executive Michael Roche yesterday met with union representatives spearheading the fight against the asset sale in an attempt to explain why the industry's plans were superior.

But union leaders emerged from the meeting as determined as ever to oppose any sell-off.

Queensland Council of Unions general secretary Ron Monaghan said the coal miners were simply another voice in the chorus of criticism over the government's approach to privatisation.

"We're not swayed," he told brisbanetimes.com.au.

Queensland treasurer Andrew Fraser had warned the unions against supporting the mining industry's alternative plan, saying any such partnership would be "an unholy alliance of the highest order".

But Mr Monaghan dismissed the quip as "schoolboy taunt" and said the state's finances were now in a better shape than they were when the government announced the asset sales.

The government maintains the sale of QR's coal haulage business, along with other assets such as the Port of Brisbane and Queensland Motorways, will bring in $15 billion and put the onus for further spending into private hands.

A group of large mining companies, including BHP Billiton, Anglo, Rio Tinto and Xstrata, last week agreed to work together in a push to directly buy the coal haulage tracks.

Mr Roche said the industry's intention was "not to derail the government's float", but the companies believed the tracks should be sold separately from QR's coal haulage business.

"[Under the government's model] you have the owner of the coal track also being one of the operators trying to access that track," Mr Roche said.

The proposed new QR National company might use its privileged position as owner of the track to give an unfair advantage to one of the operators, he said.

Mr Roche said under the industry's plan, however, the tracks would be sold at a premium price to a consortium coal miners, who would be more likely to invest in network upgrades.

The tracks were worth more than $4 billion, he said.

"If, as we believe, the coal industry can make a very attractive offer for the coal track business, then it does open up some other options for government about the timing and in fact the decision about selling the rest of QR," he said.

Premier Anna Bligh said yesterday she still believed the proposed QR float model was the best approach.

"Well, the reality is that what the coal companies are suggesting would effectively break Queensland Rail up into much smaller parts," she said.

"That would allow the coal industry to dominate it and I don't think that's in the best interest of the economy or of taxpayers."

Opposition treasury spokesman Tim Nicholls said yesterday Mr Fraser should "remain calm and thoughtful in his discussions with the coal industry and unions" instead of throwing tantrums.

QR's passenger network and services will remain in public ownership under the privatisation plans.

[ozbob]

From the Brisbanetimes click here!

Labor's party no cause to celebrate for asset sales opponents

Labor's party no cause to celebrate for asset sales opponents
KATE DENNEHY
March 21, 2010 - 11:45AM

A year ago today the Premier Anna Bligh defied public and internal polling to secure Labor a fifth term in government.

She made history by becoming Australia's first elected female Premier, withstanding a swing of only 4 per cent to the LNP, led by Lawrence Springborg.

Ms Bligh and Treasurer, Andrew Fraser announced after the election that the government planned to privatise public assets, upsetting the union movement and many voters.

Since then the Premier's popularity has plummeted and federal Labor is concerned the issue will cost it votes at this year's election.

The battle continues with unionists and academics last week claiming a competition watchdog report criticising Sydney Airport's monopoly could have implications for the planned sell-off.

The Australian Competition and Consumer Commission's report on airport performance released this month criticised Sydney's privately-owned airport for abusing its monopoly power.

The report, released by ACCC chairman Graeme Samuel, accused the airport of price gouging - taking advantage of a lack of competition and charging especially high prices - with car parking rates.

There were "indications" that the airport had increased profits at the expense of service and that it might be earning "monopoly rents" from aeronautical services.

Ross Guest, Economics Professor at Griffith University's Business School said price gouging could happen under any private ownership unless conditions were imposed before the sale to prevent it.

The Maritime Union of Australia (MUA) assistant national secretary Warren Smith said privatisation of the Port of Brisbane would lead to increased prices for consumers.

"What is inevitable is a flow on in the impact of prices on port users which eventually makes it's way through to consumers just as the commission has pointed out at Sydney Airport," he said.

"A major reason the NSW Government decided against privatising Sydney Ferries was because of the threat of higher prices and reduction in diversity of services for a profit-driven private owner as opposed to a government service offered to the people.

"It's quite extraordinary that a state government wants to divest itself of successful government enterprises, which simply means that once they've spent the windfall gain, the capacity to benefit from the revenue stream is lost for the future."

The Queensland assets for sale are Forestry Plantations Queensland (the trees, not the land), the Port of Brisbane, Queensland Motorways Limited (tolling rights on the Gateway and Logan Motorways), Abbot Point Coal Terminal and Queensland Rail's coal transport business (tracks and trains).

Queensland Council of Unions general secretary, Ron Monaghan pointed to the government's announcement of increased toll costs on Brisbane's Gateway Bridge and Logan Motorway last week as evidence of what to expect under privatisation.

Tolls for the Gateway Motorway will increase by more than 30 per cent from July 1. The toll for a private car or small truck will rise from $2.95 to $3.85.

Mr Fraser said the increases would help pay for a $240 million upgrade, allowing for six lanes uninterrupted from Nudgee to Carrara.

Mr Monaghan said the government was increasing the tolls to "sweeten the deal" for prospective buyers.

"Just like in Sydney, if not enough people use the toll roads, the government will start funnelling traffic to them," he said.

"We've argued from the start that privatisation will increase prices and unemployment and decrease the level of service."

The Electrical Trade Union's State Secretary, Peter Simpson said privatisation would open the door to the possibility of price gouging and corruption.

"It's the job of private companies to increase profits, not to keep prices down for consumers," he said.

The Queensland Resources Council, representing the state's most powerful coal companies, is against the Queensland Rail public float, arguing that the government's model "was in the interests of neither the coal industry not Queensland taxpayers".

The QRC wanted the government to consider an alternative privatisation bid.

"As Queensland's largest export industry employing tens of thousands of Queenslanders and delivering $3b in royalties last financial year, the coal industry surely deserves the opportunity to have its alternative offer taken seriously," QRC's CEO Michael Roche said.

QRC members and unionists met last week to discuss the alternative plan but the unions remain ''implacably against'' any sell-off. The government also rejected the QRC plan.

Mr Fraser said Queenslanders would be protected from price gouging and monopoly abuse by national and state laws.

He said "base tolls announced this week" would only increase with the CPI.

"Section 46 of the Trade Practices Act provides penalties of $10 million in the case of corporations or 10 per cent of annual turnover, $500,000 for individuals, and disqualification of director roles for misuse of market power," he said.

Graeme Samuel would not comment on Queensland's privatisation plans.

Source: The Sun-Herald