Qld Budget 2009 Asset Sales - articles and discussion

[ozbob]

The Minister for Transport was on 612 ABC Radio, interview on Traveltrain but towards the end on the fine.  Basically the Government has said cannot comment due to pending appeal by QR, but one gets the impression that the Government is letting QR hang, for attempting to drive through the Governments privatisation policy.  Highlighting the fact that the Government is now having direct negotiations with the unions.  The same unions that collectively failed to oppose the privatisation moves last Labor conference.  All too cosy ...

The obvious question is will the fines result in cutbacks of services?  No one has the nous to ask that ..

QR and the Queensland taxpayer has been done over ...  should the appeal by QR be successful all will be friends again no doubt .. LOL. 
What a farce!

[#Metro]

The obvious question is will the fines result in cutbacks of services?  No one has the nous to ask that ..

No, no no! I was looking forward to railway frequency boosts!
Only Adelaide has equally dismal service!

How long must commuters wait to get more trains put on? 

[mufreight]

The politics regarding the courts decision are most interesting in terms of responsibility.
Ultimately the persons responsible are the Premier, the Treasurer and the Transport Minister who knowingly instructed the management of QR to break the law in my opinion.  
If as they will undoubtedly claim they were not informed then they are incompetent as Managers of the public assets of this state, if they were informed then they are arrogant and corrupt having possibly broken the law and have again exhibited their absolute contempt for the people of this state who employ them.
The CEO of QR Mr Hockridge by following the government directions and failing to refuse to continue with the privatization until such time as the legally required consultations had been completed is also a responsible party and together with the Premier, Treasurer and Minister perhaps could be personally liable not the QR organisation.
Perhaps it is time for the Governor to bring this farce to an end and prorouge parliament and dismiss the government and call an immediate election thus allowing the voters of this state to voice their opinion in this matter.

[Jon Bryant]

Hang on No laws were broken.  The court has only judge that QR did not consult in accordance with an Enterprise Barganing Agreement.  An obligation but in no way the law.

[Jon Bryant]

Better worded article

From ABC News click here!

QR fined $660,000 for not consulting workers

QR fined $660,000 for not consulting workers

By natalie Poyhonen

QR has three weeks to pay the five unions which lodged the action.

The Federal Court has ordered Queensland Rail (QR) to pay $660,000 in penalties for breaching industrial agreements.

It found the State Government-owned corporation did not consult its workers over the planned privatisation of rail assets.

Justice John Logan imposed the maximum penalty.

In announcing the penalties, Justice Logan said that in the face of radical changes "to exclude workers from consultation is a very serious contravention".

QR says it is disappointed by the outcome and will appeal against the decision.

A spokeswoman for the State Government says the public float of QR National will not be affected by today's court decision.

QR has three weeks to pay the five unions which lodged the action.

The corporation says it will appeal.

'Reconsider asset sales'

Electrical Trades Union (ETU) spokesman Jason Young says Premier Anna Bligh should now reconsider privatisation plans.

"What we say of this decision today is not only has QR blindly failed their employees but Anna Bligh has blindly failed the people of Queensland and the workers of QR," he said.

"Now is the time after this decision to reverse the decision that the Bligh government has made and back off on the asset sales."

Mr Young says the ETU will use part of its share of the penalties to campaign against the sale.

"We will be initially paying off the court costs with that and then ... any leftovers will go into the anti-privatisation campaign in general," he said.

Transport Minister Rachel Nolan says QR has now started negotiations with unions over the impending break-up and sale.

"It's good that that discussion is now happening because we as a Government understand that this is a big change for a lot of those QR workers," she said.

"We do want to have a genuine dialogue with their unions about it."

'Slap in the face'

Opposition transport spokeswoman Fiona Simpson says the court's finding shows how badly privatisation has been handled.

"This is a slap in the face for the Government," she said.

"This decision in the court is extraordinary in that it just demonstrates that this Government has been acting outside of the law."

Ms Simpson says the Government has shown contempt for workers.

"I think that it shows just how badly people have been treated and how angry people are that the these asset sales have been done in a way outside of the law," she said.

"It's time for this Government and Anna Bligh and her ministers to take responsibility."  

[ozbob]

From the Brisbanetimes click here!

QR to appeal costly industrial breach

QR to appeal costly industrial breach
KYM AGIUS
June 23, 2010 - 12:00AM

Queensland Rail (QR) will appeal a federal court ruling that it had breached workplace laws during its push towards privatisation.

Federal Justice John Logan fined QR Ltd and two subsidiary companies a maximum penalty of $660,000 today for breaching 20 industrial agreements with 15,000 staff by failing to consult about future employment arrangements and the subsequent restructure.

QR's bulk haulage network, QR National, will be split from the state-owned corporation on July 1 and placed on the market through an initial public offering later this year.

When handing down the fine, Justice Logan told the court that QR workers were never given the opportunity to discuss if, or how, they would be moved into the new private enterprise, how the privatisation would occur, or if they wanted privatisation in the first place.

He said the lack of consultation created an atmosphere of fear in the workplace.

"It is truly radical change, it is obvious change, change that was obviously intended to be the subject of consultation and not to appreciate that is to close one's eyes to the obvious," he told the court.

"Queensland Rail utterly failed to consult with their workers.

"To exclude workers is a very serious contravention ... of a very important modern workplace right.

"Anything less ... than the maximum penalties would not do justice."

QR says it will appeal.

A spokesperson for Premier Anna Bligh said QR did its best to consult with employees, but the unions were the ones that shut the door.

"QR has advised the government that it will appeal the court's decision," the spokesperson said in a statement.

"Government officials have made repeated and regular offers to meet with unions - offers which until last month had not been accepted."

The unions said QR should just accept the federal court ruling.

Jason Young, from the Electrical Trades Union, said taxpayers should not have to foot another legal bill.

"QR should just step up and admit they made a mistake, pay the penalties and get on with business in the right way," he said outside the federal court in Brisbane.

He said the federal court ruling and the fines would help ensure the workplace rights of Queenslanders were not breached again so flagrantly.

"Today is a victory for not only QR workers but for the wider community," he said.

"QR has blindly failed their employees.

"The workers have constantly been in contact with us in absolute worry and disarray as to what they are going to do, and it's not even isolated, its across the whole of QR."

The $660,000 fine will be divided between QR Ltd, and its subsidiaries, QR Passenger and QR Network.

They have 21 days to pay the five unions that lodged the action in the federal court, including the Electrical Trades Union, the Rail, Tram and Bus Union, the Australian Federated Union of Locomotive Employees, the Australian Manufacturing Workers Union and the Australian Services Union.

It is unclear at this stage how the appeal process will affect the payment deadline.

Meanwhile, Queensland opposition leader John-Paul Langbroek said the ruling highlighted the Bligh government's contempt for workers and its contempt for the law.

"This Labor government has been in power so long they think they are above the law," he said in a statement.

He said Transport Minister Rachel Nolan should be held accountable for corporate negligence and be sacked.

AAP

[ozbob]

http://www.fionasimpson.com.au/Pages/Article.aspx?ID=728

Massive fine for Queensland Rail confirms Labor's contempt for workers and the law

Tuesday, 22 June 2010

Premier Anna Bligh faces a test of her leadership after the Federal Court handed down a massive $660,000 fine to Queensland Rail for breaching workplace laws, the State Opposition said today.

State Opposition and LNP Leader John-Paul Langbroek said the Federal Court ruling highlighted the Bligh Labor Government's contempt for workers and their contempt for the law.

"This Labor Government has been in power so long they think they are above the law," he said.

"Whether it be securing the agreement of the CMC for the appointment of the Police Commissioner or consulting with workers about privatisation, this arrogant Bligh Labor Government just thumbs its nose at the law and does what it likes."

Shadow Transport Minister Fiona Simpson said Ms Bligh now faced a test of her leadership.

"Who is going to be held responsible for this corporate negligence? Is Ms Bligh going to sack the Transport Minister Rachel Nolan over this bungling or will she just pass the buck as usual?

"The Bligh Labor Government must also explain where the money is coming from to pay this fine. Ultimately, will it be commuters who have to pay through higher ticket prices or reduced services such as security on train platforms?

"Once again, Queenslanders are paying the price for Bligh and Labor's financial mismanagement and incompetence."

Mr Langbroek called on Ms Bligh to now adopt the LNP's policy and stop the privatisation of these assets.

"Justice Logan's comments that the privatisation represents 'truly radical change' and that 'Queensland Rail utterly failed to consult with their workers' underlines why Bligh and Labor must stop their plan to privatise, or at the very least, give Queenslanders a say," he said.

Ms Simpson said Ms Bligh and Labor lied about their privatisation plans ahead of the last election and as a result, Queenslanders had never had a say on the sale of Queensland Rail or the other assets that form part of Labor's fire sale.

"This Federal Court ruling and the massive fine – the maximum penalty allowable – confirms that the proposed sale of Queensland Rail has been handled amateurishly, negligently and dishonestly by Bligh and Labor," she said.

[mufreight]

Sorry Jonno but I would dispute your statement that no laws were broken.

Hang on No laws were broken.  The court has only judge that QR did not consult in accordance with an Enterprise Barganing Agreement.  An obligation but in no way the law.

Workplace agreements are made under civil law and are created as a legal document and ratified by the industrial relations courts.
Failure to comply is an offence under industrial law and in this case the government has plainly broken that legally ratified agreement and has thus breached the industrial law as it exists in this state.

[ozbob]

From the Courier Mail click here!

QR float on track, but maybe at a discounted price

QR float on track, but maybe at a discounted price

    * Tony Grant-Taylor
    * From: The Courier-Mail
    * June 27, 2010 8:17PM

AN occasional Pacific National-branded train, chockers with general freight, trundles through the level crossing next to The Courier-Mail building in Bowen Hills in Brisbane.

But up in the central Queensland coal fields, where the money in freight haulage is really made, coal trains bearing the PN logo are becoming more and more common.

And they'll continue to do so. Everything else being equal, PN - part of the Asciano group which also runs the Patrick ports operation across the eastern states - is targeting 30 per cent of the coal haulage business in Queensland by 2015.

And it's on track to get that, according to David Irwin, Asciano's divisional general manager, coal.

Asciano recently made its latest inroad into what, not so many years ago, was a market monopolised by Queensland Rail.

It picked up a 10-year haulage contract, worth a total of about $775 million. It involved the carriage of 16.5 million tonnes of coal a year for Anglo Coal Australia, part of the London-based international mining giant Anglo American.

Asciano has operated in Queensland's coal haulage industry for not much more than a year - although it has been in general freight for five years.

But in that year, it has won contracts from a string of coal companies including Xstrata Coal, Rio Tinto, Anglo and Macarthur Coal.

But comment in the wake of the Anglo deal - that PN's contract wins in Queensland could undermine, or at least devalue, the State Government's planned float of QR National - is largely misplaced.

The value achieved in the float, assuming it goes ahead, despite the push by Queensland's coalminers to buy QR's rail track, will be much more dependent on the state of world equity markets. The current global market volatility is the last thing the Queensland Treasury and its merchant banking advisers would have wished for.

QR National Coal executive general manager Marcus McAuliffe says: "While we are disappointed in Anglo's decision, we understand that in a competitive environment our customers will sometimes use other providers.

"At the same time, it is important that QR secure contracts that return commercial outcomes for our shareholders.

"QR is also benefiting from the competitive nature of coal haulage in Australia and with recently awarded contracts is doubling its market share in NSW to approximately 30 per cent." And it is not as though Anglo has been entirely lost. McAuliffe says QR National will continue to transport about half of Anglo's

tonnes in Queensland once (the PN) contract comes into effect.

Asciano, as has been well reported, is against the Government's plan to float QR National as an integrated business owning both its current track and freight operations - a structure PN argues will discriminate against it.

But QR reckons Asciano's inroads into its Queensland monopoly put a lie to the argument that access for competitors is difficult.

Says McAuliffe: "Within the context of the current debate about the privatisation of QR National, there can be no clearer evidence (than PN's Anglo contract) that the robust access environment in Queensland does and will continue to work to promote competition."

While fiercely competitive, Irwin and McAuliffe agree they are not, happily, swapping Queensland and NSW contracts in a static market.

Indeed, in both Queensland and NSW, total coal output is on the rise and looks like being that way for a long while yet, the proposed resource super profits tax permitting.

So while PN is taking market share from QR in Queensland, and QR from PN in NSW, both are nevertheless also growing their businesses as the coal haulage pie gets bigger.

That will boost QR National's growth story to investors as it markets its proposed float.

QR chief executive Lance Hockridge recently spent 10 days in the US and met some 40 institutional investors.

He came away encouraged that despite volatile equity markets, big investors there were still interested in looking for "high-quality" investment opportunities.

One analyst, who does not want to be named, says: "Even in tough times you can get away good floats, although not necessarily without taking a price discount."

Take construction and engineering group Valemus, the former Bilfinger Berger Australia, which is in the process of being floated off by its German parent.

It may look nothing like QR, but both groups can be seen as providing investors with exposure to areas of the Australian economy that are likely to see sustained growth in the foreseeable future. These are exposure to Asian commodities demand and the infrastructure Australia needs to build, if it is to make the most of servicing that demand.

But to float in the current market, the Germans will have to accept a price for Valemus significantly below what they could have got, had markets maintained their earlier bullishness. It's a price they've taken because they want their money back in Europe to apply to investment there.

The State Government may well be prepared to accept whatever price it can get, within reason, to get the QR float away before year's end.

Anna Bligh and Andrew Fraser will want the money in the bank long before the next election, along with a drop in anti-privatisation sentiment.

[justanotheruser]

The politics regarding the courts decision are most interesting in terms of responsibility.
Ultimately the persons responsible are the Premier, the Treasurer and the Transport Minister who knowingly instructed the management of QR to break the law in my opinion.  
If as they will undoubtedly claim they were not informed then they are incompetent as Managers of the public assets of this state, if they were informed then they are arrogant and corrupt having possibly broken the law and have again exhibited their absolute contempt for the people of this state who employ them.
The CEO of QR Mr Hockridge by following the government directions and failing to refuse to continue with the privatization until such time as the legally required consultations had been completed is also a responsible party and together with the Premier, Treasurer and Minister perhaps could be personally liable not the QR organisation.
Perhaps it is time for the Governor to bring this farce to an end and prorouge parliament and dismiss the government and call an immediate election thus allowing the voters of this state to voice their opinion in this matter.

One does not have to follow instructions if they are not legal. therefore the legal blame rests on QR management.  In reality things may not be so simple but that is not something the law takes into consideration. Of course if he had refused on the grounds of the agreement and been sacked then I'm sure it would have been leaked so I doubt the govt. would have sacked QR management.

Lets not have an election before we have to. That at least is something NSW has. The elections dates are basically set in stone due to a law an independant forced the government to introduce in the early 1990's

I certainly agree that these agreements are legally binding documents and failure to follow is breaking the law.

[ozbob]

From the Courier Mail click here!

QR float 'too big a risk', says QIC executive

QR float 'too big a risk', says QIC executive

    * by James McCullough
    * From: The Courier-Mail
    * July 07, 2010 11:00PM

THE chief executive of the Queensland Investment Corporation yesterday cast serious doubts on the State Government's plan to float QR National on the stock exchange later this year.

Addressing a major University of Queensland debate on the controversial privatisation plan, Doug McTaggart said it was becoming increasingly difficult to float assets on the stock exchange.

"This is not a good IPO market – and it is deteriorating," Mr McTaggart said.

His comments come a day after the German construction giant Bilfinger Berger pulled the $1.3 billion float of its Australian arm, Valemus, citing the current "adverse conditions" on the stockmarket.

Professor John Quiggin, a research economist and member of the Australian Research Foundation, agreed, saying he was against privatisation via public floats.

"I have a strong view that public floats are the worst way to get companies to privatise," Professor Quiggin said.

Mr McTaggart would not be drawn on whether the Government should accept the $5 billion mining company bid for QR's below-rail assets (track) or proceed with its intended IPO. He said QR National should be privatised and would be in far better hands in the private sector.

He pointed to the cancelled and embarrassing Queensland Rail Riverfire party in August 2008 to illustrate his point.

QR had intended to host a lavish $30,000 party for Riverfire for all its major coal company clients, who contributed the bulk of the rail group's bottom line, at the plush Siana bar in the city. After media coverage the relevant minister at the time, John Mickel, buckled and decided to cancel the party on the day of Riverfire, much to the chagrin of QR executives and invited guests.

Ironically, QR had to pay a cancellation fee almost as large as the cost of the party.

Mr McTaggart said this was a classic illustration of why QR National should be in the private corporate arena and not government owned.

"A lot of those guests would have had other places to go. After all the corporate gravy train is not shallow," he said.

"To me that highlights a sort of sovereign risk in the company (QR) which makes it very hard to compete (with the private sector)."

Mr McTaggart said QR had been losing market share in recent years, falling from 100 per cent of the Queensland market in 2008 to 83 per cent in 2010 and it was likely to further diminish.

"QR would be a very good candidate for privatisation," he said, although not elaborating on the exact method of getting the company off the government balance sheet.

The bleak outlook comes as a survey from the Investment and Financial Services Association reports that investor sentiment had slipped back into negative territory.

IFSA CEO John Brogden said: "There is no doubt that economic uncertainty in Europe, the continuing soft employment data in the US and the effects they have on our market are serious concerns to Australian investors."

Only 40 per cent of respondents expected the Australian sharemarket to perform better over the next quarter.

[#Metro]

Wasn't it the Courier Mail that did the mud-stirring, which put the heat on the minister, which canceled the party? 

[Jon Bryant]

This is the same bloke that has invested in Airport Link and Northern Link.  He wouldn't know a good investment if he ran into one.

[tomato]

MEDIA RELEASE

ARTC COMMITS TO EQUITY INTEREST IN QCIRG
On 1 July 2010 the Australian Rail Track Corporation (ARTC) Board resolved that ARTC will commit to take up an equity interest in Queensland Coal Industry Rail Group (QCIRG).

ARTC will become a party to a Subscription Agreement with other QCIRG consortium members.

Issued: Thursday 8th July 2010

http://www.artc.com.au/library/news_2010-07-08.pdf......

[ozbob]

From the ABC News click here!

Fraser tight-lipped over Qld Rail sale timing

Fraser tight-lipped over Qld Rail sale timing

By Chris O'Brien

Treasurer Andrew Fraser says the State Government will wait until the last moment in deciding when to float Queensland Rail's (QR) coal freight business.

Mr Fraser has acknowledged warnings the current market for public floats is not good.

But he says QR National will not go on sale until the end of the year.

"Our timing, we've always said, is the fourth quarter, subject to market conditions," he said.

"Obviously no-one is going to pursue that as the timing if the market is not there.

"It's a big hard-nosed commercial call ultimately by the Government, so it will be one long night."

[mufreight]

The government sold the forestry for what was at best half the asset value with no enforceable means of ensuring that the asset will not be simply stripped over the next few years and then surrendered to the government as a worthless shell leaving taxpayers with a massive bill to rebuild the asset.
This has been the scenario with every rail asset that governments have sold to private enterprise in Australia and Tasmania to date.
The value that this government has placed on the rail assets is considerably less than the value of those assets and  estimated price that a private bidder will offer somewhere between half and two thirds of that figure, obviously well past the point in time when Madam Blight and her Toy Boy Treasurer should accept reality and bin their flawed asset sales concept. 

[somebody]

But you'd agree that the ARTC formation was a success wouldn't you, mufreight?

[mufreight]

Yes ARTC has to this time been a success but it is effectively a Commonwealth Government GOC not a privatized government business and totally different in its scope relative to rail operations in this country to what is proposed for QR National by the Queensland Government which is a sell off to a private entity.
QR National and ARG have become quite profitable with their operations outside of the state of Queensland operating over the ARTC administered standard gauge network.

But you'd agree that the ARTC formation was a success wouldn't you, mufreight?

[somebody]

It's the ARTC formation with the sale of NR which is the model that Qld should be following, although it could just be managed by the existing ARTC.  I don't see a need for a new organisation.

[ozbob]

Opposition Statement

http://www.fionasimpson.com.au/Pages/Article.aspx?ID=737

Investment guru questions Qld Rail sale

Thursday, 8 July 2010

The Bligh Labor Government's fast tracking of the sale of Queensland Rail has been questioned by its own top investment guru, the State Opposition said today.

Shadow Treasurer Tim Nicholls said Queensland Investment Corporation chief Doug McTaggart had questioned why the Bligh Labor Government was selling Queensland Rail in a "deteriorating" environment for public floats.

"The cancellation of the float of Valemus this week because of a lack of interest from investors should be sounding alarm bells for Bligh and Labor," he said.

"Mr McTaggart has added his voice to the chorus of criticism about Labor's asset sales and the way these assets are being sold in an uncertain market.

"Queenslanders will be ripped off if Labor goes ahead with its privatisation plans, and Anna Bligh should be cancelling these asset sales immediately."

Shadow Transport Minister Fiona Simpson said Mr McTaggart's criticism came hot on the heels of a Federal Court decision imposing a $660,000 fine on Queensland Rail for failing to consult workers over the proposed structural changes.

"Treasurer Andrew Fraser claimed in June 2009, the assets would be sold over the 'next three to five years', but now Bligh and Labor are pushing ahead with the sale of Queensland Rail by the end of the year," she said.

"The fact Bligh and Labor are pushing ahead with this timeframe for the asset sales is proof the sale is all about Labor's political interests rather than what is in the best interest of Queenslanders."

[ozbob]

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
10/08/2010

Statement by Treasurer Andrew Fraser

The Government resolved last year to put QR National to the market through an IPO in the fourth quarter of 2010.

Since that time we have received a proposal from a group of coal companies to purchase just the track.

We have been in discussions with the group of companies since then, and those discussions continue.

The Government is not going to comment on ongoing commercial negotiations other than to say that the government is determined to secure the best deal for taxpayers and the long term interests of the Queensland economy.

As such, preparations continue for an IPO in accordance with our original timetable.

[ozbob]

From the Courier Mail click here!

Miners raise Queensland Rail sale stakes

Miners raise Queensland Rail sale stakes

    * Tony Grant-Taylor and Ursula Heger
    * From: The Courier-Mail
    * August 11, 2010 12:00AM

THE State Government may reconsider a planned float of Queensland Rail after a consortium of coal miners lifted its bid for the state's railway assets to $5.35 billion.

A new offer by coal miners led by BHP Billiton, Rio Tinto and Xstrata - up $500m on their original bid - has forced a rethink.

Until now, the Government was firmly in favour of seeing QR National become a major listed public company owning both Queensland's coal railways and the locomotives and wagons that transport our coal for export.

But both Premier Anna Bligh and Treasurer Andrew Fraser on Tuesday indicated negotiations with the companies were being taken more seriously than when their offer was first made. The coal companies have reportedly increased their indicative bid for the railway assets from $4.85 billion to up to $5.35 billion.

At the same time, a volatile stockmarket means there are risks in trying to float QR despite QR's assertions that international investors would line up in droves.

Under the float scenario, the Government's aim would be to raise $3 billion, with more to come down the track as the state would retain a 25 to 40 per cent stake.

Both the Premier and Mr Fraser declined to comment on any increase in the coal companies' offer on Tuesday.

Ms Bligh said the Government was in serious discussions with them but was "some way away" from a decision.

"We are in the middle of intense and complex commercial discussions with these companies; it is not helpful for me to be commenting on that on a daily basis and I don't intend to, other than to say, we are taking them seriously, respectfully, and working through issues with them," she said.

The Government spilt QR's coal freight arm, QR National, from the publicly owned passenger network on July 1 despite union and public anger at the $15 billion sell-off of the state's toll roads, rail and ports.

Mr Fraser also spoke of "commercial negotiations" with the coal companies which were continuing. But he also said preparations for QR National's possible stockmarket float, scheduled for the December quarter, were also ongoing.

The coal company consortium, led by former New South Wales premier Nick Greiner declined to discuss its offer yesterday, saying only that discussions were continuing.

[justanotheruser]

I wonder how much the government is investing in promoting QR for the sell off. How much are they spending on having a staff member at city stations stand next to a stand that provides no information at all but shows a picture and says QR has been around for a long time. If things are cash strapped then surely spending money on this is unwise.

[ozbob]

From the Brisbanetimes click here!

Queensland Rail opens books to miners considering purchase

Queensland Rail opens books to miners considering purchase
August 19, 2010 - 10:45AM

A consortium of Queensland mining companies seeking to buy the state's coal rail tracks has been given access to QR National's books.

The Queensland Coal Industry Rail Group has been seeking access to the books to undertake due diligence checks on their $5 billion bid for the coal freight network.

A source told The Australian Financial Review that the access had been approved and checks had been under way since earlier this week.

The consortium has made the offer as an alternative to the Bligh government's float of QR National, which it hopes to complete by the end of the year.

Treasurer Andrew Fraser and Premier Anna Bligh have previously stated they are taking the miners' offer seriously.

Analysts expect a prospectus for QR National to be available within two months if the miners' bid is not accepted.

AAP

[ozbob]

From the Brisbanetimes click here!

QR National rolls out three-year job guarantee

QR National rolls out three-year job guarantee
August 23, 2010 - 5:15PM

QR National employees have accepted new workplace agreements ahead of the rail company's public float that guarantees employees their job for three years.

QR's bulk haulage network was split from the state-owned corporation on July 1 and will be floated later this year under the government's privatisation plan.

Managing director Lance Hockridge said the 13 new enterprise agreements would provide security and certainty for employees leading up to the float of the company and beyond.

"These agreements also provide certainty for potential investors in QR National by cementing the industrial framework within which the company will operate for the next three years," he said.

The agreements, which now need to be approved by Fair Work Australia, include a one-off $4000 payment, an extension of the employment guarantee from two to three years and an average yearly wage increase of four per cent for three years.

Employees will also continue to receive 14-weeks paid maternity leave.

Eligible employees will also receive $1000 shares in QR National, as previously announced and separate to the enterprise agreements.

Meanwhile, a multibillion-dollar offer made by a consortium of the state's largest coal businesses to buy the rail lines is still under consideration.

A decision on the alternative to the government's float is expected within weeks.

AAP

[mufreight]

With the present political climate as expressed by the voters of this state in the federal election it is obvious that if the State Government continues down the yellow brick road to asset sales it is the road to political oblivion, what odds on a backflip?     before this state goes to hell on a

[ozbob]

From the Queensland Times click here!

MP disputes claims over QR sale

MP disputes claims over QR sale

Zane Jackson | 25th August 2010

AN IPSWICH MP has questioned Premier Anna Bligh's attempt to downplay the role of asset sales in Labor's federal election battering in Queensland.

Senior Labor figures have blamed the State Government's unpopularity for the loss of eight seats in Queensland, with voter disapproval of asset sales believed to be a key factor.

Premier Bligh has argued Labor's election win in the Ipswich seat of Blair – where more than 700 workers are employed at QR National workshops – is proof privatisation is a minor issue for voters.

But Bundamba MP Jo-Ann Miller yesterday claimed her boss was drawing the wrong conclusion. She said ALP MP Shayne Neumann was returned by Ipswich voters because he had taken a strong anti-privatisation stance.

"In Blair, Shayne Neumann came out very publicly against privatisation. I think that's why he didn't get a massive swing against him, because people knew he stood up for workers' rights," Mrs Miller told The Queensland Times.

And she pointed out that the Townsville seat of Herbert, which also has a large QR workforce, had been won by the Coalition.

Mrs Miller is an opponent of rail privatisation, although she has rarely voiced concerns publicly.

Her fellow state Labor MPs Lindy Nelson-Carr and Dean Wells have called for Ms Bligh's privatisation policy to be reconsidered at next week's Labor caucus meeting.

Mrs Miller said it would "appropriate" for the issue to be raised at the meeting.

However, Premier Bligh has already insisted the asset sales will continue.

"I'm not saying that privatisation was not an issue at all, but to think that it was the only issue in my view would be also missing some of the things the electorate is talking about," she said.

Ipswich West MP Wayne Wendt said he backed Ms Bligh as leader and fully supported her decision to sell State assets.

"We'll identify what we can take out of the federal election and we'll learn some lessons," Mr Wendt said.

Transport Minister and MP for Ipswich Rachel Nolan was not available for comment yesterday.

State Opposition leader John-Paul Langbroek yesterday challenged Ms Bligh to put the asset sales to a referendum if she truly believed she had a mandate for privatisation.

QR National – the coal and freight operation formerly part of Queensland Rail – is on track to be publicly listed for sale by year's end. Workers have been guaranteed there will be no lay-offs for three years after the sale.

[ozbob]

From the Brisbanetimes click here!

Bligh says she'll consider alternatives to asset sales

Bligh says she'll consider alternatives to asset sales
Jessica Marszalek
August 25, 2010 - 11:55AM

Queensland Premier Anna Bligh says she's happy to rethink her privatisation plan if her MPs have another way to fund new projects across the state.

But she says that's unlikely to happen.

Ms Bligh, whose leadership has come under pressure since Labor's weekend drubbing in Queensland, says she accepts voters had vented at federal and state Labor.

She has promised to listen more and do better but has vowed to push ahead with the unpopular privatisation plan, despite rumblings from within her government.

Backbenchers Lindy Nelson-Carr and Dean Wells are two who are expected to propose a rethink of the plan at Monday's caucus meeting.

Ms Bligh says she welcomes discussion but a rethink of the asset sales meant a rethink of projects like hospital works in Cairns, Mackay and the Gold Coast.

"All of those are underpinned by the decision to take this asset sale," she told ABC Radio today.

She said she wanted to hear from MPs if they had fresh ideas.

"This is a very controversial issue," she said.

"The last thing I want is a caucus that doesn't think about these sorts of issues.

"If they have ideas about doing it differently or projects that they we should cut, then I'm happy to hear that."

She said government could "theoretically" cut some of its building projects but it had committed to contracts in most instances.

"They might have an idea I haven't thought of, and I'm never going to close my mind to that," she said.

"But unless they do, I don't believe it's in Queensland's interest for me to shut down building projects that are halfway finished, sack thousands of people, turn off the cranes and leave the framework there."

Ms Bligh said she understood the plans were unpopular but she had a mandate to lead the state and voters could decide at the ballot box in 18 months whether she had done the right thing.

Asked if she could rebuild her popularity, she said: "I have to believe that."

The premier said caucus would discuss ways to "rethink and refresh" how the government engaged with the community and would consider cost-of-living pressures that were hurting Queenslanders.

Deputy Premier Paul Lucas, Treasurer Andrew Fraser and Attorney-General Cameron Dick all ruled out challenging for Ms Bligh's job this week, which Ms Bligh insists she will hold until the next election.

AAP

[justanotheruser]

With the present political climate as expressed by the voters of this state in the federal election it is obvious that if the State Government continues down the yellow brick road to asset sales it is the road to political oblivion, what odds on a backflip?     before this state goes to hell on a

I hate how many voters are incapable of seperating state and federal issues. One poster on here said they were smart enough to do this but polling says they wearn't. If we look at NSW they keep voting in the labor party that they all claim to hate but they take it out on federal labor  even though federal labor policy was to take control out of NSW labor hands on things voters were not happy with the state govt about. Go figure. Stupidity wins again!

[longboi]

With the present political climate as expressed by the voters of this state in the federal election it is obvious that if the State Government continues down the yellow brick road to asset sales it is the road to political oblivion, what odds on a backflip?     before this state goes to hell on a

I hate how many voters are incapable of seperating state and federal issues. One poster on here said they were smart enough to do this but polling says they wearn't. If we look at NSW they keep voting in the labor party that they all claim to hate but they take it out on federal labor  even though federal labor policy was to take control out of NSW labor hands on things voters were not happy with the state govt about. Go figure. Stupidity wins again!

Ah, the follies of compulsory voting. Keep the plebs away from the polling booth...thats what I say.

[Golliwog]

Theres another theory that says the polls that are posted in the newspapers go on about how voters think this or that, but really are a load of junk. Like the ones in the last week where they asked people in the 3 independant electorates who their MP should side with for PM and 55% said Tony so that was all over the papers. My issue with this is if you read the whole article that 55% of voters was calculated by surveying something like 400 people. Biggish number when you look at it, but when you compare it to something like 70,000 voters in each electorate it doesn't really mean squat. I feel they incorrectly assume the randomness of opinions. While the people they survey are picked at random, opinions are not randomly or evenly distributed so its quite easy to get missleading polls. The sad thing is that these polls get clutched at and waved around by the media and even politicians as if they mean something.

Don't get me started on how much they read into these things, like how one paper will say a poll in QLD points to us being angry over the axing of Rudd, yet another paper will take the same poll and say its us being angry about Bligh and the state government.

[ozbob]

From the Brisbanetimes click here!

Bligh says she's 'got the guts' to see through public assets sale

Bligh says she's 'got the guts' to see through public assets sale
Daniel Hurst
August 30, 2010 - 10:44AM


Premier Anna Bligh insists her leadership is not under threat and she has the guts to see through her privatisation plans.

Ms Bligh today mounted a defence of her government's controversial $15 billion dollar assets sales program ahead of a caucus meeting this afternoon that she expects will be full of "frank" discussions.

MPs are expected to raise concerns in the wake of Labor's federal election bloodbath in Queensland, with some backbenchers already declaring publicly that doing nothing different is not an option.

Ms Bligh this morning visited inner-south suburb of Stones Corner to inspect progress on the second stage of the Eastern Busway, which she said was three months ahead of schedule.

The premier said the government had a "clear economic strategy" that included selling some assets to retire debt and allow investment in public infrastructure such as the busway.

"It's tough but you've got to have the guts to see it through," she told reporters.

Ms Bligh said backbenchers who had spoken out about Labor's drubbing in Queensland in the federal election, such as Brisbane Central MP Grace Grace, were simply echoing her own comments last week that Labor needed to hear the message from voters.

Ms Bligh said she was determined to "redouble" her and her team's efforts because voters expected them to do better.

She said the caucus meeting today would be a "very constructive opportunity" to discuss the government's plans.

Ms Bligh said she was happy for MPs to raise any issues of concern they had, although she urged them to suggest "positive" alternatives if they wanted changes.

Ms Bligh said the only alternative economic plan she was aware of was the LNP's suggestion that some infrastructure projects on the government's agenda should be "reassessed'.

She vowed to continue to focus on health, education, transport and cost of living pressures.

"What Queenslanders want to see is strong, stable government dealing with the issues that affect them every day," she said.

Asked if she thought she would still be leader by the end of the year, Ms Bligh said "absolutely".

Transport Rachel Nolan said she understood privatisation was "difficult" for some people and the government was "open to ideas".

But Ms Nolan said it was only thanks to the government's economic strategy that it could build public infrastructure projects such as the Eastern Busway.

Attorney-General Cameron Dick, who is sometimes touted as a potential future Labor leader, today repeated his assertion that he fully supported Ms Bligh.

The caucus meeting begins at 3pm.

[justanotheruser]

Theres another theory that says the polls that are posted in the newspapers go on about how voters think this or that, but really are a load of junk. Like the ones in the last week where they asked people in the 3 independant electorates who their MP should side with for PM and 55% said Tony so that was all over the papers. My issue with this is if you read the whole article that 55% of voters was calculated by surveying something like 400 people. Biggish number when you look at it, but when you compare it to something like 70,000 voters in each electorate it doesn't really mean squat. I feel they incorrectly assume the randomness of opinions. While the people they survey are picked at random, opinions are not randomly or evenly distributed so its quite easy to get missleading polls. The sad thing is that these polls get clutched at and waved around by the media and even politicians as if they mean something.

Don't get me started on how much they read into these things, like how one paper will say a poll in QLD points to us being angry over the axing of Rudd, yet another paper will take the same poll and say its us being angry about Bligh and the state government.

The TV show Yes Prime Minister showed an excellent example of how asking certain questions influences the final question. The questions are often leading you to form certain opinions.

[ozbob]

From the Brisbanetimes click here!

Assets sales badly explained, says Bligh

Assets sales badly explained, says Bligh
September 7, 2010 - 4:11PM

Queensland Premier Anna Bligh has admitted she underestimated the public's reaction to her plan to sell off $16 billion in state assets.

"When we first made the announcement I thought it was so clear how important our building program was that people would understand," she told reporters on Tuesday.

"It became obvious after a number of months that we hadn't explained that well enough.

"I think in hindsight it would have been better if we'd had more material to people as soon as possible after we made the decision."

The government has been accused of misleading Queenslanders after it announced the sale of bulk freight rail, forestry and ports assets just weeks after winning the March 2009 state election.

Ms Bligh said the decision came after the election.

"I can put my hand on my heart and say we did not make any decision to sell assets until after the election."

Ms Bligh declined to comment on a coal consortium offer to purchase the bulk freight track system separate from the rolling stock.

AAP

[ozbob]

From the Courier Mail click here!

Coal companies drop QR bid

Coal companies drop QR bid

    * James McCullough
    * From: The Courier-Mail
    * September 09, 2010 5:22PM

QUEENSLAND Rail is set to be floated on the Australian Stock Exchange later this year after the major coal companies withdrew their $5.1 billion bid for the below rail assets of the group.

The bid was due by tomorrow according to the Queensland Government deadline but at the 11th hour the coal consortium, the Queensland Coal Industry Rail Group (QCIRG) decided not to submit a bid.

The group, which comprises the largest coal companies in the country, said it could not satisfy its or the Queensland Government's requirements for the bid.

It now appears very likely the State Government will proceed with its initial plan to float QR National on the ASX in the last quarter of the year.

[ozbob]

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
09/09/2010

Statement by Queensland Treasurer Andrew Fraser

The Government notes the decision by QCIRG to not lodge a binding bid for the Central Queensland Coal Rail Network.

When the initial letter was received, the Government said it would take it seriously, and it has.

I thank QCIRG and its Chairman for the professional way in which they have conducted themselves. The State has invested significant resources in conducting this process, including the due diligence process.

The Government is committed to boosting efficiency and competition on the rail network, and the Government welcomes and shares the industry's commitment to work constructively on this front.

The Government has maintained its preparations to float QR National.

This is Australia's largest rail freight operator, with strong growth prospects on the back of Asia's demand for our resources. The State is confident of a successful float in the final quarter this year.

[ozbob]

From the Courier Mail click here!

Major coal companies declare asking price too high for QR National

Major coal companies declare asking price too high for QR National

    * James McCullough and Steven Wardill
    * From: The Courier-Mail
    * September 10, 2010 12:00AM

QUEENSLAND Rail is headed for the stockmarket within weeks after a coalition of big coal companies dropped a $5.1 billion bid for its coal-freight network.

The Bligh Government will attempt to crash through with the controversial $7 billion public sale – one of the biggest in Australia – in November against a tide of opposition and with the risk of trouble-making by the mining companies.

Insiders said the coal consortium will not go ahead with the much-publicised offer because the $5 billion could not be justified.

"They reported back to their investment committees and they came back and said the figures did not stack up," one insider said last night.

On the eve of today's deadline for formal offers, former NSW premier Nick Greiner, who spearheaded the miners' bid, told Treasurer Andrew Fraser there would be no offer lodged. The group – which includes giants Rio Tinto, Xstrata and BHP Billiton – said it could not satisfy its own or the Government's requirements.

The decision limits the Bligh Government's options and once again puts it on a collision course with unions, and potentially some Labor backbenchers, who favoured the miners' offer over the float.

It also comes at a time when investor appetite for share offers is in doubt amid market volatility and the cancellation of some high-profile floats.

Mr Fraser told The Courier-Mail last night the Government had taken the offer seriously but always favoured the float.

"Obviously, that now clears the way for a float of QR National," he said.

"The Government's position has always been that keeping QR National together was the best result for QR workers and the best result for the Queensland economy."

In the face of widespread anger at asset sales, Mr Fraser said the Government's task now was to promote the sale as an "investment opportunity".

However, there are fears the miners could launch a campaign similar to the highly effective opposition to the resources tax in an attempt to counter industry concerns that one company will own both tracks and operate trains.

Mr Fraser said that he had sought assurances from Mr Greiner that an anti-float campaign would not happen.

"He has indicated that the matter is closed," he said.

Mr Greiner would not elaborate on the reasons for withdrawing the bid.

"Queensland Coal Industry Rail Group appreciates the efforts made by the Queensland State Government during negotiations," he said.

It is understood there were two key stumbling blocks to the coal companies proceeding.

The first was the risk the State Government wanted the consortium to take to satisfy their guarantee requirements.

The second, and of most concern, was a reluctance to proceed with the offer after the consortium was given open access to QR National's books.

It is believed several consortium members took a good look at QR National's figures and decided they did not justify a $5 billion bid.

While some Government insiders were never convinced the miners' offer was serious, Mr Greiner had said it was a viable alternative to the float.

He said the consortium would continue to talk to the State Government over its carve-up of the rail group.

Formal offer documents for the float are almost complete, with the state only days away from printing the prospectus for the capital-raising that could see the group valued at an estimated $7 billion. The Government would retain between 25 and 40 per cent of the company.

While unions remain opposed to any sale, Australian Industry Group's Queensland director Matthew Martyn-Jones last night urged the Government to proceed with the float.

[ozbob]

From the Brisbanetimes click here!

Failed rail sale talks cost taxpayers $1.5m

Failed rail sale talks cost taxpayers $1.5m
September 10, 2010 - 12:29PM

A failed bid by coal miners for central Queensland coal rail tracks has cost the taxpayer an estimated $1.5 million.

The state government is pushing ahead with its plan to float Queensland Rail's coal-freight haulage business and tracks on the stock exchange, after coal miners yesterday abandoned an alternative proposal.

The Queensland Coal Industry Rail Group had put together an estimated $5 billion bid to counter the planned QR National float.

But yesterday afternoon the consortium said it would not be lodging the offer as "QCIRG is not able to satisfy its, or the Queensland government's, requirements for the bid".

Queensland Treasurer Andrew Fraser told ABC Radio today the government was involved in genuine talks with the miners, but he thought they would not be able to meet the September 10 deadline.

"I always held the view that I thought that would be difficult for them," he said.

"We spent about $1.5 million on the process of engaging with the coal companies.

"When it comes to the notion that coal companies had a really tough time of it, my heart doesn't really bleed for them.

"My job is to be tough on behalf of the taxpayer. They were given every opportunity and we made concessions."

The coal miners had been seeking to buy the tracks but not the coal-haulage business, arguing keeping the two parts of the business together as a private company would be anti-competitive.

The Queensland Resources Council accused the government of taking too long to seriously engage with the miners on the alternative proposal.

Opposition treasury spokesman Tim Nicholls said the mining consortium told the Liberal National Party that the government didn't give them enough time or enough data to get the deal through.

"Andrew's right, they couldn't get all their ducks in a row," Mr Nicholls said.

"The best thing to do is sink the float and stop the sale."

The government is expected to announce details of the float this month.

The Bligh government's privatisation agenda, announced after the last state election, has been a difficult issue for the Labor party, which slumped in the latest Newspoll results yesterday.

The government argues the privatisation of assets such as the Port of Brisbane and the Queensland Motorways tolling business will raise more than $15 billion and improve the state's balance sheet.

But the opposition and unions have called for the government to scrap the plans.

AAP

[ozbob]

From the Courier Mail click here!

QR National float back on track after competition ruling

QR National float back on track after competition ruling

    * Louise Brannelly and Elisabeth Behrmann
    * From: The Courier-Mail
    * September 15, 2010 12:01AM

THE Bligh Government has scored another victory for QR National as it pushes ahead with plans to float the rail freight operator later this year.

The National Competition Council yesterday rejected an initial application by Asciano Group to have Queensland's coal rail freight network brought under the oversight of the Australian Competition and Consumer Commission.

In a draft ruling, the NCC said access for third parties to the tracks under Queensland's authority was "effective" and should remain subject to state control for 10 years.

But Asciano is not going to go away quietly.

In May, Australia's largest port and rail operator applied to the NCC to have the Queensland coal network placed under national jurisdiction, citing possible anti-competitive behaviour after its upcoming float.

At the same time, the Bligh Government had sought approval from the NCC to continue having oversight of the network.

Yesterday Asciano managing director Mark Rowsthorn said the draft ruling was only the first step in a multi-stage process, with Federal Treasurer Wayne Swan to make the final decision.

The closing date for further submissions to the NCC is October 14.

Mr Rowsthorn said the Queensland Government had already made significant legislative concessions following Asciano's application to the NCC, including enhancing transparency and reporting obligations.

"Without the threat of declaration (under the National Access Regime), the Queensland Government would be proceeding with a very sub-standard float," Mr Rowsthorn said.

"However, we strongly believe the vertically integrated structure of QR National is still highly anti-competitive and a risk to potential investors in the company, who may see the company separated in the future, in a similar manner to Telstra."

But from the Bligh Government's perspective, yesterday's draft ruling was another hurdle cleared as it heads towards a $3 billion-plus initial public offering of QR National.

Last week, QR National's major coal mining customers abandoned their $5.1 billion bid to buy just the track network.

State Treasurer Andrew Fraser said the draft ruling was a strong indication the network would remain under the watch of Queensland's own independent regulator.

"This decision will deliver certainty to all access seekers and other parties, not to mention potential investors in the QR National float," he said in a statement.

And while not naming Asciano, Mr Fraser pointedly noted that there were "others" trying to cruel the float.

"These are the same people who have complained about the supposed lack of competition in the Queensland coal network, despite telling their own investors that they are already forecast to achieve 30 per cent of the Queensland market share by 2020," Mr Fraser said.

Earlier in the day he told State Parliament the Government was in a position to begin pre-registration by the end of the month, paving the way for a QR National float by year end.

[ozbob]

From the Brisbanetimes click here!

Fraser launches drive for QR National investors

Fraser launches drive for QR National investors
Petrina Berry
September 19, 2010 - 12:18PM

Investors have been formally invited to buy shares in the Queensland's rail freight business, QR National.

Queensland Treasurer Andrew Fraser launched the pre-registration stage today, signalling the start of its planned $4 billion float of QR National as part of its asset sales.

Mr Fraser announced a number of incentives for Queensland's `mum and dad' investors or retail investors who take part in the pre-registration process.

"Retail investors will have an opportunity to participate at a discount to institutional investors," Mr Fraser said.

He also said retail investors will pay no more than a specified maximum price per share and receive loyalty bonus shares if they hold their shares for a specified time.

The pre-registration stage closes on October 8 and the share offer is expected to open two days later.

State Opposition Leader John-Paul Langbroek, who is against the asset sales, said it was a bad time to sell.

"I don't know too many Queenslanders or Australians who have had to sell anything over the last couple of years and have received a premium price for it," Mr Langbroek said.

"Very clearly anyone who's had to sell anything has had to do so in a fire sale and not receive what they would have at the top of the market.

"And we have seen a number of share floats that had to be cancelled or postponed because of the poor reception from the market and that is clearly putting at risk one of Queensland's great assets that Queenslanders don't want sold anyway."

AAP