Qld Budget 2009 Asset Sales - articles and discussion

[frereOP]

Sorry FrereOp but as a taxpayer I disagree, the sale of assets is not justified as you assert.

Sorry mufreight, the sale IS justified.  Any investment that is not returning the best value for money needs to be liquidated and that money invested elsewhere.  In this case in a whole range infrastructure projects which have (the water grid) or have not yet (the Kippa-ring rail line) been built.  As much as you might like, you cannot have your cake and eat it too.  It's QR national OR something else.  So mufrreight, nomnate what goes?  Hospitals?  Police?  Schools?  Security of water supply? etc etc etc

This government was elected to provide the services and infrastructure that we as taxpayers pay taxes for government to provide.

It was not elected to collect sacred cows.  By selling assets and investing in others it is doing EXACTLY as you say.

With the passing of the GFC there is no longer justification for this government to sell off OUR assets...

crap.  The GFC is irrelevant.  It may have been used as an excuse (spin), but it is irrelevant

...the government did not seek a mandate to do so prior to the last election and in the face of the opposition of some 80% of the states voters must be political suicide

Mandate is a term used by oppositions to convey the impression that a government needs popular approval to do anything.  By getting elected, the government DOES have a mandate.  That's why we elect governments and don't have referendums on everything.

, if this incompetent and duplicit (sic) government has any integrity they would have before taking this path of total rejection of Labor principals and selling off revenue producing assets either held a referendum to gain a mandate from the actual owners of the assets to sell them.

Sacred cows.  You have a right to feel peeved if you don't agree but you also have a right to accept that the government has been elected to govern and will do things which some people will not agree with.  Get over it!

This did not happen simply for the same reason that they did not declare their intentions prior to the election, the voters of this state would not approve and they would not have been elected.

Maybe but that doesn't mean they shouldn't do it.  What the public wants is not always good policy. Good governments will make unpopular decisions and risk getting voted out.  But getting voted out rarely happens in reality.  Remember Council amalgamations?  Remember Sunday trading? Remember fluoride?  Remember water restrictions?  Remember Telstra sale, Remember the Qantas sale?  Remember the Commonwealth Bank sale? Remember GST?  Remember the Iraq war?  When was the last time a government got voted out for making unpopular decisions? It is VERY rare.  Governments get voted out for being incompetent, not for making unpopular decisions, and only if the alternative is credible.

[Stillwater]

Part of the asset sales money, presumably, will go into the CRR project.  Does anyone know the status of the business case for CRR? 

[#Metro]

QLD Gov privatised Suncorp, and I love Suncorp!!!

[frereOP]

Part of the asset sales money, presumably, will go into the CRR project.  Does anyone know the status of the business case for CRR? 

I think the money will be used to retire existing debt.  ie to invest in infrastructure that has already been built like the SEQ Water Grid including the WCRWP, the advanced WWTP's and upgrades to Hinze dam.  No new projects as far as I know.

[mufreight]

Part of the asset sales money, presumably, will go into the CRR project.  Does anyone know the status of the business case for CRR? 

No chance, the Queensland Blight has stated a number of times that any return from the asset sales will be used to retire debt, but then we must remember that Dictator Bligh and her incompetent government has already expended the money to attempt to buy votes so when this infrastructure is sold off and the revenue stream ceases the credit rating then drops again with nothing left either to produce revenue or available to sell off.
In the interim period transport and other costs will rise and jobs will go as the purchasers of these assets sold recover their investment and maximise the return on their investment while the run the infrastructure down.
New Zealand, Tasmania, South Australian and New South Rail systems being glaring examples of this, with government then being forced either to buy back the infrastructure or subsidise the private entity that was created at greater cost to the taxpayer than would have been the case if the assets had remained in public ownership with higher levels of employment the costs of which is in turn offset by the taxes paid and the money those employed spend within the community effectively providing more employment.

[somebody]

I think you may mean Victoria rather than NSW there.  Pretty sure that the entire NSW network has always remained in public ownership, with most of the useful country tracks leased to the ARTC.

I would certainly agree with your points with regard to the below rail assets, mufreight.  Although as I have said before, I remain comfortable with the notion that the above rail business can be privatised.

[frereOP]

... so when this infrastructure is sold off and the revenue stream ceases the credit rating then drops again with nothing left either to produce revenue or available to sell off.

Exactly wrong!

• reducing debt will increase the credit rating.  This lowers interest rates which IS therefore a revenue stream.
• QR National will be paying for its access to rail infrastucture (track and facility access).  This is a revenue stream
• 
  the assets that the sale of QR National will pay for are a revenue stream or provide a public benefit in some form (water, health care, public transport)
• the GST revenue from QR National's operations is a revenue stream

I have still to see a valid argument as to why assets like QR should not be sold.  Keeping them for the sake of keeping them just doesn't cut the mustard.  Lets have some intelligent debate about this, not just a one sided political whinge.

[somebody]

I have still to see a valid argument as to why assets like QR should not be sold.  Keeping them for the sake of keeping them just doesn't cut the mustard.  Lets have some intelligent debate about this, not just a one sided political whinge.

What about the below rail assets?  Do you think they should be sold?  They are a natural monopoly, and I don't think it makes sense to have private ownership of such things.

And you also have the examples of NZ, Tas, Vic where they did sell the tracks, or at least a lease on them and it was disastrous.  Not too sure what occurred in SA.

[mufreight]

I think you may mean Victoria rather than NSW there.  Pretty sure that the entire NSW network has always remained in public ownership, with most of the useful country tracks leased to the ARTC.

I would certainly agree with your points with regard to the below rail assets, mufreight.  Although as I have said before, I remain comfortable with the notion that the above rail business can be privatised.

In New South Wales the right of way (corridor) has remained in public ownership but the track itself and the below rail infrastructure became the responsibility of NR/Pacific National who have not maintained the assets in a usable condition and have withdrawn services using the poor condition of the infrastructure as justification to close the lines and transfer the freight to road, for a number of the grain lines the NSW Government has now been forced to spend hundreds of millions of taxpayers money to bring these lines back to an operable standard for the operation of grain trains operated by AWB.
The road system is incapable of moving this freight without spending billions on the infrastructure and the direct costs of moving the volume of grain push up the sale price of that grain to the point that it is no longer viable to export it for sale.
With competitive third party access for which is already taking place in this state with PNQ and Freightlink the sale of QRN only removes one of the competing operations from the rails lessening the competition and the revenue stream.
The proposition posed by frereOp is a proven failed concept that has simply increased costs and reduced employment, it is not a case of retaining ownership for the sake of keeping them, there are sound financial and social reasons for keeping sound revenue producing assets in Government ownership. 

[somebody]

In New South Wales the right of way (corridor) has remained in public ownership but the track itself and the below rail infrastructure became the responsibility of NR/Pacific National

First I have heard of this.  My understanding is that the blue and green tracks on this map: http://www.artc.com.au/library/NswV3.pdf are owned by the NSW government and under a long term lease to ARTC.  All other tracks are owned and maintained by RailCorp (i.e. NSW government) last I heard.  Do you have information to the contrary?

[frereOP]

What about the below rail assets?  Do you think they should be sold?  They are a natural monopoly, and I don't think it makes sense to have private ownership of such things.

What do you mean by "below rail assets"?  To you mean the ground underneath the track?  If so its no different to governments issuing leases to mining companies.  I'd be happy for private ownership of stations but they would need a different financial model than exists for Green Square, Mascot, Domestic Airport and International Airport in Sydney, or Airtrain stations in Brisbane.  Slugging passengers 2, 3 , 4 times more to use the station than the fare itself is not good policy.

However, SOMEONE has to pay somewhere - as Paul Keating so elegantly put it, there is no such thing a a free lunch!  The question is do you slug the users themselves (ie user pays with a risk that users will avoid the station and go to an adjacent stations in the same way they avoid toll roads), or do you slug everyone through the taxation (or fare structure) system so you can subsidise the users?  It's not simple.

[somebody]

What do you mean by "below rail assets"? 

It's a misnomer, it really includes the rails.  What is meant by "below rail assets" is "not above rail assets" or "below wheel assets" if you like.  Hope that clears it up.

[ozbob]

Brisbanetimes --> QR National sale price to be revealed tomorrow

[Stillwater]

Queensland should not have sold the bath with the baby and the bathwater.  In other words, it should have retained ownership of the track, in the same way as it owns the roads, and sold off the rolling stock, then sat back and opened shop for companies who want to buy rights of way on the track, express slots (very expensive) and slower slots (less expensive), using the money to maintain and upgrade the track.  Alternatively, retained ownership and negotiated a 99-year lease (essentially the ARTC proposal, which was rejected).  The share price will reveal the answer, I suspect.

[justanotheruser]

Sorry FrereOp but as a taxpayer I disagree, the sale of assets is not justified as you assert.

This sale is not only justified, it is necessary for the long term benefit of QR National.  Compare this sale to QANTAS, Commonwealth Bank, Telstra and a host of other government businesses which have enabled those companies to go from strength to strength.  Something they would never have been able to do as a GOC.

This government was elected to provide the services and infrastructure that we as taxpayers pay taxes for government to provide.

With the passing of the GFC there is no longer justification for this government to sell off OUR assets, the government did not seek a mandate to do so prior to the last election and in the face of the opposition of some 80% of the states voters must be political suicide, if this incompetent and duplicit government has any integrity they would have before taking this path of total rejection of Labor principals and selling off revenue producing assets either held a referendum to gain a mandate from the actual owners of the assets to sell them.

They are not our assets. They never have been and the only way they ever will be is if they are sold to the public and companies via a share offer. At the moment it is owned by the government and simply being a taxpayer does not give you ownership. To say you own QR would be the same as saying because you are a taxpayer you can walk into a hospital and start ordering the doctors and other staff around. After all if you are the owner then you are the boss. It is clear that by law the government has every right to sell assests or acquire assets as they see fit.

Governments are elected to do a job. They do not have to detail every decision. I mean where in the election did they tell us how much they were going to spend on stationery and how much they would spend on fuel. They didn't because they don't have to.  You as a citizen have a right to express your opinions to your local member and to ministers and the premier. They are not obliged to follow your view. Sorry but that is the system. You elect a person to make decisions.

This did not happen simply for the same reason that they did not declare their intentions prior to the election, the voters of this state would not approve and they would not have been elected.

Decisions may be unpopular. Why did the howard government keep getting reelected after repeatedly upsetting people? Simple they just offered the biggest tax cut and everyone decided to forget that they had been lied to and forget that they didn't want GST etc. So the reality is that because people are greedy and only think about what is good for them we had a very unpopular government re-elected several times. that is where your thinking gets you. So why do we not have a LNP government? i've heard people complaining about the labor government ever since I moved here and Peter B was premier. It is amazing how many people complain and then vote for them.

Part of the asset sales money, presumably, will go into the CRR project.  Does anyone know the status of the business case for CRR? 

No chance, the Queensland Blight has stated a number of times that any return from the asset sales will be used to retire debt, but then we must remember that Dictator Bligh and her incompetent government has already expended the money to attempt to buy votes so when this infrastructure is sold off and the revenue stream ceases the credit rating then drops again with nothing left either to produce revenue or available to sell off.
In the interim period transport and other costs will rise and jobs will go as the purchasers of these assets sold recover their investment and maximise the return on their investment while the run the infrastructure down.
New Zealand, Tasmania, South Australian and New South Rail systems being glaring examples of this, with government then being forced either to buy back the infrastructure or subsidise the private entity that was created at greater cost to the taxpayer than would have been the case if the assets had remained in public ownership with higher levels of employment the costs of which is in turn offset by the taxes paid and the money those employed spend within the community effectively providing more employment.

So you mean certain freight lines in NSW then not actually NSW rail as a whole. A few lines compared to the size of their network is hardly compelling evidence. So if there is further evidence that I am not aware of then please educate me.

[ozbob]

From the Courier Mail click here!

Brokers say QR National float will be no sure bet

Brokers say QR National float will be no sure bet

    * by James McCullough
    * From: The Courier-Mail
    * November 20, 2010 12:01AM

MUM-and-dad investors will pay $2.45 a share to own a slice of QR National when it hits the stockmarket on Monday.

The largest float since Telstra was believed to have attracted lacklustre support from institutional investors, who were prepared to pay only $2.55 a share.

That was more than some commentators had predicted, but was still at the bottom end of the Bligh Government's $2.50 to $3 indicative price range.

"It reflects that the market is more cautious than it might have been," said Sandy Grant from Wilson HTM, one of the float's promoters.

"It's a very good asset in the long run for people who are careful enough to take a five-year view."

The offer from institutional investors prices the QR National freight and coal haulage business, the largest in the Government's $15 billion asset privatisation program, at $6.2 billion.

At $2.55 a share (excluding the 10c a share retail discount), the Government will get less than $3.7 billion because there has only been demand for about 60 per cent of QRN.

The final figure will depend on the number of shares retail investors buy, although that is rumoured to be lower than the Government wanted.

At their most optimistic, Premier Anna Bligh and Treasurer Andrew Frasher would have hoped to pull in at least $5 billion, if demand had been stronger and they had offloaded 75 per cent of QRN at $3 a pop.

Its return excludes the $15 million spent on a national ad campaign including blanket TV, billboards, online and newspaper coverage.

Many analysts not associated with the float regarded QRN shares as expensive and risky.

They criticised the huge capital costs required to maintain the railway in the years ahead, the high price-to-earnings ratio, low dividend forecast and what some say is overly optimistic growth projections contained in the QRN prospectus.

Brokers at Hunter Green, for instance, recently valued QRN at just $1.93 a share.

State Treasurer Andrew Fraser is expected to hold a press conference today to confirm the final price and share allocations for institutional and retail investors. He has maintained throughout the privatisation countdown that QRN will be a success for investors and the Government.

Steve Wilson of Wilson HTM and Tim Crommelin of RBS Morgans, another co-lead manager, agreed.

Both thought QRN would debut on the stock market at a 10 per cent premium to the issue price.

"The good thing is that, whatever the price, from an investor's point of view no one is going into this float with their eyes shut," Mr Wilson said.

"We have seen a huge public debate on both sides played out in the media, so no one can say they are not aware of any irregularities with the company or the float."

Mr Wilson and It is also understood that the government will retain around 40 per cent of the stock in QRN which it has vowed to offload by December 2012.

The government has said it would retain between 25 and 40 per cent after the company lists but suggestions of a $2.55 price for institutions suggest it will retain a larger stake.

[mufreight]

Sorry FrereOp but as a taxpayer I disagree, the sale of assets is not justified as you assert.

This sale is not only justified, it is necessary for the long term benefit of QR National.  Compare this sale to QANTAS, Commonwealth Bank, Telstra and a host of other government businesses which have enabled those companies to go from strength to strength.  Something they would never have been able to do as a GOC.

This government was elected to provide the services and infrastructure that we as taxpayers pay taxes for government to provide.

With the passing of the GFC there is no longer justification for this government to sell off OUR assets, the government did not seek a mandate to do so prior to the last election and in the face of the opposition of some 80% of the states voters must be political suicide, if this incompetent and duplicit government has any integrity they would have before taking this path of total rejection of Labor principals and selling off revenue producing assets either held a referendum to gain a mandate from the actual owners of the assets to sell them.

They are not our assets. They never have been and the only way they ever will be is if they are sold to the public and companies via a share offer. At the moment it is owned by the government and simply being a taxpayer does not give you ownership. To say you own QR would be the same as saying because you are a taxpayer you can walk into a hospital and start ordering the doctors and other staff around. After all if you are the owner then you are the boss. It is clear that by law the government has every right to sell assests or acquire assets as they see fit.

Governments are elected to do a job. They do not have to detail every decision. I mean where in the election did they tell us how much they were going to spend on stationery and how much they would spend on fuel. They didn't because they don't have to.  You as a citizen have a right to express your opinions to your local member and to ministers and the premier. They are not obliged to follow your view. Sorry but that is the system. You elect a person to make decisions.

This did not happen simply for the same reason that they did not declare their intentions prior to the election, the voters of this state would not approve and they would not have been elected.

Decisions may be unpopular. Why did the howard government keep getting reelected after repeatedly upsetting people? Simple they just offered the biggest tax cut and everyone decided to forget that they had been lied to and forget that they didn't want GST etc. So the reality is that because people are greedy and only think about what is good for them we had a very unpopular government re-elected several times. that is where your thinking gets you. So why do we not have a LNP government? i've heard people complaining about the labor government ever since I moved here and Peter B was premier. It is amazing how many people complain and then vote for them.

Part of the asset sales money, presumably, will go into the CRR project.  Does anyone know the status of the business case for CRR? 

No chance, the Queensland Blight has stated a number of times that any return from the asset sales will be used to retire debt, but then we must remember that Dictator Bligh and her incompetent government has already expended the money to attempt to buy votes so when this infrastructure is sold off and the revenue stream ceases the credit rating then drops again with nothing left either to produce revenue or available to sell off.
In the interim period transport and other costs will rise and jobs will go as the purchasers of these assets sold recover their investment and maximise the return on their investment while the run the infrastructure down.
New Zealand, Tasmania, South Australian and New South Rail systems being glaring examples of this, with government then being forced either to buy back the infrastructure or subsidise the private entity that was created at greater cost to the taxpayer than would have been the case if the assets had remained in public ownership with higher levels of employment the costs of which is in turn offset by the taxes paid and the money those employed spend within the community effectively providing more employment.

So you mean certain freight lines in NSW then not actually NSW rail as a whole. A few lines compared to the size of their network is hardly compelling evidence. So if there is further evidence that I am not aware of then please educate me.

Over 1/3 of the mileage of NSW rural lines have been closed as a consequence of being run down and not maintained so that they were no longer fit for service and became unable to compete with road thus forcing freight that could have and would have been moved on rail on to road.
The increased costs of road haulage have made the production of crops and other products uncompetitive so they are no longer produced costing employment, reducing the rural spending and the government has lost tax revenue while at the same time having to spend more to attempt to maintain roads in a fit condition to carry this increased level of freight, costs which local governments are increasingly unable to fund due to the loss of revenue from producers and the government is less able to fund due to the loss of taxes from lost employment.
The point has now been reached where in some areas Shire councils are returning roads to gravel grading off the bitumen surface they can no longer afford to maintain so the roads are safe despite this meaning these roads are now unusable after rain and can not sustain either the traffic levels or axle loads they previously carried.
The higher transport costs as a result impact not only on those in these rural areas but on all in this country.
Governments at all levels were elected to provide the services and infrastructure required not to bail out the moment there are a few problems and my family over now four generations having contributed to the cost and construction of these assets like those of every other family in this country OWN those assets, the government, any government is only the custodian.

[ozbob]

Brisbanetimes --> QRN float hauls in $4.6b for Bligh government

[somebody]

the government, any government is only the custodian.

I agree with the point, but one of the only successful freight rail policy in Australia has been the NR sale and formation of ARTC.  This arrested the decline across the Nullabour, and reversed it.  Of course, subsidies have worked too.  The decline in the country NSW & QLD lines have occurred under govt ownership AFAIK.

[ozbob]

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
20/11/2010

QRN Share Offer raises more than $4 billion in proceeds for Queensland

QR National worth $6.7 billion

Will be the second biggest float in Australian history

QRN Share Offer raises more than $4 billion in proceeds for Queensland

    * $4.6 billion in proceeds to Queensland
    * $4.05 billion of shares allocated
    * Listing price $2.55 per share
    * Share Offer allocated - 34% retail : 66% institutional
    * Government retains up to 40% of the company
    * Trading on ASX starts on Monday at 12 noon (Sydney time)

QR National is expected to list as one of Australia's biggest companies on the ASX by market capitalisation following the successful completion of the bookbuild for the Share Offer.

Premier Anna Bligh and Treasurer Andrew Fraser said QR National will be priced at $2.55 per share on Monday's ASX listing, with Queensland taxpayers set to reap $4.6 billion in proceeds.

Ms Bligh said the State Government would retain up to 40% of stock at listing on behalf of taxpayers worth $2.1 billion.

"Now is the right time for QR National to be backed by private investment, and this successful transaction shows that there is local and international faith in this great company's future," she said.

"This Government has the right economic plan to build a stronger Queensland budget. As promised, these proceeds will now be used to pay off debt and establish a stronger balance sheet, allowing us to protect jobs and deliver on the schools, roads and hospitals Queenslanders need - not a commercial coal haulage business that services mining companies."

Mr Fraser said the time is right for QR National to forge ahead in the private sector.

"This is a significant moment for the Queensland economy and for QR National," Mr Fraser said.

"QR National's growth will now be funded by the private sector, investing in infrastructure that will deliver greater efficiencies for our export supply chain."

Mr Fraser said a considerable level of retail interest was backed up by strong institutional demand.

"This Share Offer was always going to be of great interest to those with a long-term view and a well-established knowledge of railway companies.

"With the 10 cent discount, retail investor will receive shares the price of $2.45.

"The retail component of QR National upon listing will be around 34% of the total Share Offer, comprising approximately 80,000 retail shareholders.

"Queenslanders will play a big role in the company's future, accounting for around 37% of that Retail Offer.

"Over 9,000 QR National employees have taken up the opportunity to be part of the Share Offer, accepting $1,000 worth of shares each allocated for no monetary payment under the Employee Gift Offer.

"That means QR National's workforce now have a direct stake in the company's future growth."

As outlined in the Share Offer Document, retail investors have received a 10c discount to the final institutional price and will be eligible for loyalty bonuses.

Mr Fraser said QR National would list on the ASX on Monday at 11am (12 noon Sydney time).

"Listing on the ASX is a major milestone in transforming QR National from a strong Queensland company into a truly national one.

"I have every confidence that investors will share in the success of QR National's long-term growth prospects, as will Queensland taxpayers who will retain a stake of up to 40% in the business, which we plan to sell down as appropriate post the release of QR National's FY2012 results announcement."

The details of pricing and the basis of allocation in the Retail Offer and Institutional Offer will be published in advertisements in major national and metropolitan newspapers on Monday - an extract of which is attached to this release.

Applicants who are retail investors can obtain details of their allocation of shares before receiving their holding statements online at qrnshareoffer.com.au (if they have an Application Reference Number) from 4.00pm Sunday 21 November. Or they can call 1800 776 476 (within Australia) or +613 9938 4376 (outside Australia) between 7.00 am and 11.00 pm (Brisbane time) Monday to Friday. On Sunday, 21 November only the infoline will be open from 4.00pm until 11.00pm.

Holding statements to successful applicants and refunds to applicants who have applied and paid for shares in excess of their allocation are expected to be dispatched by Monday, 6 December 2010.

- Ends-


About QR National

QR National is Australia's largest rail freight company with services operating across five states. In 2009-10, QR National transported more than 260 million tonnes of freight, including coal, iron ore, other minerals, agricultural products and general freight. It also operates and manages the 2,300 kilometre central Queensland coal network that links mines to coal ports at Bowen, Mackay and Gladstone.

QR National is expected to be one of the 50 largest companies on the Australian Securities Exchange (ASX).

Important information

This notice does not constitute an offer to sell, or the solicitation of an offer to buy, any shares in QR National in the United States. Shares in QR National will not be and have not been registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Further information

For further information about the Share Offer visit qrnshareoffer.com.au or about QR National visit qrnational.com.au. If you have questions about your allocation of shares in the Share Offer call 1800 776 476 (within Australia) or +613 9938 4376 (outside Australia).

Retail Offer allocation policy

General Public Offer

The following table sets out the allocation policy for the General Public Offer:

Queensland resident retail investors:
   

»have been allocated 100% of shares2 for which they applied

Non-Queensland resident retail investors who:
   

. have been allocated

»pre-registered for a Share Offer Document and applied for shares
   

»100% of shares for which they applied up to $25,000 of shares plus 85% of any dollar value of shares applied for above $25,000 of shares

»did not pre-register for a Share Offer Document and applied for shares
   

»100% of shares for which they applied up to $25,000 of shares plus 75% of any dollar value of shares applied for above $25,000 of shares2

Broker Firm Offer

Valid applications under the Broker Firm Offer were accepted in full, subject to the size of each broker's overall firm allocation. Applicants allocated shares under the Broker Firm Offer should confirm their allocation with their broker or financial planner.

Employee Gift Offer

Valid applications under the Employee Gift Offer were accepted in full. Each Eligible Employee (as defined in the Share Offer Document) who made a valid application to accept $1,000 worth of shares for no monetary payment under the Employee Gift Offer was allocated 408 shares, being the nearest number of whole shares (rounded down) to the maximum value of $1,000.

Institutional Offer

Approximately 66% of the shares allocated under the Share Offer were allocated to institutional investors under the Institutional Offer. Successful applicants under the Institutional Offer will be advised about their allocations by the Joint Lead Managers.

All applicants are responsible for determining and confirming the number of shares allocated to them before selling any shares. Applicants who sell shares before receiving their holding statement confirming their allocation do so at their own risk.

Key Share Offer statistics and dates - see Page 4
Key Share Offer statistics and dates

Key Share Offer statistics

Enterprise value of QR National
   

$6.7 billion

Gross proceeds to the State
   

$4.63 billion

Total number of shares on issue
   

2,440.0 million

Total number of shares allocated in the Share Offer
   

1,610.4 million

Market capitalisation at listing (total number of shares on issue at the institutional price of $2.55 per share)
   

$6.22 billion

Gross proceeds of the Share Offer
   

$4.05 billion

Total value of the State's retained shareholding of 34%1 at the institutional price of $2.55 per share
   

$2.1 billion

Total value of shares allocated under the Institutional Offer
   

$2.7 billion (66%)

Total value of shares allocated under the Retail Offer
   

$1.3 billion (34%)

Institutional price per share
   

$2.55

Retail discount per share
   

$0.10

Retail price per share
   

$2.45

Loyalty bonus share entitlement for shares allocated under the Retail Offer (excluding the Employee Gift Offer) if held until 7 December 2011
   

Queensland resident retail investors
   

1 loyalty bonus share for every 15 shares
(up to 675 loyalty bonus shares)

Non-Queensland resident retail investors
   

1 loyalty bonus share for every 20 shares
(up to 500 loyalty bonus shares)

Key dates
   

Listing, trading on conditional and deferred basis commences on ASX
   

12 noon (Sydney time) 22 November 2010

Institutional Offer settlement
   

30 November 2010

Trading on deferred settlement basis commences on ASX
   

1 December 2010

First settlement date of all ASX trades
   

10 December 2010

End of stabilisation period
   

21 December 2010

Expected first dividend payment date
   

September 2011

Record date to receive loyalty bonus shares
   

7 December 2011

[1]Before any shares bought back under the Over-allocation Option

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

[ozbob]

From the Courier Mail click here!

Anna Bligh happy with $2.55 QR National share flotation price

Anna Bligh happy with $2.55 QR National share flotation price

    * From: AAP
    * November 20, 2010 3:36PM

THE Queensland government has hailed the QR National float a success - despite the $2.55 share price being at the lower end of its forecast range.

The railway operator will float at $2.55 a share on Monday, generating $4.6 billion for the Queensland government. The state government's forecast range was between $2.50 and $3.00 a share.

Mum and dad investors will pay $2.45 for a slice in the company because of a 10-cent discount, and they will be eligible for loyalty bonuses. The state government will retain a 40 per cent stake in the company worth $2.1 billion.

On Saturday Premier Anna Bligh described the float - the largest share market listing since Telstra was privatised in three stages from  1997 - as a historic day for Queensland and her government's economic reform agenda.

''This transaction will return billions of dollars in proceeds to the budget to pay down debt ... allowing us to deliver on the schools, roads and hospitals Queenslanders need,'' she said.

''It secures a top 50 Australian company . . . headquartered in Brisbane.''

QR National is expected to list on the Australian Securities Exchange on Monday at 1200 AEDT, with an allocation of $4.05 billion in shares.

The company will be valued at $6.7 billion and will be more than  70 per cent owned by Australians, including the state government's stake.

The share offer allocated 34 per cent of shares to 80,000 retail investors and 66 per cent for institutional investors.
Treasurer Andrew Fraser denied the government was disappointed the price was at the lower end of its forecast range and hit back at financial analysts who said the float's timing was bad.

''I don't think there's ever a time that's certain in the world economy,'' he said. ''There will be some who rush to declare judgment.

''The judgment that needs to be passed on QR National is not on Monday night but well into the future for what we believe will be a company that will grow from strength to strength.

''There's been a relentless campaign here by many people who have got vested interests to talk this price down.''

He said the state government would keep its stake for two years.

''We've obviously retained 40 per cent because we believe that will grow in value into the future,'' he said.

''I'm entirely confident that when we sell it post the results in  2012 it will be sold with a profit to Queensland taxpayers.''

The Queensland Coal Industry Rail Group (QCIRG) put together an estimated $5 billion bid to counter the float but pulled the plug in September.

Mr Fraser said the state was in a better position because of the float and he had no regrets.

He said he would issue a mid-year update on his budget forecast in January in light of the float and Port of Brisbane sell off.

Opposition shadow treasurer spokesman Tim Nicholls said the QR float was on track to flop come Monday.

''Despite Labor blowing tens of millions of dollars of taxpayers' money on their advertising campaign, Queensland investors have stayed away in droves,'' Mr Nicholls said.

''Queenslanders have been sold down the river by a premier and a treasurer desperate to sell at any price just to get their hands on some cash to meet spiralling debt payments made all the more difficult by their loss of our prized triple-A credit rating.''

[ozbob]

Brisbanetimes --> $2.55. The cost of a QR ticket

[ozbob]

Brisbanetimes --> QR National shares shake off limp start

[justanotheruser]

Brisbanetimes --> QR National shares shake off limp start

this is actually not a great start as there would be super companies obliged to try and buy once the shares hit the market and also people selling looking for the quick profit. Most share releases will jump higher than this in first day or two of trading before dropping a little and settling in to normal market conditions.

[ozbob]

From the Brisbanetimes click here!

Queensland Motorways to remain in public hands after all

Queensland Motorways to remain in public hands after all
Daniel Hurst
November 25, 2010 - 10:03AM

One of the final assets included in the Bligh Government's privatisation program, Queensland Motorways, will remain in public ownership.

Premier Anna Bligh this morning announced the tollroad business would be transferred to the state's investment arm, Queensland Investment Corporation.

"This will keep the state's tollroads in public hands while strengthening our state's finances," Ms Bligh told State Parliament. "This is a win-win outcome."

Ms Bligh said tolls on the Gateway and Logan motorways would not be allowed to increase beyond inflation, under legislation recently enacted.

Treasurer Andrew Fraser said the move would strengthen the state's balance sheet, improving the prospect of regaining the prized triple-A credit rating that Queensland lost early last year.

Mr Fraser said the transaction should be completed in the first half of next year.

Ms Bligh said the QIC decision would safeguard the government's fully funded superannuation scheme for the state's public servants.

QIC Limited is a company government owned corporation and reports to its shareholding ministers, the Premier and the Treasurer.

It is not yet clear what impact the deal will have on the state government's balance sheet.

Opposition treasury spokesman Tim Nicholls today asked about the price of the transaction, saying Queensland Motorways Limited had $2.9 billion in debt.

Ms Bligh said commercial negotiations would be undertaken with oversight from a probity auditor, but the deal would be in line with market value.

She said an arm's length assessment had valued QML at about $3 billion. The outcome of the negotiations would be announced once completed, she said.

The Premier has also announced an overhaul in the power industry.

She said the three government-owned energy generators – CS Energy, Tarong Power and Stanwell – would be rolled into two government-owned generating companies.

It's been a busy month in the state's unpopular asset sales program, which drew the ire of unions and the state opposition. The state's coal haulage business, QR National, was floated on the sharemarket on Monday.

Two weeks ago, a consortium won a 99-year lease over the Port of Brisbane in a $2.3 billion deal.

Earlier this year, the state government sold Forestry Plantations Queensland for $603 million.

The last remaining asset sale in the controversial privatisation program is the Abbot Point coal terminal.

[ozbob]

Joint Statement:

Premier and Minister for the Arts
The Honourable Anna Bligh

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
25/11/2010

Toll roads stay in public hands as Qld moves further along the path to AAA

Premier Anna Bligh today announced that the Government-owned Queensland Motorways Limited would stay in public hands.

The Premier said QML - the owner of Gateway and Logan motorways - would be transferred at market value to the state-investment arm, QIC.

"This is a win-win situation for Queensland taxpayers," Ms Bligh said today.

"It means the motorways will still stay in public hands while at the same time working towards our goal of regaining the AAA credit rating as soon as we can.

"This will strengthen the state's finances. And for 80,000 Queensland workers - public sector employees, such as teachers, nurses and police - it ensures that Queensland will continue to have a fully-funded superannuation scheme."

QML will stay in public hands, but be transferred to QIC's defined benefit superannuation scheme.

With legislation already in place to protect against above-inflation toll increases, the Government is also ensuring that Queensland motorists are protected.

The State Government will enter into exclusive negotiations on a commercial basis with QIC to settle on the price, terms and conditions for the QML transfer, with the process expected to be concluded by 30 June 2011.

Treasurer Andrew Fraser said he was confident that ratings agencies will see the move as a decision that strengthened Queensland's overall financial position.

It would continue to drive Queensland's towards a AAA credit rating and enhance the investment portfolio which ensures the State's superannuation liabilities will remain fully funded, Mr Fraser said.

QML would sit comfortably as an asset in the Defined Benefit fund, which safeguards the superannuation of Queensland workers, including teachers, nurses and police.

"Our fully-funded superannuation scheme is a legacy that we want to protect and this decision will ensure that our scheme continues to be fully funded into the future despite the turmoil in investment markets of the last two years," Mr Fraser said.

"When the Government announced its intention to divest five commercial businesses in response to the devastating effects of the GFC, we said our goal was to put us back on the path towards a AAA credit rating, while protecting jobs and maintaining our building program," Mr Fraser said.

"By making this transfer, we continue to deliver on our economic reforms as promised.

"When credit ratings agencies assess Queensland's finances, arguably our strongest attribute is our fully-funded superannuation scheme.

"QIC is a natural owner of this type of asset - it is already a part-owner of a tollway in Sydney (the M7), and owns a share in the Brisbane Airport Corporation, which has grown from strength to strength since it was privatised 12 years ago."

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

[mufreight]

Bligh and the Toy Boy Treasurer facing the reality that they will not get what they had hoped for from the asset sales, pity that they had not accepted the reality before they put the most profitable asset, the railways, up for a fire sale.
They could of course put a halt to any further sale of QR now but the loss of face they perceive would be greater for them than the loss off the revenue from the asset will be for Queensland and since their arrogant incompetence has ensured that they will not be the government following the next election it is doubtful that they realy care, they will have their overinflated parliamentary pensions and a few directorships in the companies that they have disposed of our assets to.

[justanotheruser]

Bligh and the Toy Boy Treasurer facing the reality that they will not get what they had hoped for from the asset sales, pity that they had not accepted the reality before they put the most profitable asset, the railways, up for a fire sale.
They could of course put a halt to any further sale of QR now but the loss of face they perceive would be greater for them than the loss off the revenue from the asset will be for Queensland and since their arrogant incompetence has ensured that they will not be the government following the next election it is doubtful that they realy care, they will have their overinflated parliamentary pensions and a few directorships in the companies that they have disposed of our assets to.

thats a rather serious allegation you've made there. Accusing them of corruption. Do you have any proof of this claim or are you just venting?

[mufreight]

At this time the only thing the government has been accuses of is gross financial incompetence, time and the future actions of those involved will determine if there is or has been an element of corruption in this matter.  
If at some future time it is proven there was corruption then that is a serious matter, but if something looks like a toad, croaks like a toad and acts like a toad then there is a high possibility that it is a toad, would you not agree?

[ozbob]

Courier Mail --> Investors smiling as QR National returns steam ahead

[justanotheruser]

At this time the only thing the government has been accuses of is gross financial incompetence, time and the future actions of those involved will determine if there is or has been an element of corruption in this matter.  
If at some future time it is proven there was corruption then that is a serious matter, but if something looks like a toad, croaks like a toad and acts like a toad then there is a high possibility that it is a toad, would you not agree?

Actually you said

they will have their overinflated parliamentary pensions and a few directorships in the companies that they have disposed of our assets to.

by saying they will is making the allegation. Saying probably avoids the allegation

[frereOP]

this is actually not a great start as there would be super companies obliged to try and buy once the shares hit the market and also people selling looking for the quick profit. Most share releases will jump higher than this in first day or two of trading before dropping a little and settling in to normal market conditions.

Well, compared to AMP they are not doing too badly.  They were listed at about $18 and shot up to over $40 within 30 mins before dropping back over the next couple of hours to about $4 where they have been for years!  They are currently at $5.11 and QR National is at $2.80.

[Jonno]

Here is a thought and it is a likley situation.  There is the potential that with the shackles of being a Government Owned Corporation (GOC) and the organisation able to focus 100% on being a freight and coal haulage company, that QR National could return profits to the Government (as a 40% shareholder) at simialr levels to those prior to sale.  In addition Queensland Rail is able to focus 100% on being a passenger carrier and this drive service and cost efficiencies that mean the Government is receiving the same benefits as before except that they have banked $4.6 billion.

[justanotheruser]

Here is a thought and it is a likley situation.  There is the potential that with the shackles of being a Government Owned Corporation (GOC) and the organisation able to focus 100% on being a freight and coal haulage company, that QR National could return profits to the Government (as a 40% shareholder) at simialr levels to those prior to sale.  In addition Queensland Rail is able to focus 100% on being a passenger carrier and this drive service and cost efficiencies that mean the Government is receiving the same benefits as before except that they have banked $4.6 billion.

while I can see what your saying my observation has been when a company is part GOC (40% shareholder makes them largest shareholder and still in control) it still operates as such. The way to prevent this is to sell of remaining shares as is the plan. 

[Jonno]

QR Natuonal has been completely de-GOC'd.  It will operate as a fully commercial business.

[somebody]

I think justanotheruser is about right.  Look at how Telstra was run when it was largely owned by the Govt.

[Jonno]

And look at now

[frereOP]

while I can see what your saying my observation has been when a company is part GOC (40% shareholder makes them largest shareholder and still in control) it still operates as such. The way to prevent this is to sell of remaining shares as is the plan. 

Except that as a listed company they come under the auspices of ASIC.  Not a pre-requisite I know but it means directors have to act in the best interest of shareholders, and not be subservient to an incompetent spin-driven bureaucracy that stifles competition in the market place to protect it's own image.  No longer will we see inappropriate political interference like we saw when Anna Bligh canned the QR National Riverfire Corporate dinner because it wasn't politically attractive.

[justanotheruser]

while I can see what your saying my observation has been when a company is part GOC (40% shareholder makes them largest shareholder and still in control) it still operates as such. The way to prevent this is to sell of remaining shares as is the plan. 

Except that as a listed company they come under the auspices of ASIC.  Not a pre-requisite I know but it means directors have to act in the best interest of shareholders, and not be subservient to an incompetent spin-driven bureaucracy that stifles competition in the market place to protect it's own image.  No longer will we see inappropriate political interference like we saw when Anna Bligh canned the QR National Riverfire Corporate dinner because it wasn't politically attractive.

There will be a reduction of political interference however government style of running things which is often inefficient still stays often. I have seen this once myself and my wife has seen it many times in her years of working with the government on various projects. Oh the money the government could have saved if they just listened to the expert. Of course the fact that my wife ended up getting an extra two years work because they ignored her was fine by us.

[justanotheruser]

QR Natuonal has been completely de-GOC'd.  It will operate as a fully commercial business.

this may be true but the single largest shareholder is the Queensland Government with a stake of around 40%.  I can assure you that being the single largest shareholder basically means you run things especially with that size shareholding. Many shareholders do not vote on issues at AGM's but rather just go with the boards reccomendations. With the size stake the govt has they can remove any director they want to.

I think justanotheruser is about right.  Look at how Telstra was run when it was largely owned by the Govt.

And look at now

yes look at it now that it has been fully sold off.  It was still run poorly untill the federal govt sold the remaining shares