Qld Budget 2009 Asset Sales - articles and discussion

[ozbob]

From the Brisbanetimes click here!

Labor losing ground with voters

Labor losing ground with voters
Angela Harper
July 20, 2009 - 7:50AM

Results from a union campaign against the Queensland government sale of public assets reveal voter backlash in safe Labor seats.

The Electrical Trades Union (ETU) is sinking $1 million into a campaign after the government's decision to sell off $15 billion of public assets to chip away at debt.

The ETU will formally discuss poll results from its Light on the Hill campaign in Ipswich on Monday morning as it unveils its first of five billboards in the seats of the Labor politicians who voted for the sale.

ETU state secretary Peter Simpson said the government had timed the sell off in the hope voters would forget about the decision before the next election.

"It's the same as the council amalgamations and people will forget about it before the next elections, so we're going to make sure they don't," Mr Simpson told AAP.

"People are genuinely outraged ... because they weren't consulted, they weren't told about it before the election and they (the government) are selling their asset, so they're pretty dirty about it."

The government passed laws in June that would allow the sale of assets including the Port of Brisbane, Queensland Motorways and Queensland Rail.

"The laws have been passed, but they haven't been enacted and our goal in the next two and a half years is to make sure they're not enacted.

The union will sink $1 million into the campaign over the next two years, he said.

The results include statistics that 37 per cent of Labor voters would switch their vote because of the privatisation, while 60 per cent of "soft voters" indicated they would be more likely to switch their vote as a result.

The first billboard, in the Ipswich electorate, is on the corner of Park St and Warwick Road Ipswich and targets Transport Minister Rachel Nolan.

The billboard reads: "Rachel Nolan voted to sell off Queensland's profitable public assets. Rachel Nolan sold us out!Ipswich working families will remember next election, Rachel."

While bumper stickers read: "See Queensland first before Bligh sells it".

Mr Simpson said the Queensland Council of Unions would also launch a campaign.

AAP

[ozbob]

From the Quest News click here!

Angry retort on rail sell-off

Angry retort on rail sell-off
22 Jul 09  by Brent O'Neill

CLAIMS from Premier Anna Bligh suggesting the sale of Queensland Rail was stated publicly prior to March?s state election have been met with fierce opposition from Redbank railway workshop employees.

Speaking in Parliament last week, Ms Bligh said she had warned of the sale of public assets, which was confirmed in June, before voters went to the polls.

?We made it very clear that these were the sort of things that might have to be contemplated,? she said.

However, Electrical Trades Union delegate for Redbank Clive Cooke said the 800 Redbank workers in danger of losing their jobs had a different recollection.

?We weren?t given any prior knowledge. We were aware that the Opposition was talking about selling off government assets but there was certainly no mention from the (current) government,? he said.

?(State member for Ipswich) Rachel Nolan has made some statements that privatisation will create more jobs, which in our opinion is a joke.?

A mountain of public opposition to the sale has resulted in a significant voter swing away from Labor in the seat of Ipswich.

Ms Nolan said she was ?troubled? by the public concern, but insisted the sale was ?the right thing to do?.

?There have been many businesses that have really prospered once privatised so I don?t think it?s right to assume there will necessarily be job losses,? she said. ?I acknowledge it?s a big step for the people of Ipswich. There are very few alternatives for the Government.? The sale of Queensland Rail?s freight and coal businesses is aimed at reducing the Government?s $14 billion revenue hole.

[ozbob]

From the Brisbanetimes click here!

Red-faced union turns the tables on Premier

Red-faced union turns the tables on Premier
Scott Casey
July 27, 2009

Queensland Rail has been dragged into a stoush between the State Government and angry unionists over the government's $15 billion asset sell-off, with its logo featured on an advertisement accusing the Premier of deception.

Less than one kilometre from Anna Bligh's electorate office in West End, the Electrical Trades Union has erected a giant billboard attacking the Premier for her role in the proposed privatisation of state infrastructure including QR's coal freight business, the Port of Brisbane, Queensland Motorways and Forestry Plantations Queensland.

The three-metre billboard, at the corner of Gladstone Road at Highgate Hill, features a QR logo used without the government-owned rail body's permission.

ETU Secretary Peter Simpson said Ms Bligh had embarrassed the union, which backed Labor at the last state election believing the assets would be kept in public hands.

"Before the last state election we were told Labor was the anti-privatisation party and we should be getting our members to support them on that basis," he said.

"They've made us look stupid by turning around and doing the exact opposite after the election."

The asset sell off, coupled with other measures such as scrapping the eight-cents-a-litre fuel subsidy, would go towards reducing the state's $14 billion budget deficit.

The first of the billboards was erected in Transport Minister Rachel Nolan's electorate of Ipswich two weeks ago with the next to be unveiled in Rockhampton later this week.

The billboard reads `Anna Bligh sold us out!' and bears an image of four workers in front of a Queensland Rail depot.

A spokesman today said Queensland Rail was unaware of the use of its logo on the billboards.

Mr Simpson confirmed QR was not involved in the campaign and had not contacted the union over the use of the symbol.

"It was taken outside on the footpath outside a Queensland Rail depot but they certainly aren't backing our campaign," he said.

The union has also been critical of the government's use of Merrill Lynch and the Royal Bank of Scotland as advisers in the sale as both organisations received large amounts of government funds to prop up their businesses during the end of last year and beginning of this year.

"I mean, what a team. A couple of companies that had to be bailed out recently by governments are now back advising Queensland on privatisation." Mr Simpson said.

"The people of Queensland are entitled to a detailed outline of their recent performance and their role in the global financial crisis."

[ozbob]

From the Brisbanetimes click here!

Rail depot closures will be tip of the iceberg: union

Rail depot closures will be tip of the iceberg: union
Tony Moore
July 29, 2009 - 7:07PM

Rail depots between Townsville and Mt Isa will closed within weeks, with the Rail, Tram and Bus Union (RTBU) tipping they will be first wave of major job cuts before QR sells its rail freight division.

RTBU president Bruce Mackie said he had no doubts the closures were linked to the privatisation programs set up by the Queensland Government before the State Budget.

That plan includes privatising QR's coal division, however it also includes a review of QR's general freight.

Mr Mackie said the 13 jobs to go at Charters Towers, Hughenden, Richmond, Julia Creek and Cloncurry would be the start of job losses throughout regional Queensland.

The rail depots provide passengers, materials, general freight and livestock services along the rail line called the "North West Corridor".

The job cuts mean those goods and passengers would now be carried by road, Mr Mackie said.

Queensland Rail did not respond to questions emailed yesterday afternoon.

Mr Mackie said he believed there would be more jobs to go in the near future.

"This is a two-pronged campaign and it is actually in Labor's Budget papers," Mr Mackie said.

"What it said was the sale of these assets - and that is the coal and the forestry and Queensland Motorways - but is also went on to say a strategic review of QR's freight services.

This is their strategic review - just shut the depots down."

Mr Mackie said the closures would take $500,000 out of the local economies and put further jobs at risk.

"This looks like the first volley in a move by this government to shut down regional freight west of the Great Divide and put hundreds of workers on the street in small towns," he said.

He said he believed the move was designed to reduce staff numbers rather than increase the efficiency of the freight network.

The RTBU announced this week it would participate in an expanded $400,000 union campaign against the Government's plan to sell-off public assets, including rail, road, ports and forests.

The Goss Government lost support in regional Queensland when it closed down more than 2800 kilometres of regional rail lines and shed 250 jobs to save $40 million.

"It is very sad when the two biggest fights to save lines in history are against Labor Governments," Mr Mackie said.

Confirmation will be sought from Queensland Rail.

[#Metro]

Does QR adhere to competitive neutrality principles, as set by the Productivity Commission?

[ozbob]

From the Courier Mail click here!

Anna Bligh says state will now keep QR regional network

Anna Bligh says state will now keep QR regional network
Article from: The Courier-Mail

By Steven Wardill

August 19, 2009 10:05am

PREMIER Anna Bligh has backed away from selling Queensland's regional rail network, announced as part of a major sell-off of state assets two months ago.

Miss Bligh told Parliament today the Federal Government had rejected an offer to buy this part of the business last month.

But she insisted the decision to keep the business was not  a backflip because she had always maintained it should remain in public hands.

Miss Bligh said because the Federal Government's Australian Rail Track Corporation could not afford the asset, Queensland would keep it.

"It was always the government's position it remain in public hands," she said.

QR''s coal buisness remains for sale while the passenger arm of the business will remain in state hands.

[ozbob]

 

[ozbob]

From the News.com Business click here!

State rail network to stay in government hands

State rail network to stay in government hands

AAP

August 19, 2009 10:35am

THE Queensland Government will retain ownership of the state's non-coal and non-suburban rail networks.
In June, the Government announced a significant asset sale program, and a preference to keep the below rail network of non-coal and non-suburban lines in public hands.

Premier Anna Bligh today told parliament she had discussed the sale with the Federal Government's Australian Rail Track Corporation (ARTC), but as it was involved in $1.2 billion of projects nationally, it was not in a position to buy the network.

"My government has taken the decision, given the view of the ARTC to retain ownership of the below rail network of non-coal and non-suburban lines," Ms Bligh said.

"Retention of the network in public ownership provides certainty for the future of the state's rail network as our network operates on a different gauge to the rest of the country."

Ms Bligh said the asset sales team, charged with disposing of infrastructure including Forestry Plantations Queensland, Queensland Motorways Limited and Port of Brisbane Corporation, was "well established".

[ozbob]

Premier and Minister for the Arts
The Honourable Anna Bligh
19/08/2009

Qld's non-coal below-rail network will remain in State hands: Bligh

An approach to the Federal Government to explore ownership of Queensland Rail's non-coal below-rail network has been declined, Premier Anna Bligh told State Parliament this morning.

"The Federal Government advised us that they are not in a position to explore our below-rail network," said the Premier.

"An option - given the Commonwealth's position - still open to us was to put it to the private sector - but this was never our preferred course of action.

"A sale to the Commonwealth Government's Australian Rail Track Corporation would have kept the below rail network in public ownership."

The Premier told the Parliament that her Government stood for jobs and keeping Queenslanders in Jobs.

"That' why in June I detailed the hard choices we faced - when I outlined my Renewing Queensland Plan.

"We made a defining choice to keep Queenslanders in work by keeping our building program in tact.

"Our decision to invest $18.2 Billion in the building program protects 127,000 jobs across the state.

"Our deliberate strategy to keep Queenslanders in work - will ensure that we are well positioned to keep leading the nation in economic growth.

"It will ensure we come through the global financial crisis stronger not weaker.

"We chose to keep building the infrastructure we need for the next generation - hospitals, schools, roads and public transport.

She said that in June she said that the State would sell some assets so that we could build more infrastructure.

"Part of the sale would include offering Queensland Rail's;

    * coal network - above and below rail,

    * examining the potential sale of bulk and regional freight,

    * examining the sale of retail and intermodal assets and businesses

    * and to begin negotiations with the Commonwealth Government on the sale or lease of QR's regional below rail network to the Commonwealth owned Australian Rail Track Corporation,

but, we said that we would retain control of Passenger Services," she said.

"As part of the early progress on delivering the Renewing Queensland Plan, the State approached the Federal Government.

She said that in reaching today's the State listened to key stakeholders, including unions, particularly the RTBU.

"In many meetings, and in writing, the RTBU has made several points about the need for ongoing public ownership of track. For example, in a letter to me RTBU Secretary Owen Doogan said:

Whilst there may have been some arguments for a standardisation of the control and maintenance of below rail assets throughout Australia which has led to ARTC being responsible in most States, this relates directly to the standard gauge operations.

"Of course Queensland is different - here we have a narrow gauge network.

"We have a legacy system which sets Queensland apart from the other Australian States.

"She told the Parliament that: "I believe those mighty QR pioneers - dating back to 1865 - those who built our steel-vein rail network - would be happy with our decision.

"The network they built - for the betterment of Queenslanders will remain in the hands of Queenslanders - and the network solely making profits for coal companies will be in investors hands.

"Further investment in the coal lines by any future owner - will be undertaken by the private sector and will not a burden on the taxpayers. Our priority will rightly be better schools and hospitals and roads and public transport.

"It's a win-win," she said.


NOTE: [June 2 Hansard .. page 576]

Our Renewing Queensland Plan will restructure our asset portfolio with the sale of Queensland Motorways Ltd, the Port of Brisbane Corporation, Forestry Plantations Queensland, Queensland Rail's above and below rail coal business and the Abbot Point Coal Terminal. Options for the sale of QR's bulk freight, intermodal, retail and regional freight services will also be investigated and offered to market inthe most appropriate and feasible way. Further, we will commence negotiations with the Commonwealth for the sale or lease of QR's regional below track network to the Commonwealth government owned Australian Rail Track Corporation. However, we will retain full public ownership of Queensland Rail's passenger network.

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

[ozbob]

From Brisbanetimes click here!

Fight against rail sale gathers steam

August 19, 2009 - 3:18PM

Unions have declared a small victory in the fight to stop the Queensland government selling billions of dollars in public assets.

But they say a move by Queensland Premier Anna Bligh on Wednesday not to sell the state's non-coal and non-suburban rail networks is not the end of the battle.

In June, the Bligh government announced it would approach the federal government to buy part of Queensland's rail network, but retain full ownership of the passenger network.

Ms Bligh told state parliament on Wednesday the federal government's Australian Rail Track Corporation had advised her it was not in a position to buy it as it was already involved in $1.2 billion of projects nationally.

The premier said the government would not seek a private buyer.

"Retention of the network in public ownership provides certainty for the future of the state's rail network as our network operates on a different gauge to the rest of the country," Ms Bligh said.

She said she had also listened to union criticism of the move.

"In many meetings, and in writing, the RTBU (rail union) has made several points about the need for ongoing public ownership of track," she said.

"I believe those mighty QR pioneers - dating back to 1865 - those who built our steel-vein rail network - would be happy with our decision."

But she said the government would continue with its program to sell other assets such as the coal rail network, Queensland Motorways Ltd, the Port of Brisbane Corporation, Forestry Plantations Queensland and the Abbot Point Coal Terminal.

Queensland Council of Unions general secretary Ron Monaghan said the latest move would save 4,000 rail jobs, but unions continued to be concerned about the asset sell-off.

"People are genuinely angry about this asset sell-off and we are pleased that the government is finally hearing what the majority of Queenslanders are saying," Mr Monaghan said.

He said the rail decision brought into question the Treasury advice being provided to the government about the asset sale.

About 20 unionists gathered outside Ms Bligh's office in Brisbane's CBD on Wednesday to protest against privatisation.

AAP

[ozbob]

From the Brisbanetimes click here!

Unions boycott public asset sale talks

Unions boycott public asset sale talks
GABRIELLE DUNLEVY
October 19, 2009 - 4:47PM

Queensland unions have boycotted mediation on privatisation plans, saying the government was disingenuous about the aims of the talks.

The state government has hired former Reserve Bank chief Bernie Fraser to mediate the talks, which continue this week.

But the Electrical Trades Union and the Australian Federated Union of Locomotive Engineers have pulled out of the talks, believing Treasurer Andrew Fraser misrepresented the purpose of the discussions in the media.

Mr Fraser had said the sales were going ahead regardless, and the talks were about worker entitlements, but the unions believed they were there to give alternatives to the sales.

ETU secretary Peter Simpson said there was no point continuing if the parties at the table were not on the same page.

"They didn't have any intention of bargaining in good faith," Mr Simpson said.

"Why bother having the talks in the first place? They are being pretty disingenuous."

Meanwhile, about 70 per cent of delegates at the ALP far northern regional conference yesterday passed a motion for the privatisation plans to be scrapped.

Opposition Leader John-Paul Langbroek said it demonstrated the "palpable anger" over the sales throughout Queensland.

"I was in Townsville and Charters Towers at the weekend talking to people who are Labor to the bootstraps, people like the rail station master in Charters Towers about to lose his job," Mr Langbroek said.

"The sense of people in Cairns where I was last week as well is exactly the same as throughout Queensland.

"We've got Labor union branch members who are furious at the government."

Premier Anna Bligh said she was not surprised by the branch's actions, as there had been similar moves by others.

"There is no surprise in this - Labor Party people feel strongly about the ownership of public assets," Ms Bligh told reporters in Brisbane.

"I know that I'm swimming against the tide of party voice on this and if I didn't have to do it I would not be contemplating it."

Ms Bligh said there were decisions to be made on the scope and structure of the asset sales in the coming months, before a communication campaign on the decisions by the year's end.

AAP

[ozbob]

From the Courier Mail click here!

Bligh's big hard sell over assets

Bligh's big hard sell over assets
Article from: The Courier-Mail

Patrick Lion and Myjanne Jensen

October 19, 2009 11:00pm

ANNA Bligh has revealed she may bombard Queensland letterboxes with her asset sell-off mailout before Christmas as some unions abandon negotiations over the controversial sales.

As the Premier gave her strongest indication yet she would proceed with the taxpayer-funded mailout, the Electrical Trades Union and the Australian Federated Union of Locomotive Employees pulled the plug on talks with former reserve bank governor Bernie Fraser.

But Mr Fraser ? called in to act as peacemaker with disgruntled unions ? will continue to pocket $2500-a-day to talk with the remaining unions in coming weeks.

ETU secretary Peter Simpson, representing 1000 affected members, last night slammed Treasurer Andrew Fraser for publicly misrepresenting the content of the first meetings held last week.

"It was outrageous," Mr Simpson said.

"We asked him to recant but he didn't. So we thought it was a waste of time continuing."

But Ms Bligh insisted the talks were important in representing the interests of union members.

Her comments came as Labor faced more embarrassing splits after a gathering of branches at the ALP far northern regional conference voted in favour of a motion against the sell-off at the weekend.

However, the Premier yesterday dismissed the significance of the motion, saying she had been sent a "dozen or more" letters detailing similar motions from individual branches across the state.

"There are some people in the Labor Party who will never be happy about this," Ms Bligh said.

"Unfortunately, I have the responsibility of government. I have to take the tough decisions."

As revealed by The Courier-Mail last month, the Government has been considering the so-called "public education campaign" to sell the asset sales to Queenslanders after woeful poll support for the policy in recent months.

Ms Bligh yesterday suggested the letters to all households explaining the reasons for the sales could arrive before the end of the year after the finer points of the plans had been nutted out.

She said the coming weeks would be spent deciding on the scope and structure of the sale, which includes the coal freight business of Queensland Rail, Port of Brisbane, Queensland Motorways, Forestry Plantations Queensland and the Abbott Point Coal Terminal.

"When we we have had those decisions, we will be in a better position to explain the details to people," Ms Bligh said.

[mufreight]

More political spin that those who are against the asset sales have to pay for rather than the money being spent for justifiable and benefical purposes such as the operation of additional rail services.   

[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
26/10/2009

Bligh unveils The Myths v The Facts

Protecting Queensland jobs and keeping Queensland strong is driving the state government's decision to sell five commercial businesses, Premier Anna Bligh and Treasurer Andrew Fraser said today.

The Premier said the Government's The Myths v The Facts campaign was about addressing the myths and presenting the facts around the assets sale program.

"In times where choices have to be made, my priority is to deliver the schools, roads and hospitals that Queensland families need, not building ports and rail lines that only benefit mining companies," Ms Bligh said.

"We're looking at a $15 billion return on the five businesses we're selling and we will not have to invest more than $12 billion (plus interest) to upkeep them over the next five years.

"That's about $30 billion of Queenslanders money and they deserve to be accurately informed as to why, how and when we are selling the assets.

"I understand community concern about this process, and in my view a lot of that is being driven by misinformation.

"This $1.9 million information campaign is about giving Queenslanders the facts.

"This is one of the largest structural economic reforms in the State's history and Queenslanders are entitled to know the facts as to how and why we are doing it.

"The global financial crisis cut $15 billion worth of income from our bottom line and we are responding by building a stronger Queensland."

Mr Fraser said the government considered many options when assessing how to address the budget problems forced on the state by the global financial crisis.

"We had a choice: sell a small portion of the government's total asset portfolio, or cut back our building program, slash jobs and raise taxes.

"This was a tough decision we didn't want to have to make, but the alternatives would've been devastating to Queensland families and the Queensland economy.

"The global recession means we are facing significant employment challenges. We will fight for every job - job by job, industry by industry, region by region.

"We will not accept cuts to the likes of hospitals, schools and roads when at the same time our population climbs at 2000 new Queenslanders a week.

"These are quality businesses that have already attracted interest from the business community and will provide a great return for the people of Queensland."

The assets for sale:

   * Forestry Plantations Queensland (the State-owned timber business that grows and harvests trees)
   * Port of Brisbane
   * Queensland Motorways Limited (the tolling rights on the Logan and Gateway motorways, not the road and bridge infrastructure)
   * Abbot Point Coal Terminal (north of Bowen)
   * Queensland Rail's coal business (tracks and trains) and related assets.

The Myths v The Facts public information campaign begins tonight (Monday 26 October) with television advertisements and press ads.

"The Myths v The Facts flyer will be delivered to 1.9 million households beginning this weekend."

"If you do not get one call 1800 188 570. For more facts about the asset sales visit www.qld.gov.au."

If members of the public have more questions e-mail thefacts@treasury.qld.gov.au

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

[ozbob]

From the Courier Mail click here!

Queensland asset sell off the only choice: Anna Bligh

Queensland asset sell off the only choice: Anna Bligh
Article from: The Courier-Mail

Premier Anna Bligh

October 26, 2009 11:00pm

IT'S time to separate myth from fact on the Queensland Government's plan to sell five state-owned commercial businesses.

The decision to sell these assets was the toughest I've faced as a politician and I understand the concern. I have been there myself. In the early 1990s, I opposed the sale of Qantas. Today, I can honestly say, I got it wrong.

Since privatisation, Qantas has become one of the world's top airlines. By going private, it could access funds government could no longer provide to invest in a new fleet and employ even more Australians.

At the state level, the logic is the same. Keeping these commercial businesses going over the next five years would cost Queenslanders $12 billion on new coal trains and wharves, money that could otherwise be spent on roads, schools and hospitals.

Queensland is undergoing a transformation driven by a population increase equivalent to adding a city the size of Bundaberg every year. Ensuring our services keep up with that growth and our lifestyle doesn't suffer have to be our main priorities.

Of course there are legitimate concerns about what we're doing. There are also many myths being spread and outright scare-mongering that feed those concerns. For example, these businesses are not, as some claim, a cash cow from which government can endlessly draw money. In 2008-09 they generated $320 million, or less than 1 per cent of the Government's revenue. On the other hand, the Government will save $1.8 billion every year in interest payments on the borrowings needed to sustain them as viable businesses.

And, in every case, we are selling commercial businesses. We are selling the coal freight arm of Queensland Rail, not passenger services. We are selling the tolling rights to the Gateway Motorway, not the bridge and road itself.

And with Queensland Forestry, we will continue to own the land and lease it to a private company to grow and sell timber to private companies.

I would have preferred not to sell these assets.

It would be great to have the money to continue to do everything: run these commercial businesses and continue to provide all of the services and infrastructure our growing community demands.

However, that ignores the realities of the global financial crisis, which blew a $15 billion hole in our Budget, and cost us our AAA rating.

With our Budget bottom line savaged, we had to make a choice. We could have taken an axe to our record $18.2 billion building program, which protects 127,000 jobs. We didn't. We could have done what the West Australian Government has done and cut services in public hospitals and schools and for people with a disability, for our youth in need and other vulnerable Queenslanders. We didn't.

We could have increased taxes such as payroll tax when unemployment is going up. We didn't.

I didn't take on the premiership to squib on the tough choices. I'm prepared to stare down the critics, even those within my own party, in order to do what's right. And to my most vocal critics, I say this: we need to look beyond factional interests.

It has to be about how we act in the long-term interests of all Queenslanders.

Anna Bligh is the Premier of Queensland.

From the Courier Mail click here!

Why Bligh's sell-off is wrong, by John-Paul Langbroek

Why Bligh's sell-off is wrong, by John-Paul Langbroek
Article from: The Courier-Mail

October 27, 2009 11:00pm

WHEN The Courier-Mail readers opened the newspaper yesterday to find Premier Anna Bligh's personal explanation of why the State Government is about to sell-off Queensland's assets, they had every right to ask why she failed to put pen to paper, only eight months ago, to outline her case for privatisation ahead of the state election.

After all, it was known then that Queensland had lost its cherished AAA credit rating; it was known then that Queensland was in record debt; and it was known then that our economic bottom line had been hit by a downturn, coupled with the Government's failure to bank money in the boom times to help get through the tough times.

But the Government assured Queenslanders its policies were all fully costed with not so much as a hint that assets would go in a fire-sale.
The Premier claims she has to make tough decisions. But leadership isn't about being tough; it's about being tough and honest.

Privatisation in Queensland isn't just an economic debate. It is also a truth debate and the two issues cannot be separated. Taxpayers own these assets and are therefore the shareholders. In any model business, a board and its chairperson who offer themselves for re-election, in this case the Government and the Premier, have a corporate duty to provide shareholders upfront with honest financial data and honest financial plans before any ballot.

Before more privatisation, sound economic debate surely demands frank analysis of the consequences of recent State Government decisions to privatise other assets.

The Premier points to a decision, 17 years ago, by the federal government to sell Qantas as a model for privatisation. She does not point to the more appropriate comparison that would be how the State Government privatised the retail arms of Energex and Ergon in 2006, overseen by Bligh while she was Treasurer, and the consequent skyrocketing electricity bills.

No one argues that Queensland has a real problem with debt; it's a problem compounded by the loss of the AAA credit rating.

Budget projections show the Government does not plan to stop borrowing until at least 2017. By that date, even with asset fire-sales, Queensland's public debt will be more than $100 billion; approaching 50 per cent of Queensland's gross domestic product.

Management of this debt is Queensland's greatest economic challenge. That debt took eight years to accrue, but in reasonable terms, even if we started today, it would take about 35 years to pay it all off. That is the legacy this Government has left children from the boom years.

If we sell the five assets Bligh has identified, and sell them at market bottom prices as proposed, the expected return is about $15 billion. However, those five assets currently return a solid income stream through tax-equivalent payments, dividends and commercial interest rates above the borrowing rate of Queensland Treasury Corporation. Should we not be harnessing those assets, rather than throwing them away, to help pay off Labor's debt?

The issue is not one of privatisation; it is one of debt. The fact is, the sale of these assets will not solve Queensland's debt problem.

John-Paul Langbroek is the state Opposition Leader.

[#Metro]

I find it odd the JPL does not cover what he would do in the circumstances.
He's very quiet about that, and it is glaringly missing from his statement.

What would he do?

And actually, the energy distribution network remains a GOC.
Only the retail sellers (the shop front) have been privatised. So the rise in price of electricity might be to do with what is happening at power plants and on the state owned network, rather than at the retail end.

Sneaky, sneaky.

[mufreight]

There is no doubt that Premier Bligh has once again got it wrong.  

[ozbob]

From the Brisbanetimes click here!

Budget in surplus, but assets still on sale

Budget in surplus, but assets still on sale
KATE DENNEHY
November 1, 2009 - 7:54AM

Normally achieving a budget surplus when a huge deficit was expected would be a reason to celebrate but not for the Queensland State Government last week.

Neither the Premier, Anna Bligh nor the Treasurer, Andrew Fraser put out a media release crowing about the good news that the government had achieved a $35m surplus, instead of the predicted $574m deficit.

Mr Fraser announced the result when he released the 2008/09 Economic Report and the 2008/09 Report on State Finances in State Parliament on Thursday.

He told parliament: "This surplus result is a substantial improvement and a welcome one. It does not mean, however, that Queensland has defeated the global recession and victory can be declared.

"We face many continuing challenges, most particularly, we are facing a revenue-less recovery, which means that our key revenue, such as transfer duty, payroll tax and coal royalties, are flatlining if not decreasing in the near term."

Queensland Council of Unions spokesman Ron Monaghan says the government should rethink its asset privatisation plans in light of the surplus, an idea already rejected by the government.

"The government should not go ahead with its assets sales because there's been a $600 million turnaround in less than six months," he said.

"Australia was less affected than virtually every economy in the world therefore we believe that the government should hold its nerve and maintain ownership of public assets for the benefit of Queenslanders now and into the future," he said.

Premier Bligh told reporters she was pleased there had been a small turnaround, but it didn't change the government's need to sell assets.

"Even if we saw a repeat of that (turnaround) in this year and the following year we would still have a budget deficit of more than a billion dollars, and we simply have to address that," she said.

The assets for sale are:

- Forestry Plantations Queensland

- Port of Brisbane

- Queensland Motorways Limited

- Abbot Point Coal Terminal

- Queensland Rail's coal business (tracks and trains)

Ms Bligh announced after this year's state election that the assets would have to be sold to pay off the state's $15 billion deficit.

Last week Ms Bligh launched a $1.9m television and print advertising campaign about the sell-off. In it she said: "We had a choice: sell a small portion of the government's total asset portfolio, or cut back our building program, slash jobs and raise taxes.

"We will not accept cuts to the likes of hospitals, schools and roads when at the same time our population climbs at 2000 new Queenslanders a week."

"We're looking at a $15 billion return on the five businesses we're selling and we will not have to invest more than $12 billion (plus interest) to upkeep them over the next five years.

Mr Monaghan said the government couldn't use the money raised through the assets sale twice. "Either they use the money to pay off the debt to regain their (AAA) credit rating or they spend it on schools and hospitals, but they can't do both," he said.

The Electrical Trades Union state secretary, Peter Simpson said the union was continuing its campaign against privatisation with protests in Longreach and Barcaldine today and tomorrow. Television advertisements would run on Channel 7 during next week's Melbourne Cup racing carnival.

Mr Simpson said 89 per cent of unionists (excluding the Australian Workers Union) were against the sell-off.

"I've been getting calls from cane and wheat farmers who are also worried and I wouldn't mind betting a lot of long-time ALP members will be resigning because of it," he said.

The LNP has said it is against the privatisation but Mr Monaghan and Mr Simpson are unconvinced that the party would not do the same if it were in power. "It (privatisation) was part of their policies before the election," Mr Monaghan said.

"The LNP's like a wolf in sheep's clothing but if they're saying they're against the sell-off it's probably because they can sniff the wind and know they're on a winner," Mr Simpson said.

Source: The Sun-Herald

[david]

This is certainly an interesting development...I wonder where they found all the money from???

[ozbob]

From the Courier Mail click here!

Anna Bligh fights for leadership, asset sale caned

Anna Bligh fights for leadership, asset sale caned
Article from: The Courier-Mail

Patrick Lion and John McCarthy

November 02, 2009 12:00am

ANNA Bligh has been forced to defend her leadership after another woeful poll, as an economist said her asset sell-off was based on "utterly bogus" arguments.

As Cabinet ministers yesterday rallied around the Premier after her satisfaction rating hit a 20-year low for a Queensland leader, Ms Bligh suggested a bungled sell of the $15 billion privatisation plan earlier this year was causing the poll pain.

A Galaxy Poll in yesterday's Sunday Mail found Labor was still set to be booted out of office if an election was held, trailing the Liberal National Party 55 per cent to 45 per cent on a two-party-preferred basis.

But some ministers yesterday suggested the controversial $2 million advertising campaign explaining the sell-off was still in its early days and could yet help Ms Bligh's fortunes to rebound.

Ms Bligh, whose satisfaction rating has sunk to 30 per cent compared to 33 per cent for Opposition Leader John-Paul Langbroek, yesterday admitted she had much work to do to convince voters.

"When I look back, I accept I could have done a better job of explaining it," Ms Bligh said.

But University of Queensland economist John Quiggin said the argument that the asset sales, including parts of Queensland Rail and Queensland Motorways, were needed to support a Budget deficit had collapsed as the Australian economy improved.

He said it also was "utterly bogus" to say the $12 billion the Government would have needed to spend on the assets could be redirected to services.

"The fact that the Government and Treasury have relied on such a poor analysis tells us all we need to know. If the figures came out the right way, they wouldn't need to fudge them," he said.

[ozbob]

From the Brisbanetimes click here!

Asset sales could cost me the election: Bligh

Asset sales could cost me the election: Bligh
November 4, 2009 - 11:26AM

Queensland Premier Anna Bligh has admitted her unpopular plan to sell public assets may see Labor lose government.

The government aims to raise $15 billion from selling off some assets, including Queensland Rail's coal business and Forestry Plantations Queensland, over the next two to three years.

The plan was not revealed to voters before the March state election and is now being explained to the public through a $1.9 million, taxpayer-funded campaign.

Ms Bligh today told ABC Radio she realised the issue could cost Labor the next election "without a doubt".

"You don't, I think, put yourself up for these jobs unless you're prepared to take on the tough political issues," she said.

"It well may (cost Labor the election) but in my view it's equally true (that) if we failed to address the serious consequences of the global financial crisis in our budget that would cost us as well."

Ms Bligh said a much more dramatic turnaround in the economy would be needed to stop the sell-off.

"To say that we could have no asset sales at all could only be achieved if we are prepared to have the budget just go completely south and the building program fall over, and that's not OK," she said.

Ms Bligh's popularity hit an all-time low in a poll published on Sunday, down to 30 per cent.

But she said she was not yet considering whether it would be better for someone else to lead Labor to the next election.

"In every politician's life there's a point where you have to consider those things, but I can tell you I'm a long way from it," she said.

AAP

[#Metro]

We'll they have been in power so long anyway.
If they won again then, it could be a poisoned victory.

[ozbob]

From the Courier Mail click here!

Queensland Government attacked over asset sales plans

Queensland Government attacked over asset sales plans
Article from: The Courier-Mail

John McCarthy

November 06, 2009 11:00pm

DEEP suspicion of privatisation is fuelling opposition to the State Government's $15 billion asset sales program.

Motoring group the RACQ has opposed the sale of Queensland Motorways because it believes that despite government promises, road tolls will rise or become more numerous.

And a growing number of academics and other experts are lining up to question the Government's financial rationale for the sales.

The RACQ said Premier Anna Bligh had promised she would ensure that tolls would go up only in line with inflation once the roads were sold.

But she had not ruled out increases or even the charging of tolls at more locations at the time of the sale.

"So tolls could rise," RACQ spokesman Gary Fites said.

"The public road network is best managed as a full network, not with chunks sliced off and tolled. That is why we oppose toll roads in general, but it also means we should oppose ownership of segments of road by private entities.

"We also do not believe that the Government will achieve the forecast $3 billion sale price as the existing revenue stream does not justify such a high price. That is partly why we are concerned tolls may increase."

The RACQ's opposition follows an analysis by former merchant banker Stephen Morris, who said the creation of a private tolling monopoly undermined the prospects for competition in the sector.

"The private owners of a critical toll road will use their position of encumbency to negotiate changes to their concession agreements," Mr Morris, who worked on privatisations for Schroders, told The Courier-Mail.

He said the ploy had already been used in Australia when the contract for the M5 toll road in Sydney was renegotiated.

The criticisms are likely to fuel the public outcry over the sell-off. The union movement says people are already deeply suspicious about privatisations after electricity asset sales led to higher retail prices.

Economist John Quiggin can find no benefit in the sell-off and is critical of the $1.9 million Myths and Facts campaign to promote it.

"The comparison presented in the booklet is entirely invalid," Professor Quiggin said. "The Government should compare interest savings (from debt repayment) to general government with a soundly based projection of the earnings forgone.

"Preliminary analysis suggests privatisation will harm, not benefit, the Government's fiscal position."

The Queensland Resources Council said it supported the Government's policy commitments to improve efficiencies and competition through privatisation. But it opposed the idea of a sharemarket float of an integrated QR business.

"The coal industry will vehemently oppose the creation of a privatised, integrated QR business that has monopoly control over the coal track network while also operating a coal train business," QRC chief executive Michael Roche said.

Treasurer Andrew Fraser said: "The global financial crisis has ripped a $15 billion hole in the state budget. There is no evidence to suggest the state is about to see that hole repaired despite the marginal turnaround in the economy.

"The fact is, Queensland will be better off.

"The myth is that John Quiggin represents the view of mainstream economists.

"The Government is not undertaking this process for the fun of it."

[ozbob]

From the Courier Mail click here!

Anna Bligh deserted by South Brisbane ALP branch

Anna Bligh deserted by South Brisbane ALP branch
Article from: The Courier-Mail

John McCarthy

November 09, 2009 12:00am

A LABOR branch in Premier Anna Bligh's own electorate has accused her of arrogance over privatisation and declared it no longer has confidence in her.

The South Brisbane branch, which earlier this year called for the Premier to be expelled from the party over the issue, said it wanted an election to have a say at the ballot box.

It called on all elements of the ALP to "act urgently to restore integrity and real Labor policies into the administration of Queensland".

A motion carried by the left-wing branch cited privatisation, overspending on water infrastructure, price rises in public transport, the waste of money on the Gold Coast motor racing event and the controversial anti-bikie legislation as key areas of failure for the Government.

The motion also said: "The branch considers the sale of publicly owned assets to be contrary not only to the policy of the ALP but also to the rules of the party, and no Premier has the right to ride in such a rough-shod manner over these democratically determined party tenets."

Branch spokesman Tony Reeves said South Brisbane was not the only section of the party angry at the Premier. He said regional party conferences had also shown disgust at privatisation.

He said the issue was still contrary to party policy, despite approval at Labor's state conference earlier this year for the current sell-off.

Mr Reeves said branch members expressed concern that the Premier's "I know best" attitude on the proposed sale of public assets "rendered as irrelevant branches and regional conferences within the party's democratic structure which disagreed with her".

"The motion said the branch could no longer abide a government led by Anna Bligh and a cowering ministry, and called for the Government to urgently provide Queenslanders ? and particularly ALP members and union members ? with an opportunity to express their dismay at her actions at the ballot box," he said.

[ozbob]

From the Brisbane mX 12th November 2009 page 4

QR may be back on public track

[#Metro]

Hmm. I think that is a bit wishful because isn't she now having to chase desal plants which cost way more than the Dam?

[mufreight]

Premier Bligh has already said that she will seek funding for the desal plants from the federal government and it is not intended that they will be built until 2017, by then the profits earned by QR and its offshoots such as ARG will have more than covered the cost of the two desal plants proposed to be built for 2017, with the almost certain probability that the current government will not be in power by that time.

[Derwan]

When I read the article, I thought, "How can someone be so dumb?"

The Government has already sunk millions into the Dam in studies, land purchases, etc - and is now effectively back at stage 1.  It will have to spend more money (and quickly) to find an alternative.  If it's to be another dam or expansion of an existing dam, more land purchases may be required.

If anything it puts the Government in a worse financial situation - increasing the need to seek immediate funds from asset sales.  (I'm not saying I support the asset sales.  I'm just using simple logic.)

[mufreight]

The governments forcast of needing two more desalination plants by 2017 to meet demand is possibly somewhat excessive anyway and construction would not need to be commenced fot another five years by which time technology will have improved and presumably technical costs will have reduced.
Those profitable assets that Dictator Bligh wants to sell off now will have appreciated in value and the profits from their continued operation in government hands will further offest the costs of other infrastructure such as the desalinaton plants if in fact they remain the prefered alternative for the supply of water.
By then Dictator Blight will no longer be in government.

[ozbob]

From the Courier Mail click here!

Report labels Anna Bligh's asset sale plan as foolish

Report labels Anna Bligh's asset sale plan as foolish
Article from: The Courier-Mail

John McCarthy

November 18, 2009 11:00pm

A MAJOR economic analysis of the State Government's $15 billion asset sale claims the plan has no credibility, could cost millions and is based on poor economic advice and manipulated Treasury figures.

The report, by Sydney University Professor Bob Walker and his wife Betty Con-Walker, a former NSW Treasury boss, rubbishes the need for the privatisation and claims it would be fundamentally foolish.

It describes the Government's strategy as a "Magic Pudding" which could somehow reduce debt and build infrastructure with the same money.

The report, commissioned by the union movement which is opposed to privatisation, also claims the Government manipulated figures to provide an economic picture that was far worse than in reality.

It was this trashing of the finances that played a large part in the credit downgrade by Standard & Poor's that will cost the state millions, the report says. It says despite gloomy claims in the most recent Budget, the state actually recorded a cash flow surplus of $3.57 billion.

"Queensland's finances were substantially better off than presented," it says.

"While at first glance these (Budget deficits) appear alarming, particularly the deficit of 2008-09, the major components were writedowns that simply reflect the short-term deterioration in asset values."

The authors point out examples where the Budget had broken standard accounting rules to make the economic outlook look worse than it was. Had the accounting been done correctly, the $88 million deficit in the last Budget would have turned into a healthy surplus.

The authors say there are 10 misleading claims made by the Government to support the need for privatisation.

They include claims of a $15 billion black hole, that the assets targeted for sale would cost $12 billion in capital investment if not sold, proceeds of the sale would fund infrastructure and pay debt, the downgrading of the credit rating would cost $200 million, the sell-off would save $750 million a year in interest repayments and $30 billion in total.

"None of these claims can be taken seriously," the authors say.

The report also says Treasurer Andrew Fraser's claim that Queensland would have to pay an extra $200 million in interest because of the S&P downgrade was wrong and the real cost was likely to be between $833,000 and $2.5 million.

"It is unfortunate that these exaggerated claims insult the intelligence of MPs and their constitutents," the authors say.

[ozbob]

From the Brisbanetimes click here!

Economists attack asset sale plan as 'unsound'

Economists attack asset sale plan as 'unsound'
November 24, 2009 - 9:46AM

A group of 19 respected economists has dismissed the Queensland Government's reasons to sell off $15 billion of public assets as ''economically unsound''.

The economists have taken the extraordinary step of issuing a joint statement, which concludes: ''The people of Queensland deserve a robust and well-informed public debate over the costs and benefits of privatisation. So far they have not received it.''

Queensland Premier Anna Bligh after the March election announced a plan to sell major public assets including Forestry Plantations Queensland and the Port of Brisbane.

Her Government has faced a backlash from unions and the public and launched an advertising campaign to counter what the Premier has labelled misinformation.

John Quiggan, from the University of Queensland, said there had been little debate about the merits of the sell-off.

''Important issues (need to be debated) ... including whether the private or public sector would be the most efficient managers, which would be the best bearers of the business risk and the best ways for the enterprise to meet social as well as financial objectives,'' Mr Quiggan said.

The group includes 12 professors of economics from four Queensland universities, as well as academic and Reserve Bank board member Warwick McKibbin.

The statement says: ''We share the view that these questions should be resolved on the basis of well-informed discussion of the economic and social costs and benefits of privatisation, and not on the basis of spurious claims that asset sales represent a costless source of income to governments.''

The economists say arguments put forward in the government information campaign, Facts and Myths on Asset Sales, were ''economically unsound''.

AAP

[ozbob]

From the Brisbanetimes click here!

Unions continue fight against asset sale
November 30, 2009 - 5:48AM

A small contingent of union members rallied outside a state community cabinet meeting yesterday against the sale of Queensland's assets.

The Queensland Council of Unions have been rallying hard against the State Government's $15 billion asset sale with 27 rallies in the past five months.

But only a handful held protests at the State Government's community cabinet meeting at Forest Lake in Brisbane's southwest on Sunday.

QCU general secretary Ron Monaghan said it was not a sign resistance was waning.

"We have had 27 rallies with 500 to 600 people protesting in Rockhampton and Townsville," Mr Monaghan said.

"There will be more rallies and more requests from the government to answer questions."

Mr Monaghan said a report by University of Sydney's Professor Bob Walker showed the government exaggerated its poor financial position.

Treasurer Andrew Fraser has rejected that claim.

Premier Anna Bligh told reporters yesterday that she welcomed debate despite no plans to back down.

The Government announced last week it had begun plans to sell the state-owned forestry plantation business - the first public asset to be privatised under the plan.

AAP

[ozbob]

From the Queensland Times click here!

QR Redbank wins $23.7m contract

QR Redbank wins $23.7m contract

Zane Jackson | 2nd December 2009

IPSWICH rail workers have snared a $23.7 million contract to build train carriages for New South Wales, with QR Redbank Railway Workshops set to make 106 coal wagons.

Premier Anna Bligh yesterday said the Redbank workshops would build the wagons to haul coal in the Hunter Valley, and are scheduled for delivery in April.

The new wagons order follows QR recently being awarded competitive tenders to haul coal for NSW companies Peabody Energy and Felix Resources.

?While many people think of QR purely as a Queensland operator, the reality is that this work is coming to Ipswich purely because QR has gone out into the market and won highly competitive long term commercial coal contracts,? Ms Bligh said.

?QR has been making great headway in winning new business for the haulage of coal in New South Wales and is certainly making its mark ? nationally ? for its successful and strong business reputation.?

Rail Tram and Bus Union state secretary Owen Doogan said the contract showed QR?s coal haulage operation was a profitable business that should not be sold under the State Government?s privatisation plans.

?It goes to show that QR is competitive as a public owned entity, to go out there and win contracts like this shows what a highly-skilled and efficient workplace the Redbank workshops is,? Mr Doogan said.

?If private owners come in, we don?t know if they?d be interested in just looking after their own trains or actually going out and going for these contracts.?

Transport Minister Rachel Nolan said this was the first time the Redbank workshops would be involved in the production of standard gauge wagons for the coal industry.

?QR has a strong reputation in the Hunter Valley and the introduction of these new Queensland-built wagons will help further boost that reputation,? Ms Nolan said.

? The Greater Springfield Chamber of Commerce yesterday said it fully supported the State Governments decision to sell some publicly owned assets.

Greater Springfield Chamber of Commerce president Brian Hooper said the sale of publicly owned assets would position the State Government to help fast-track the rail line to Springfield, duplicate the Centenary Highway and support the Mater Health Service?s bid for a private hospital in the area.

[ozbob]

Premier and Minister for the Arts
The Honourable Anna Bligh
08/12/2009

New QR National to be one of Australia's biggest companies

A listed Queensland Rail - to be called QR National - is set to be a top 50 ASX company and Australia's biggest coal transport and freight business.

Announcing the future structure of QR's businesses today, Premier Anna Bligh said the QR coal and freight network would be floated through a share offer, giving Queenslanders the chance to buy a stake in one of their own.

"The journey Queensland Rail starts today is also the start of a journey toward a new, stronger Queensland," Ms Bligh said.

"And this offers an opportunity for Queenslanders to own their own piece of a Queensland icon.

"Through their investment, they will get the opportunity to watch this business grow into a truly national and international company.

"QR's coal and freight businesses have a proud history of more than140 years. Now is the time for a brand new era for a true Queensland champion."

Ms Bligh confirmed the government would retain passenger services in public ownership, but would push through with its plan to sell the remaining businesses.

"This structure will see us establish a brand new Government-Owned Corporation exclusively for our passenger network.

"This GOC will be entirely focused on delivering the public transport system Queenslanders need. It will also hold the balance of the network."

Ms Bligh today also confirmed three other assets would be leased progressively from next year.

"We have taken advice from our commercial advisors, and they firmly believe that there is a growing appetite for these businesses in the market - the time is right."

Time frames

    * Port of Brisbane (a 99-year lease) - to market in mid 2010
    * Abbot Point (a 99-year lease) - to market in December 2010
    * QR coal and freight business (QR National) - list on the stock market at the end of 2010
    * Queensland Motorways Limited (up to 50 year franchise) - to market in mid 2011

The timber business, Forestry Plantations Queensland, was put to market on 26 November with the process expected to be completed by June.

8 December 2009


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

[ozbob]

From the Brisbanetimes click here!

Govt outlines rail freight sale

Govt outlines rail freight sale
December 8, 2009 - 3:41PM

Queensland residents will be guaranteed a chance to buy into a new publicly-listed rail giant being set up by the State Government.

Premier Anna Bligh today told reporters the government would overhaul the structure of the state's rail system to create two new entities: a publicly-listed company to be known as QR National and a government-owned corporation to be known as QR.

It follows a post-budget announcement to sell-off $15 billion of public assets, including QR's coal and freight arm, the Port of Brisbane, Queensland Motorways' tolling right and Forestry Plantations Queensland.

QR National will have a 99-year lease over the state's coal and general freight networks in a move unions have warned could be "disastrous" for regional services.

On June 2, Ms Bligh estimated the value of the coal and freight assets at $7 billion.

An initial public offering will go ahead in the second half of 2010.

The government will initially retain 25 to 40 per cent of the new company with the intention of selling down its shareholding after a period of time.

As part of the float there will be a guaranteed allocation for Queensland residents.

QR coal and freight workers will get $1000 worth of shares.

QR's passenger business will be headquartered in Ipswich.

Three other publicly-owned assets will be progressively leased from next year.

The Port of Brisbane 99-year lease will go to market in mid-2010, followed by the Abbot Point coal terminal 99-year lease in December 2010.

The Queensland Motorways tolling rights over 40 years will be sold in mid-2011.

The government has already announced the process for the sale of Forestry Plantations Queensland.

The Australian Manufacturing Workers Union, which has waged a fierce battle against the government's asset sell-off since it was first announced in June, has been quick to oppose the move, saying a public share offering would leave regional services vulnerable.

"Today is a sad day for the people of Queensland – particularly in regional areas," AMWU secretary Andrew Dettmer said.

"It just takes one cashed up buyer to swoop in, buy up big chunks of the business and then regional services are doomed."

He said the prospect was at odds with the premier's plan to decentralise growth in major urban areas of the south-east.

"This plan will mean leaving residents in regional areas stuck paying exorbitant prices or missing out on services altogether- which of course will have a flow-on effect for businesses based outside the State's most populated areas."

"Without adequate transport in regional areas, the bulk of Queensland's population will have no choice but to stay near Brisbane."

Queensland Rail's coal and freight business under the name QR National will be listed on the stock exchange at the end of 2010.

Ms Bligh confirmed the government would keep Queensland Rail's passenger services in public ownership.

"This structure will see us establish a brand new Government-Owned Corporation (GOC) exclusively for our passenger network," she said.

"This GOC will be entirely focused on delivering the public transport system Queenslanders need. It will also hold the balance of the network."

Ms Bligh today also confirmed three other assets would be leased progressively from next year.

"We have taken advice from our commercial advisers, and they firmly believe that there is a growing appetite for these businesses in the market - the time is right."

The State Government believes the total asset sell off would generate $15 billion, a figure described as "optimistic" earlier this year, before the economy began to show signs of recovery.

University of Queensland economist Professor John Quiggin in June predicted initial plans to sell would be difficult, despite speculated interest from private companies in France and Germany.

Ipswich – the first home of Queensland Rail has also been announced as the site of the new headquarters for Queensland Rail's passenger fleet.

Tony Moore, Christine Kellett and AAP

[ozbob]

From the Courier Mail click here!

Bligh to float QR coal

Bligh to float QR coal
Article from: The Courier-Mail

By Patrick Lion

December 08, 2009 02:25pm

QUEENSLAND Rail's coal and freight business will be listed on the sharemarket within a year with eligible employees to be given $1000 worth of shares in the new company.

Premier Anna Bligh has today announced details of the Government's $15b privatisation program, including shifting hundreds of workers at Queensland Rail's remaining passenger business from the Brisbane CBD to Ipswich.

The Government has decided other business will be privatised through long-term lease arrangements including:

    * Port of Brisbane under a 99-year lease from mid 2010
    * Abbot Point coal terminal near Bowen under a 99-year lease from December 2010
    * Queensland Motorways Limited will be offered under a 40-year franchise from mid 2011.

Ms Bligh said Queenslanders would be given priority in the share offering and the new QR National would be based in Brisbane and was expected to be a top 50 ASX company.

However the Government will retain 25 to 40 percent of the new company in  the short to medium term to offer the new company stability.

About 9000 QR workers earning less than $180,000 a year will be eligible for the shares while also getting a two-year job guarantee which includes their workplace conditions.

"The journey Queensland Rail starts today is also the start of a journey toward a new, stronger Queensland."

"This is an opportunity for Queenslanders own their own piece of a Queensland icon."

[mufreight]

Premier Bligh now wants the people of this state to buy something that they already own.

[Jon Bryant]

This argument does not make sense as it is getting market value for the asset it is selling. 

I think it is a great strategy.  This way the Government can start to make good policy planning decisions to have more people and freight move by rail. 

[Derwan]

Rail workers walk off job in protest at sell-off

http://www.news.com.au/couriermail/story/0,23739,26462060-952,00.html

MORE than 1300 rail workers across the state have walked off the job in protest at Anna Bligh's QR sell-off ... and more are expected to join them.

Three hundred workers at Rockhampton were the first to vote for 24-hour strike action this morning.

They were joined by 600 morning shift workers at the Redbank workshop, west of Brisbane, with another 200 afternoon shift workers joining them.

Two-hundred workers in Townsville have also voted to join the strike, while there are other meetings still to be held at QR railyards around the state.

The industrial action is not yet impacting on commuter trains.

Rail Tram and Bus Union secretary Owen Doogan said the workers were "furious they had been dragged into this."

"They are astounded that the State Government has made them part of privatisation," Mr Doogan said.

"We weren't expecting them to walk off the job, but we are not surprised."

More meetings are due to be held around the state this morning.

The rail workers met after Premier Anna Bligh yesterday announced QR's coal and freight business would be packaged and sold and Queensland residents will be given first access to the share offering.

While the Government will initially retain a controlling stake of up to 40 per cent in the new company - QR National - the sale late next year is expected to still reap more than $4 billion, dwarfing Myer's recent $2.4 billion sell-off.

Amid a fierce union campaign against the sale, the Government will give about 9000 QR employees forced to switch to the new entity $1000 in shares and offer them a further $4000 worth at a discount.

[Jon Bryant]

With oil predicted to be $4 by 2016 the demand for rail, as one of the most efficent modes for transporting goods and people, these workers are going to be flat out not unemployed.  Public listing allows the new QR to aceess far greater sources of funds, etc to grow the business to meet predicted demands  This is a win win for the company, the workers, the customers and the government.