Libs slam grain, freight haulage closure

[ozbob]

From Herald Sun  click here!

Libs slam grain, freight haulage closure

Libs slam grain, freight haulage closure
Article from: Herald Sun

Ellen Whinnett

January 07, 2008 12:00am

GIANT freight company Pacific National pocketed $142 million in tax-payer funds eight months before announcing it would abandon Victoria's grain and container haulage business.

The Government paid Pacific National more than $133.8 million to buy out its lease of the rail network last year, after then premier Steve Bracks pledged before the election to take the rail lines back into government hands.

It has since received another $7.7 million for operating costs.

But the Government did not include any clauses in the contract requiring Pacific National to continue using the line.

The company has now announced it will sell or close its grain haulage business and, from February 5, stop hauling containers from Mildura, Warrnambool, Horsham and Ballarat.

Mr Bracks had claimed before the election that the take-over of the lease would give farmers "better options" for freight movement.

Public Transport Minister Lynne Kosky had also declared the deal to be a "major step towards a better freight network for regional Victoria".

Instead, farmers are looking for a new way to move grain. If the entire Pacific National load is to be moved by road rather than rail, 40,000 truck trips a year will be required.

The Government's moves to buy back the rail network came after complaints from other operators about the prices being charged by Pacific National to use the rail, and years of neglect of the rail line infrastructure.

The former Kennett government privatised the rail network in the mid-'90s by selling a 45-year operating lease to Pacific National, which is half-owned by transport giant Toll.

Government spokesman Alex Twomey said the Government was providing a rebate on some charges to encourage rival rail operators to transport the grain.

"GrainCorp have indicated that it expects to continue to shift grain by rail and is negotiating with Pacific National to do so," he said.

Opposition transport spokesman Terry Mulder said the Government's poor negotiations with Pacific National meant there would be 40,000 more B-double trucks on Victorian roads.

"John Brumby and the Government have been absolute wood ducks to hand over that money without a commitment by Pacific National to stay on, or to at least find another operator.

"The company has pocketed about $142 million in taxpayers' money and we have got almost nothing out of it."