29 Jul 2011: Australia: Carbon price policy still off the rails

[ozbob]

Media release 29 July 2011

Australia: Carbon price policy still off the rails

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport passengers strongly supported the Australian Conservation Foundation (ACF) in their call for 'Two thirds of the transport budget should be spent on public and active transport and one third should be spent on roads' (1). The carbon price policy recently put forward by the Federal Government actually penalises rail and public transport and favours more transport pollution by cars and trucks.

Robert Dow, Spokesman for RAIL Back On Track said:

"Australia blunders on with worsening road congestion and road trauma, and public transport poor utilisation and development. In the face of looming oil price rise crises and failing road non-solutions the authorities continue to ignore reality and waste yet more scarce funds and further exacerbate environmental damage and cause massive cost impacts by encouraging more cars and trucks on already congested and damaged roads (2)."

"Time is running out.  The ACF is correct in their call for the funding imbalance to roads be corrected with the majority of funding directed to sustainable transport solutions."

"A carbon price policy that exempts cars, but not public transport will simply mean increased fares for public transport which will in turn drive people back to cars, with the massive flow on cost impacts of increased congestion, worsening pollution and increased health sector costs from road trauma (3). The fact that this is embedded in the carbon price policy means that the policy will actually increase pollution rather than reduce it. This stamps the carbon price policy as stupid!"

"All State jurisdictions are increasingly becoming concerned with this perverse outcome of the proposed carbon price policy."

"We call on the Federal Government to ammend the carbon price policy so that public transport is exempt, in the same way that cars are, and rail is treated equitably with road transport."

References:

1. Australia's public transport a poor cousin to roads http://www.acfonline.org.au/articles/news.asp?news_id=3378

2. Australia faces looming fuel shortages http://www.aspo-australia.org.au/References/Aleklett/News-release-v4-JG.doc

3. http://railbotforum.org/mbs/index.php?topic=6359.0

Contact:

Robert Dow
Administration
admin@backontrack.org

[ozbob]

Discussion thread  --> http://railbotforum.org/mbs/index.php?topic=6307.0

[ozbob]

Media release 29 July 2011 re-released 24 August 2011

Australia: Carbon price policy still off the rails

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport passengers strongly supported the Australian Conservation Foundation (ACF) in their call for 'Two thirds of the transport budget should be spent on public and active transport and one third should be spent on roads' (1). The carbon price policy recently put forward by the Federal Government actually penalises rail and public transport and favours more transport pollution by cars and trucks.

Robert Dow, Spokesman for RAIL Back On Track said:

"Australia blunders on with worsening road congestion and road trauma, and public transport poor utilisation and development. In the face of looming oil price rise crises and failing road non-solutions the authorities continue to ignore reality and waste yet more scarce funds and further exacerbate environmental damage and cause massive cost impacts by encouraging more cars and trucks on already congested and damaged roads (2)."

"Time is running out.  The ACF is correct in their call for the funding imbalance to roads be corrected with the majority of funding directed to sustainable transport solutions."

"A carbon price policy that exempts cars, but not public transport will simply mean increased fares for public transport which will in turn drive people back to cars, with the massive flow on cost impacts of increased congestion, worsening pollution and increased health sector costs from road trauma (3). The fact that this is embedded in the carbon price policy means that the policy will actually increase pollution rather than reduce it. This stamps the carbon price policy as stupid!"

"All State jurisdictions are increasingly becoming concerned with this perverse outcome of the proposed carbon price policy."

"We call on the Federal Government to ammend the carbon price policy so that public transport is exempt, in the same way that cars are, and rail is treated equitably with road transport."

References:

1. Australia's public transport a poor cousin to roads http://www.acfonline.org.au/articles/news.asp?news_id=3378

2. Australia faces looming fuel shortages http://www.aspo-australia.org.au/References/Aleklett/News-release-v4-JG.doc

3. http://railbotforum.org/mbs/index.php?topic=6359.0

Contact:

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

[ozbob]

http://www.ara.net.au/UserFiles/file/Communiques/11-08-25_OpenLetter_CarbonPrice.pdf

25 August 2011

Open letter to the Minister for Infrastructure and Transport: The carbon
price package unfairly disadvantages rail, the emissions friendly mode

Dear Minister,

The Australasian Railway Association (ARA) wishes to highlight its concerns over the carbon
price package and provide solutions for improving the effectiveness of the recently released
Securing a clean energy future: The Australian Government's climate change plan ('the
Plan').

The ARA, on behalf of the Australian rail industry, wishes to convey its disappointment at
the Plan's application to the transport sector, including:
- The limited access for rail entities to the various clean energy and energy
efficiency funds;
- the transitory exemption of heavy road vehicles from the carbon price
mechanism without similar exemption for rail operators;
- The exemption of foreign shipping from the carbon price; and
- The exemption of petrol from a carbon price without similar exemptions for
public transport.

The ARA seeks amendments to the Plan including greater access for the transport sector to
clean energy and energy efficiency funds set up under the Plan, a two year
exemption for rail freight operations that compete with heavy road freight vehicles;
and the revision of the Plan to ensure that domestic freight carried on foreign ships
is included in a carbon price mechanism.

The rail industry is disappointed at the application of the carbon price to the
transport sector. The rail industry has supported action on climate change and is
willing to bear the costs of a carbon price if it were fairly applied across the transport
sector. To put the carbon price impost into context, increased electricity and diesel
prices will cost the rail industry around $100 million annually.

The rail industry is concerned about the two year carbon price exemption granted to
heavy road vehicles. It is counterintuitive carbon price policy to attach additional
charges to the more emissions friendly mode of transport, especially when the
modes compete in the same market. Intermodal rail freight creates around 3 times
fewer emissions when compared to heavy vehicle road freight.

Our concern extends beyond the two year period of the heavy road vehicle
exemption. We note that the exemption will be reviewed and possibly removed by 1
July 2014. The phasing out of the heavy vehicle exemption is by no means certain.
We fear that the carbon price exemption for heavy vehicles will be extended
indefinitely.

The imperative for the heavy vehicle exemption seems to stem from the need to
provide truck operators with time to adjust to the carbon price mechanism and to
minimise potential job losses. The rail industry faces similar, if not greater,
adjustment costs. A carbon price will only have a marginal impact on what rail
operators can do in terms of reducing emissions in the short-medium term and will
adversely impact on rail's operational costs. Many small operators, such as SCT
Logistics, El Zorro, South Short Haul Rail and Independent Rail Australia, will
struggle to cope with this new tax, especially when combined with the exemptions
granted to their road freight competitors. Our preliminary research suggests that
intermodal and grain rail freight will shrink by 4% as a direct result of the carbon tax.
Smaller operators will bear the brunt of this decrease. This policy setting will bring
about job losses within the rail industry and increase the transport sector's energy
and emissions intensity.

The perverse outcome of the current carbon policy will be that the populations of
Western Australia and North Queensland will pay increased prices for their goods,
including groceries and clothing, as a result of this policy. More than 80% of goods
moved between the east coast and Western Australia go by rail. Without adequate
time to adjust to the carbon price, operators will have to pass on increased costs to
consumers. This will also adversely affect rail's share of this freight market, and
subsequently increase the overall emissions for freight to and from Western
Australia.

The ARA seeks similar transitory measures for the rail operators who compete with
heavy road vehicle users. The proposed transitory exemption would mainly apply to
intermodal and grain rail freight services. The cost of the proposed rail exemption
over two years would not exceed $20 million. The equivalent exemption for heavy
road vehicles does not discriminate between small and large operators, and will cost
the Government in excess of $200 million in lost revenue. The fate of rail freight
operators competing with road freight should be linked and treated equally under
the carbon price mechanism.

Similarly, the exemption of foreign shipping from a carbon price mechanism is a
concern to all domestic freight operators. Of particular concern is the effective
carbon price exemption of domestic freight transported on foreign ships. This
essentially places domestic freight operators, including domestic shippers, at a
further price disadvantage and risks Australian jobs in the transport sector.
The ARA further seeks clarification as to the eligibility of the rail industry to the
various proposed climate change funds. Upon our initial reading of the Plan, and
based on the limited details available, the rail industry seems to be only afforded
limited access to the billions of dollars in complimentary measures provided, with
the $200 million Clean Technology Innovation Program being most applicable to
rail. Rail is a capital intensive industry with extremely long asset lives. This acts as a
barrier to the uptake of new technologies and processes that would lead to
significant change in the emissions intensity of the rail industry. Greater access to
funds that promote energy efficiency and technology innovation would help alleviate
these barriers. Access to such funds would provide the greatest emissions savings
in the rail industry.

The ARA is frustrated by the exemptions on petrol and the failure to grant
exemptions to public transport. However, this matter is best dealt with between the
federal and state governments.

While the rail industry acknowledges and welcomes the Government's increased
spending on rail infrastructure, it should be noted that the spending has only
increased rail's share of land transport infrastructure expenditure to around 18%,
while road receives 82%. Furthermore, creating pricing disparities between road
and rail, through unequal application of pricing and taxation mechanisms will negate
the benefits of this increased rail infrastructure spend and jeopardise any potential
return on capital for the Government.

The Australian rail industry urges the Minister and the Government to seriously
consider the reasonable and rational amendments to the carbon price package
outlined in this letter.

Yours sincerely,
Bryan Nye
Chief Executive Officer

[ozbob]

Sent to all outlets:

8th September 2011

Carbon stupidity

Greetings,

Some more interesting comment on the stupid carbon price policy with respect to transport ...

The concluding sentence sums it up well:

"One can only hope that eventually common senses prevails and that the Federal Government can shake itself out of its malaise, but the very fact that they have prepared a policy that is supposed to reduce emissions, but will actually result in a movement of freight from rail to road, and commuters off their trains and into the cars, really does really beggar belief."

===============================================
Rail Express -> Government still ignoring benefits of rail


By Mark Carter

It has been obvious for many years that rail has the most to offer when it comes to providing the best transport solutions with the potential to alleviate carbon emissions and improve our quality of life, but unfortunately the message still does not seem to be getting through to our politicians.

Last month, it was good to see the Australasian Railway Association (ARA) gain some valuable air-time and a platform to launch its report The True Value of Rail, commissioned Deloitte Access Economics, at the National Press Club.

The ARA says the report for the first time quantifies the economic, social and environmental benefits of rail investment – often referred to as "externalities" – and is urging governments across Australia to unlock the billions of dollars lost annually in economic productivity, urban congestion and traffic accidents by delivering greater investment in rail infrastructure.

In launching the report ARA chairman Lance Hockridge said, "The report provides a very telling commentary on the results of slow, sometimes misguided transport reform in this country over recent decades and this manifests itself not only in extra costs and lost production, but also in poorer outcomes for health, safety and liveability".

ARA chief executive Bryan Nye followed on by saying, "Since 1985, governments have invested more than $293bn on roads".

"Continuing our irresponsible spending on roads will lead us no-where. Governments must consider the true costs and benefits of each transport mode when making investment decisions and developing transport policies," Nye said.

While I feel the way some of the findings of the report have been oversimplified a tad too much for public consumption, this is but a minor quibble and the ARA is to be commended for again attempting to push rail in the spotlight, especially as the debate over carbon emissions ramps up.

The worrying thing though is that the rail industry has been saying these same things over and over for at least two decades now.

I'm sure if I went back and dug out some of the stuff I wrote 20 years ago for Rail 2000, it may not have been as eloquent or as detailed as The True Value of Rail, but the general gist of what we were trying to get across would have been the same.

Through the ARA, the rail industry has gained a much higher profile, more of a presence in Canberra and is certainly listened to a great deal more than we were back in the Rail 2000 days, but it has to be asked, "Are our politicians any the wiser?"   

Unfortunately it would appear not, for just a fortnight after the release of The True Value of Rail, the ARA was forced to issue a communique highlighting the range of inequities imposed upon rail by the Federal Government's carbon pricing plan, Securing a Clean Energy Future.

The key areas of concern for the ARA are:

•    The transitory exemption of heavy road vehicles from the carbon price mechanism without similar exemption for rail operators.

•    The exemption of foreign shipping from the carbon price.

•    The exemption of petrol from a carbon price, without similar exemptions for public transport.

•    The limited access for rail entities to the various clean energy and energy efficiency funds.

Now some would argue that the need to take the government to task over these points is just part of a fine tuning process that precedes most policy releases; the jostling and stakeholder engagement that always seems to be part of the endgame.

Unfortunately this time around I don't think that's the case.

I suggest you take a moment to go back and read again the four dot points that I've listed.

Let's face it, if you were a government and you were casting around for some non-controversial, low cost options that clearly demonstrated your commitment to reducing emissions and combating climate change, surely all four of those would qualify hands down as part of your policy?

The message just doesn't seem to be getting through to our elected representatives, though it has not been for the want of trying and who still think giving trucks a free ride will solve everything.

Quoted in last week's Rail Express, ARA chief economist Ash Salardini said the draft policy would see containerised freight lose about 5% of its market share.

Salardini said the ARA was not asking for Australia's entire rail industry to be exempt, but it was advocating for rail to be exempt where rail and road competed in the same market.

"A carbon price would only have a marginal impact on what rail operators could do in terms of reducing emissions in the short-medium term and would adversely impact on rail's operational costs," he said.

Salardini said under the government's carbon price package, Australia could also expect to see an increase in transport emissions and public transport fares.

"The carbon price was an issue raised by most states at COAG's recent meeting, with some governments requesting the Federal Government provide further compensation because of the carbon price's effect on public transport, however, the Government did not appear to agree," he said.

One can only hope that eventually common senses prevails and that the Federal Government can shake itself out of its malaise, but the very fact that they have prepared a policy that is supposed to reduce emissions, but will actually result in a movement of freight from rail to road, and commuters off their trains and into the cars, really does really beggar belief.

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

Best wishes
Robert

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

On 24/08/2011 3:23 AM, RAIL Back On Track Admin wrote:
Media release 29 July 2011 re-released 24 August 2011

Australia: Carbon price policy still off the rails

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport passengers strongly supported the Australian Conservation Foundation (ACF) in their call for 'Two thirds of the transport budget should be spent on public and active transport and one third should be spent on roads' (1). The carbon price policy recently put forward by the Federal Government actually penalises rail and public transport and favours more transport pollution by cars and trucks.

Robert Dow, Spokesman for RAIL Back On Track said:

"Australia blunders on with worsening road congestion and road trauma, and public transport poor utilisation and development. In the face of looming oil price rise crises and failing road non-solutions the authorities continue to ignore reality and waste yet more scarce funds and further exacerbate environmental damage and cause massive cost impacts by encouraging more cars and trucks on already congested and damaged roads (2)."

"Time is running out.  The ACF is correct in their call for the funding imbalance to roads be corrected with the majority of funding directed to sustainable transport solutions."

"A carbon price policy that exempts cars, but not public transport will simply mean increased fares for public transport which will in turn drive people back to cars, with the massive flow on cost impacts of increased congestion, worsening pollution and increased health sector costs from road trauma (3). The fact that this is embedded in the carbon price policy means that the policy will actually increase pollution rather than reduce it. This stamps the carbon price policy as stupid!"

"All State jurisdictions are increasingly becoming concerned with this perverse outcome of the proposed carbon price policy."

"We call on the Federal Government to ammend the carbon price policy so that public transport is exempt, in the same way that cars are, and rail is treated equitably with road transport."

References:

1. Australia's public transport a poor cousin to roads http://www.acfonline.org.au/articles/news.asp?news_id=3378

2. Australia faces looming fuel shortages http://www.aspo-australia.org.au/References/Aleklett/News-release-v4-JG.doc

3. http://railbotforum.org/mbs/index.php?topic=6359.0

Contact:

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

[ozbob]

Sent to all outlets:

19th September 2011

Australia: Carbon price policy still off the rails

Greetings

The first of Labor's Bills that will create a price on carbon were introduced into Federal Parliament this past week.

Bills that are meant to promote a clean energy future do not favour trucks and cars over rail and public transport.  It is this major flaw that casts the whole carbon price process into doubt.

Best wishes
Robert

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

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

Media release 29 July 2011 re-released 19 September 2011

Australia: Carbon price policy still off the rails

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport passengers strongly supported the Australian Conservation Foundation (ACF) in their call for 'Two thirds of the transport budget should be spent on public and active transport and one third should be spent on roads' (1). The carbon price policy recently put forward by the Federal Government actually penalises rail and public transport and favours more transport pollution by cars and trucks.

Robert Dow, Spokesman for RAIL Back On Track said:

"Australia blunders on with worsening road congestion and road trauma, and public transport poor utilisation and development. In the face of looming oil price rise crises and failing road non-solutions the authorities continue to ignore reality and waste yet more scarce funds and further exacerbate environmental damage and cause massive cost impacts by encouraging more cars and trucks on already congested and damaged roads (2)."

"Time is running out.  The ACF is correct in their call for the funding imbalance to roads be corrected with the majority of funding directed to sustainable transport solutions."

"A carbon price policy that exempts cars, but not public transport will simply mean increased fares for public transport which will in turn drive people back to cars, with the massive flow on cost impacts of increased congestion, worsening pollution and increased health sector costs from road trauma (3). The fact that this is embedded in the carbon price policy means that the policy will actually increase pollution rather than reduce it. This stamps the carbon price policy as stupid!"

"All State jurisdictions are increasingly becoming concerned with this perverse outcome of the proposed carbon price policy."

"We call on the Federal Government to ammend the carbon price policy so that public transport is exempt, in the same way that cars are, and rail is treated equitably with road transport."

References:

1. Australia's public transport a poor cousin to roads http://www.acfonline.org.au/articles/news.asp?news_id=3378

2. Australia faces looming fuel shortages http://www.aspo-australia.org.au/References/Aleklett/News-release-v4-JG.doc

3. http://railbotforum.org/mbs/index.php?topic=6359.0

Contact:

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

[ozbob]

ARA Media Release

http://www.ara.net.au/UserFiles/file/Media%20Releases/12-06-29%20Calculations-prove-carbon-tax-will-increase-emissions.pdf

29 June 2012

Calculations prove carbon tax will increase emissions

The Australasian Railway Association (ARA) has posted a webpage today (http://www.ara.net.au/site/carbon-tax-rail.php) illustrating that the carbon tax will increase transport-related carbon emissions.

Rail companies will pay approximately $110 million per year whilst the road industry is exempt. This will be passed onto rail customers and eventually end consumers, through heightened grocery costs. Rail customers may even switch to the more polluting road freight industry which is exempt from the tax, putting more trucks on our roads and more transport-related emissions into the atmosphere.

ARA CEO Bryan Nye said despite producing three times less emissions than road, rail will be required to pay a pollution tax while road is exempt.

"Trains emit one third the pollution of trucks and yet the rail industry is required to pay a $110 million carbon tax each year whilst one of Australia's largest polluters is given a free pass," he said.

"Ironically, the carbon tax, which is designed to reduce pollution levels, provides a financial incentive to switch to trucks which will put more trucks on our roads, and increase transport-related emissions."

The webpage was launched to educate decision makers, rail customers and the general public on the adverse impacts of the carbon tax on rail transport and the likely increase of transport emissions.

"Through the webpage, we are aiming to educate people on the real impacts of this tax," continued Mr Nye.

"Rail freight operators will be forced to pay tens of millions of dollars with the carbon tax and rail customers are understandably unhappy about the proposed price increases. Some are actively considering switching to road which will put more trucks on our road and increase emissions."

The webpage urges Government to reconsider the illogical application of the carbon tax on the transport sector.

"Rail has repeatedly stated its support for action on climate change but we need to raise awareness that the carbon tax will reduce rail's competitive ability, put more trucks on our roads and increase transport-related emissions."

The Rail Industry, through the ARA seeks amendments to the carbon tax to provide equal treatment for road and rail, by either removing the exemption for the trucking industry or providing the same exemption for rail.

"The Government should explain the logic behind taxing the emissions friendly rail sector and exempting the carbon intensive road heavy vehicles," said Mr Nye.

"If the carbon tax is to be effective in reducing pollution, the way the tax is to be applied to rail and not road needs to change," concluded Mr Nye.

[ozbob]

Media release 29 July 2011 re-released 1st July 2012

Australia: Carbon price policy still off the rails

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport passengers strongly supported the Australian Conservation Foundation (ACF) in their call for 'Two thirds of the transport budget should be spent on public and active transport and one third should be spent on roads' (1). The carbon price policy recently put forward by the Federal Government actually penalises rail and public transport and favours more transport pollution by cars and trucks.

Robert Dow, Spokesman for RAIL Back On Track said:

"Australia blunders on with worsening road congestion and road trauma, and public transport poor utilisation and development. In the face of looming oil price rise crises and failing road non-solutions the authorities continue to ignore reality and waste yet more scarce funds and further exacerbate environmental damage and cause massive cost impacts by encouraging more cars and trucks on already congested and damaged roads (2)."

"Time is running out.  The ACF is correct in their call for the funding imbalance to roads be corrected with the majority of funding directed to sustainable transport solutions."

"A carbon price policy that exempts cars, but not public transport will simply mean increased fares for public transport which will in turn drive people back to cars, with the massive flow on cost impacts of increased congestion, worsening pollution and increased health sector costs from road trauma (3). The fact that this is embedded in the carbon price policy means that the policy will actually increase pollution rather than reduce it. This stamps the carbon price policy as stupid!"

"All State jurisdictions are increasingly becoming concerned with this perverse outcome of the proposed carbon price policy."

"We call on the Federal Government to ammend the carbon price policy so that public transport is exempt, in the same way that cars are, and rail is treated equitably with road transport."

"We support the Australasian Railway Association's call for ' ... equal treatment for road and rail, by either removing the exemption for the trucking industry or providing the same exemption for rail .. ' (4).

References:

1. Australia's public transport a poor cousin to roads http://www.acfonline.org.au/articles/news.asp?news_id=3378

2. Australia faces looming fuel shortages http://www.aspo-australia.org.au/References/Aleklett/News-release-v4-JG.doc

3. http://railbotforum.org/mbs/index.php?topic=6359.0

4. http://www.ara.net.au/UserFiles/file/Media%20Releases/12-06-29%20Calculations-prove-carbon-tax-will-increase-emissions.pdf

Contact:

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org