Independent commission of audit

[ozbob]

Minister for Energy and Water Supply
The Honourable Mark McArdle

Reforms will deliver Queensland value from assets

Reforms currently underway to Queensland's electricity sector will deliver further financial benefits, with profits from the sector tipped to exceed $1 billion in the few years.

Queensland Energy Minister Mark McArdle said the pace of reform in the electricity sector needed to increase to ensure it was competitive and delivered value to Queenslanders.

"We have an excess of cheap coal yet we have soaring electricity prices," Mr McArdle said.

"In many cases it is because of over-building of the network. In other places it reflects on work practices that impede management from achieving greater efficiencies."

Mr McArdle said he was confident reforms currently underway would go a long way towards keeping down electricity prices, but he was concerned that some work practices, being pursued by some Unions, would hold back reform.

"Instead of protesting and running campaigns against hypothetical asset-sales policies, Unions would be better off ensuring the public could see the value of the electricity businesses and working to keeping prices down," he said.

"The best way for Unions to show the public the value of public assets, is to get behind the efforts to achieve efficiencies and keep electricity prices down."

Mr McArdle said major reforms currently underway seek to reduce the annual cost of the Community Service Obligation (CSO) in regional areas which has doubled in recent years.

"Reducing costs and increasing the returns from Government-owned electricity assets is the best way of keeping prices down and demonstrating value from these businesses."

[ozbob]

Couriermail --> Former Victorian premier Jeff Kennett says asset sales make sense but that Campbell Newman won't break trust

[ozbob]

Brisbanetimes --> LNP won't rule out long-term asset leases

[ozbob]

Brisbanetimes --> Newman not convinced about power sell-off

[ozbob]

From the Queensland Times click here!

QR is being 'privatised by stealth'

QR is being 'privatised by stealth'
Joel Gould 6th Mar 2013 6:00 AM

THE plan to allow a private company to maintain rolling stock at the new multi-million dollar Wulkuraka train maintenance depot has been slammed by the rail union as privatisation by stealth.

Transport and Main Roads Minister Scott Emerson said in yesterday's QT that the private sector would supply 75 six-car trains that would be maintained by a "public-private partnership".

The two companies bidding for the work are Bombardier Transportation Australia and AdvanceRail.

But Jason Young, state rail organiser for the Electrical Trades Union, said: "This is the start of the privatisation of the passenger trains of Queensland Rail (QR).

"The Newman government say they won't privatise without getting a mandate, but they are doing it by stealth."

For the future, he said, it could mean "the closure of the yard at Bowen Hills and less work there".

"It will mean less job certainty for employees because ... as the fleet is replaced the older vehicles will be retired and the workforce dwindled down, with the work going to private contractors," he said. "All their employment conditions will be gone."

Ipswich West MP Sean Choat said the government's plan was not privatisation.

"The people with the contract are going to be doing work for QR on a QR site and that is good enough for me to say that Ipswich will have a continuation of rail activity and rail workers into the future," he said.

"The facility will continue to be owned by QR, through the State Government, so it is not privatisation. The model we are using is the same model proposed by the previous government."

Mr Young said Mr Choat was incorrect to say the depot was Queensland Rail-run "unless he can guarantee that all the employees are Queensland Rail staff, but that is not going to happen because it is being privatised".

"We have not been consulted on this, so I would say it is a breach of their enterprise agreement and I will now start getting some advice on any possible repercussions we can take on this," he said.

[HappyTrainGuy]

Ummmmm.... Bligh and co was the one that made the tender a whole of life contract.

[#Metro]

Makes me wonder, do these folk live in houses they built themselves and when their loo has a problem do they call a plumber contractor? Did I just sell my house or privatise it?

[SurfRail]

I'm going to come out and say it - not everybody is going to like it.

The unions, especially the RTBU, are NOT our friends when it comes to achieving what we are aiming for through our advocacy.

They represent a stumbling block of the first order - making it politically difficult to do logical things like the proposed NGR arrangements, making it difficult to timetable around excessive entitlements for turnaround time (bus and train), fighting to retain staff in roles where they no longer really belong, criticising the barest hint of network rationalisation and improvement... it goes on and on. 

I am of the view, after a very long look over may years, that the RTBU is fundamentally inimical to passengers, and I am not ashamed of it.

[somebody]

I'm going to come out and say it - not everybody is going to like it.

The unions, especially the RTBU, are NOT our friends when it comes to achieving what we are aiming for through our advocacy.

They represent a stumbling block of the first order - making it politically difficult to do logical things like the proposed NGR arrangements, making it difficult to timetable around excessive entitlements for turnaround time (bus and train), fighting to retain staff in roles where they no longer really belong, criticising the barest hint of network rationalisation and improvement... it goes on and on. 

I am of the view, after a very long look over may years, that the RTBU is fundamentally inimical to passengers, and I am not ashamed of it.

I stand with you on this point.

EDIT: It particularly bothers me about the excessive turnaround times at terminii.  And wanting to keep guards.

[ozbob]

Brisbanetimes --> Costello conflict claim

[SurfRail]

^ Fascinating that this has come from somebody with ties to his part of the political spectrum.

I can think of bigger and more obvious conflicts of interest involved here...

[ozbob]

Brisbanetimes --> Up to 90 per cent of Queenslanders oppose privatisation: poll

[ozbob]

Brisbanetimes --> Costello report to be released this month

[SurfRail]

I'm going to come out and say it - not everybody is going to like it.

The unions, especially the RTBU, are NOT our friends when it comes to achieving what we are aiming for through our advocacy.

They represent a stumbling block of the first order - making it politically difficult to do logical things like the proposed NGR arrangements, making it difficult to timetable around excessive entitlements for turnaround time (bus and train), fighting to retain staff in roles where they no longer really belong, criticising the barest hint of network rationalisation and improvement... it goes on and on. 

I am of the view, after a very long look over may years, that the RTBU is fundamentally inimical to passengers, and I am not ashamed of it.

Now more sure of this than ever.

[p858snake]

Brisbanetimes --> Costello report to be released this month

Abbott has finally got around to reading them then?

[ozbob]

State Cabinet met earlier in the week to consider this ICA.  Expect it to be released during the forthcoming parliamentary week ...

[ozbob]

LNP Party meeting today re ICA ...

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

Twitter

Robyn Ironside ‏@ironsider 1m

Mr Costello and Treasurer Tim Nicholls arrive at parly for party room meeting on CoA report. #qldpol http://t.co/S8PTfOb8Uy

[ozbob]

From the ABC News click here!

LNP members meet for Costello report debate

LNP members meet for Costello report debate
By Melinda Howells

Queensland Premier Campbell Newman says he will not proceed with asset sales or other changes without the consensus of Liberal-National Party (LNP) MPs.

The party room have gathered at Parliament House for a briefing on the Costello Commission of Audit into the state's finances.

The full report and the Government's response will be released in Parliament tomorrow.

Only the executive summary of the report was released last month, which could include the outsourcing of services and asset sales.

Mr Newman says Cabinet has made recommendations on what action to take, but the party room will have the final say.

"Today in the party room they get to thrash this out and I'm sure they will - I'm sure we'll reach a consensus," he said.

Report author and former federal treasurer Peter Costello says while asset sales may be controversial, the other options are higher taxes or cuts to services.

"You've got a menu here and most of the meals on the menu aren't that appetising," he said.

Mr Costello says Queensland risks further downgrades to its credit rating if the State Government does not adopt his recommendations.

"Queensland won't get back to a AAA [rating] - the risk is that Queensland will be downgraded further," Mr Costello said.

"There are no easy answers here - the money's gone out and the money's been spent.

"Somebody's got to clean up the mess."

Queensland Treasurer Tim Nicholls says there will be an open discussion on the proposals.

"I'm actually quite excited with the presentation that we're going to be making today," Mr Nicholls said.

"We're obviously delighted to be taking it to the party room and have a proper full debate and give members of the party their say.

"This is not like Labor - some rushed or enforced outcome - this is actually a proper, full debate."

Before this morning's Cabinet meeting, Mr Newman was asked if MPs in marginal seats will support the Government's plans.

"Well, I'm one of them," he said.

"At the end of the day I'm here to do the right thing and whether I'm here or not in the future, doesn't really concern me personally.

"What concerns me is that there is an LNP Government that continues in the next term to implement important reforms."

[huddo45]

From the ABC News click here!

LNP members meet for Costello report debate

LNP members meet for Costello report debate
By Melinda Howells

Queensland Premier Campbell Newman says he will not proceed with asset sales or other changes without the consensus of Liberal-National Party (LNP) MPs.

Funny, I seem to remember that little Napoleon saying there would be no asset sales without a mandate from the voters. 

[ozbob]

Outsourcing will be the new black ....

[ozbob]

Couriermail --> Premier Campbell Newman blocks asset sales despite LNP Liberal National Party push

[ozbob]

Outsourcing will be the new black ....

Brisbanetimes --> Asset sales out, but outsourcing in

What a surprise ... not!   

[curator49]

Well, we can kiss Cross-River-Rail goodbye at least for a few more years along with any other infrastructure developments (road and rail), and that should include "flood proofing" the Bruce Highway which is really an impossibility.

The Feds are in the same boat with insufficient income and too much on outgoings and unfunded promises. The NDIS is going to cost mega-millions and the only way I could see is to increase the Medicare Levy to fund it. GST which is collected by the Feds is only divided between the States is likely to rise too as the States are all in the same financial situation and in desperate need of increased revenue. If the Feds can't fund their own programs it is highly unlikely that they could fund any State infrastructure programs too.

Be ready for a lot of pain in the hip pocket.

The trouble is without any spending on essential infrastructure our economy can at best stagnate or at worst go backwards. I see the Europeans are re-thinking the extreme austerity measures they have been imposing realising now that there is a need for some targeted funding to encourage economic growth.

[#Metro]

Gillard has her $12BN black hole to deal with as well, hard to see how all these projects are going to be funded.

[Jonno]

The Newman Govt will keep spending on roads despite the negative ROI and ongoing drain on taxes.  Shut some schools to fund a $65M intersection or Billion dollar Gateway expansions.  We're building the wrong infrastructure....still!!

[#Metro]

Yes, but the current bus system design is negative ROI as well...
PT has to be well organised and effective, not the spaghetti soup it is ATM

[ozbob]

Queensland Parliament: Live Parliamentary Chamber broadcast

--> http://www.parliament.qld.gov.au/en/work-of-assembly/broadcast-chamber/live

From 9.30am .. 

[ozbob]

Premier speaking now ..

No electricity privatisations ..

=========

Twitter

David Gibson ‏@DavidGibsonMP 2m

"@Tencb: on costello #COA report 155 recom @theqldpremier will adopt 118, 13 'noted" six rejected" #qldpol

[ozbob]

Bingo ...

Twitter

TEN News Queensland ‏@tennewsqld 18s

RT @Tencb: .@theqldpremier city rail passenger services to be opened up to private operators #costello #qldpol

[ozbob]

Twitter

TEN News Queensland ‏@tennewsqld 57s

RT @Tencb: .@theqldpremier "lets be clear contestability is not the same as outsourcing" #qldpol

[ozbob]

Queensland Government's response to the Commission of Audit's final report

--> http://www.treasury.qld.gov.au/coa-response/

[ozbob]

Public transport

--> http://www.treasury.qld.gov.au/coa-response/better-services.shtml#B3_Public_Transport

B3 Public Transport

15
   

City passenger rail services and network infrastructure be opened up to contestability, like bus services, to allow different providers, including private providers, to bid to operate services and maintain below-rail assets in a particular franchised area under franchise and lease arrangements.
   
Accepted

The Government accepts this recommendation for City Passenger services and rail infrastructure and notes that it is consistent with Government's current direction and will be considered as part of the ongoing reform activities in the Department of Transport and Main Roads.

16
   

Competitive tendering be introduced for long distance and tourist passenger rail service contracts, including :  evaluating the number of routes serviced and frequencies, franchisees and franchise areas before initiating the tender;  owning the rolling stock required to provide the services in a State Government entity, and lease this to the franchisee for the term of the contract.
   
Accepted

The Government accepts this recommendation and notes that the reform of long distance travel is currently under investigation in the Department of Transport and Main Roads. The Government remains committed to effective, efficient and affordable transport solutions for regional Queensland.
17    

Competitive tendering be introduced for bus service contracts throughout Queensland, including evaluating the number of routes serviced and frequencies, franchisees and franchise areas before initiating the tender.
   
Accepted

The Government accepts this recommendation and notes that the reform of bus service contracts has been the subject of major investigation in the Department of Transport and Main Roads. The Government remains committed to strong value-for-money outcomes for Queensland taxpayers and the development of efficient and affordable bus services.

18
   

Mount Isa rail freight line be transferred to Port of Townsville to be managed as an integrated supply chain, with a view to divestment of the integrated business
   
Accepted in part

The Government accepts the recommendation as it relates to the benefits of an integrated supply chain. However, while there may be operational benefits from an integrated supply chain, further work is required to determine whether the transfer is the best way to achieve these benefits. The Government does not currently have a policy to sell State assets and remains fully committed to seeking a mandate from the Queensland people before divesting itself of any government business.  However, the Government believes this proposal is worthy of an open and transparent community debate to establish its viability and to inform stakeholders of the costs and benefits of Government owning such businesses.

19
   

Queensland Rail remain the owner and operator of the regional rail network, but with the maintenance task to be outsourced through competitive tendering process.
   
Accepted

The Government accepts this recommendation and believes there is an important role for Queensland Rail as the regional rail network owner and operator into the future, but agrees that the maintenance task should be subject to contestability. The Government is mindful of the need to maintain employment levels in regional areas and, in this regard, acknowledges the importance of maintenance delivery from regional bases. It should also be noted that contestability is not an outcome – it is a process where Government tests the market to ensure it is providing the public with the best possible solution at the best possible price.

[ozbob]

Twitter

Robert Dow ‏@Robert_Dow now

@scottemersonmp @theqldpremier @TimNichollsMP Will Brisbane Transport buses be contestable? Hope so ... #qldpol

[ozbob]

Treasurer and Minister for Trade
The Honourable Tim Nicholls

A plan for better services for Queenslanders

The Newman Government today outlined its reform agenda for driving Queensland forward and improving service delivery, with the release of its response to the Independent Commission of Audit's Final Report.

Treasurer and Minister for Trade Tim Nicholls tabled in Parliament both the Commission's Final Report and the Government's response to the report's 155 recommendations.

Mr Nicholls said the Commission of Audit had provided the Newman Government with a blueprint to meet the fiscal and economic challenges facing Queensland.

"The report makes it very clear that business as usual is not an option if we want to repair Queensland's parlous fiscal position," he said.

"The Commission of Audit's modelling shows us that the economic growth rate over the next 40 years will be significantly lower than it has been over the last 25 years.

"At the same time the government is facing a growing demand for services with limited options for raising additional revenue.

"This is an issue that we must confront now if we are going to provide future generations with the same great opportunities we have enjoyed in the past here in Queensland."

Of the 155 recommendations made by the Independent Commission of Audit, the Government has proposed to adopt 118 outright.  A further 13 are noted, six not accepted and the remainder are under consideration. 

"The Final Report makes recommendations on the sale of Government businesses, but the Government's position remains unchanged," Mr Nicholls said.

"An open and informed debate is required and the Government will not sell these businesses without a mandate from the people of Queensland.

Mr Nicholls said the Government had ruled out selling off government-owned electricity transmission businesses.

"However we will be investigating the possibility of divesting other businesses, including Stanwell, CS Energy, QIC, the Port of Gladstone and the Port of Townsville.

"Unlike the previous Bligh-Fraser Labor Government, which embarked on a fire sale of assets, the Newman Government will be guided by what is in the best interest of Queenslanders in any future decision."

Mr Nicholls said the report was about much more than government ownership, with only five of the Final Report's recommendations relating to the sale of government businesses.

He said the only way the Government could expand and improve frontline services for Queenslanders was to fundamentally change the way services are delivered.

"The report recommends the government continue to provide core services such as policing, public safety, emergency and justice services," Mr Nicholls said.

"It also recommends the government work more closely with non-government providers to find the best and most cost-effective way to deliver other social services without compromising quality or service."

"There are Queenslanders who aren't getting the services they need because for decades the Government hasn't changed the way it does business.

"We need to ensure that quality services are provided by the most efficient and effective provider, whether that is government or non-government.

"The Final Report also makes recommendations on changes to the way the public service is structured, organised and managed to be more flexible, responsive and efficient in supporting service delivery in a modern 21st century economy.

"Our goal is to make Queensland's Public Service the best in all of Australia.

"The Government's response is a plan for better services for Queenslanders, a better public service and restoring Queensland's financial health.

"It's about making Queensland the best state in Australia and about making this the best government in Australia."

Mr Nicholls said the Newman Government and its members wanted the people of Queensland to join with them and take part in the significant reform journey ahead.

"It will increase productivity, deliver better services and make sure Queensland is a Great State with Great Opportunity," he said.

More details of the report are available at www.qld.gov.au/betterservices.

[ENDS] April 30 2013

[#Metro]

http://www.commissionofaudit.qld.gov.au/reports/coa-final-report-volume-1.pdf

Transport services
The Government faces an increasing cost burden in the subsidies that it pays to
provide public rail and bus transport services. To ensure the strongest incentives to
improve efficiency, the Commission considers that these services should be
restructured to be delivered through contestable contracts under franchise and lease
arrangements

Hope BT is listening...

[ozbob]

Final Report

The Queensland Commission of Audit's complete final report was released publicly on Tuesday, 30 April 2013.

--> http://commissionofaudit.qld.gov.au/reports/final-report.php

[ozbob]

On the face of it, the PT outcomes I personally do not have a major issue with.

Queensland Rail can still be in the game, but I would also expect that Brisbane Transport Bus be contestable. 
Likewise, BT can still be in the game.

If BT not contestable, all bets off ...

[ozbob]

http://www.commissionofaudit.qld.gov.au/reports/coa-final-report-volume-2.pdf

Increases in the payment required to be made to operators (especially to BT) for the
provision of bus services are a significant financial risk for the State. As with rail services,
the increased efficiency of bus services is most effectively achieved by introducing
competitive pressure into service delivery.

2-122

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

Well there you go ....   

[nathandavid88]

It might be a bit early to ask but what does this mean for QR, in particular the Citytrain operations?

And it's good to see that the acknowledgement that BT represents a financial risk to that state. Maybe the sacred cow might yet be made to work?

[ozbob]

It might be a bit early to ask but what does this mean for QR, in particular the Citytrain operations?

And it's good to see that the acknowledgement that BT represents a financial risk to that state. Maybe the sacred cow might yet be made to work?

As I understand operation etc. will be opened up to competitive tendering.  Does not exclude QR as such ...  they would tender as well I would hope and expect.  Same deal with BT I would imagine ..