Queensland Rail to become statutory authority

[nathandavid88]

This just came up on the Courier Mail. QR to lose it's GOC status, becoming a statutory authority and more "passenger focused" apparently.

Queensland Rail to become statutory authority and more passenger focused

by:Steven Wardill From: The Courier-Mail April 15, 2013 2:14PM


QUEENSLAND Rail will be stripped of its status as a government-owned corporation and become a statutory authority.

The Newman Government Cabinet has today ticketed off on the plan as it attempts to drive efficiencies within the taxpayer-owned business.

The shift from a GOC structure to a statutory authority will allow Transport Minister Scott Emerson to directly control QR's day-to-day operations rather than have to formally issue directives.

Mr Emerson told couriermail.com.au that it made no sense for QR to continue as a GOC when the profitable part of its business was sold off by the Bligh government.

He said he wanted QR to be "passenger rather than profit focussed" business but achieve efficient results for taxpayers at the same time.

"As a GOC they are set up to look for a profit," Mr Emerson said.

"I want them set up to look to deliver for passengers.

"And it has got to be doing the right thing by taxpayers as well."

The cost of QR is predicted to increase from $1.6 billion to $1.9 billion over the next two years.

A secret report recently obtained by The Courier-Mail revealed QR's costs per kilometre travelled were significantly higher than other rail networks in Australia.

Staff at QR will be informed this afternoon of the decision to alter the corporation's structure.

This will mean they effectively become public servants however Mr Emerson insisted the move would not impact employment conditions.

"Employee entitlements will remain the same," he said.

Source: http://www.couriermail.com.au/news/queensland/queensland-rail-to-become-statutory-authority-and-more-passenger-focused/story-e6freoof-1226620842205

[ozbob]

Just noted this tweet ...  been at a medical appointment ...

==========

Twitter

Spencer Jolly ‏@SpencerJolly 34m

Scott Emerson Q Rail to become Statutory Authority give Govt greater control #qldpol http://yfrog.com/nyj98eej

[nathandavid88]

Here is the official Government spiel:

Monday, April 15, 2013

Queensland Rail to deliver better services

Queensland Rail will be transferred to a statutory authority, allowing for a greater customer focus and delivery of better train services.

Minister for Transport and Main Roads Scott Emerson said the change would allow the Newman Government to further improve performance of the rail network and bring costs under control.

"The Labor Government was warned in 2009 that Queensland Rail was the most expensive passenger network per kilometre in Australia and chose to ignore the problem," Mr Emerson said.

"Transferring it from a government-owned corporation to a statutory authority brings it closer to government, not privatisation.

"We will make the organisation more efficient so we can employ more train crew, deliver better timetables and add more trains to the network."

The former Labor Government, under former Transport Minister and current leader of the opposition Annastacia Palaszczuk left Queensland with a $2 billion company which relies on 80 per cent funding from taxpayers.

Without action, taxpayer funding of Queensland Rail would need to increase from $1.6 billion to $1.9 billion over the next two years.

Making Queensland Rail a statutory authority means staff will come under the same system as Queensland teachers, nurses and other public servants.

"Passengers won't notice any changes and all Queensland Rail staff contracts and benefits will continue," Mr Emerson said.

"Under the Newman Government, Queensland Rail has already made significant improvement in their reliability after hitting three-year lows in the final months under Labor.

"We've also boosted frequency by adding 150 additional weekly services on the Ferny Grove and Gold Coast lines."

Legislation will be introduced to State Parliament this week with the change expected to take place from early May.

[ENDS] 15 April 2013

[ozbob]

Brisbanetimes --> QR change strengthens state control

[SurfRail]

Here is my cross post from SkyscraperCity, where I saw this first:

GOCs are neither fish nor fowl. They are basically pretend companies with the Minister as the shareholder.

This could actually be a positive move though.

Contrary to what Emmo is saying I actually think this is very much the first step for privatisation of the passenger rail system if you intend doing it properly.

First you bring back the emaciated bits of the old QR as a statutory authority, then you split off the above-rail passenger operations and franchise them out to somebody from the private sector, leaving Queensland Rail as basically the rail system manager only (for the below-rail stuff not directly leased to Aurizon). You do not necessarily have to privatise, but I feel very strongly that the rail system in SEQ would work a lot better if operations were structurally separated out from infrastructure. Transperth Trains isn't private and runs the best for-purpose operations in the country, but they don't concern themselves with anything except passenger operations. QR is very much a coal railway first and a people railway second, even now. First and most prominent excuse for not running more passenger trains is "freight task". The tail is wagging the dog.

In an ideal world, TransLink Division and QR would be merged together with any other remaining passenger transport functions from TMR creating a single Queensland Transport Authority responsible for the rail system, PT development, long distance air/coach/rail services, research and other bits and bobs, in much the same vein as TfNSW.

This could work in the long run.

[ozbob]

TransLink was a Statutory Authority, look where it got them in the end ...

[ozbob]

Opposition Statement

OFFICE OF THE LEADER OF THE OPPOSITION

MONDAY 15 APRIL 2013

QR Staff Face Costello-Led Cuts

Shadow Transport Minister Jackie Trad says changes to the structure of Queensland Rail will pave the way to sell it off.

"The changes will make it easier to cut staff wages and sack more workers making the organisation more attractive to private buyers," Ms Trad said.

"Under this plan to make Queensland Rail a statutory authority the organisation's staff will be under the direct control of the Newman Government.

"With the existing EB agreement running out, Queensland Rail staff will be brought under the state industrial regime for other government employees.

"Last year the Newman Government used its huge majority to pass legislation giving it power to make forced redundancies and effectively shackling the state industrial umpire as a way for the government to directly control wages and conditions."

Ms Trad said cutting Queensland Rail's wages bill and reducing conditions were in line with the secret Costello Audit report recommendations.

"The LNP is using the Costello Report to sell, privatise or outsource government services, including those of Queensland Rail.

"The organisational changes will enable the Newman Government to more directly control outsourcing of Queensland Rail services.

"It will allow them to go down the Victorian path of having franchised services operated by private rail companies," she said.

"As with any outsourcing and privatisation, that means fewer jobs and a focus on profits, not services."

Ms Trad said as a statutory authority the Minister, Scott Emerson, would now have to take full responsibility for Queensland Rail's day-to-day operations.

"In the past year he has run a mile from responsibility and readily played the blame game," she said.

"A classic case was the Minister's attempts to blame TransLink for his own bungled bus routes review, despite the fact he brought it back into the department under his control.

"Scott Emerson must be prepared to take responsibility for both the good and the bad things that happen in Queensland Rail.

"In the past year he has shown he is more than willing to jump in front of cameras to spruik good news, but is nowhere to be seen when the news is bad."

[ozbob]

IMHO this is a precursor to some significant staff cutbacks to allow some functions to be outsourced, train maintenance? 

Privatisation probably not on the immediate agenda, more likely targeted outsourcing which is facilitated by moving from the GOC environment ...

[SurfRail]

TransLink was a Statutory Authority, look where it got them in the end ...

Ah, but that was a Labor statutory authority and so not kosher.

[SurfRail]

"It will allow them to go down the Victorian path of having franchised services operated by private rail companies," she said.

"As with any outsourcing and privatisation, that means fewer jobs and a focus on profits, not services."

Newsflash Jackie:

1. Which network is better value for money for taxpayers (both long and short distance operations)?

2. Which network has better all-day frequency and peak-hour service levels?

3. Which network has higher patronage per capita?

4. Which network actually integrates with buses and light rail?

5. Which network has an operator which is actually "passenger-focused" and advocates for more services?

COINSLANDA!

[ozbob]

TransLink was a Statutory Authority, look where it got them in the end ...

Ah, but that was a Labor statutory authority and so not kosher.

LOL ... 

[ozbob]

I hope this new zeal for ' fat controllers '  and better services on George extends to BT?   

[ozbob]

Would be interested to know if Queensland Rail staff and unions were informed of this change, prior to the media leak to the CM.

Few comments on blogs suggests they might not have been. 

Had to laugh, Premier Newman complaining yesterday the feds were using the media to inform eg. Gonski funding, but they do they same themselves.

Polyticks in Oz is a mess really. 

[ozbob]

ABC News --> Transport Minister turns Q-R into statutory authority

[somebody]

TransLink was a Statutory Authority, look where it got them in the end ...

Read the Act.  That was about making sure they didn't do anything that the politicians didn't like while having the appearance of independence.

[HappyTrainGuy]

IMHO this is a precursor to some significant staff cutbacks to allow some functions to be outsourced, train maintenance?

Staff cut backs certainly will not be in the maintenance sector. That's for sure! Outsourcing down the line...

SR, I know its a quote but this certainly isn't the first step for the railways being privitised. That started nearly a decade ago.

[somebody]

SF?

[HappyTrainGuy]

SF?

SR 

[ozbob]

Sent to all outlets:

16th April 2013

Queensland Rail to be made a statutory authority ...

Greetings,

Queensland Rail to be made a Statutory Authority, [ http://statements.qld.gov.au/Statement/2013/4/15/queensland-rail-to-deliver-better-services ] ostensibly to deliver better services.  A noble aim, but will it be achievable whilst Brisbane City Council runs a cost inefficient bus network that is anti-network?  If Queensland Rail is costly, just think about the  bus network.  Passenger/kilometre costs for bus are actually dearer than rail!  Give you some idea of how inefficient the bus network is in reality and why the TransLink review in principle was right on the money.

TransLink was a Statutory Authority, and looked what happened to them.  Pushed aside and now made into a government 'lapdog', without the authority to run the public transport network in the best interest of all Queenslanders.
Brisbane City Council needs to brought into line.  Unlikely with the present Government.

Now, many have speculated that the real reason for the change with Queensland Rail is to actually expedite further staff cuts and outsourcing.  Perhaps leading to operator franchise.  This would not be articulated publicly of course, just more spin and bluster.

Governments all over are manipulating the public by media with much contempt.  Very sad outcome for politics, not only in Queensland, but Australia.

It is time decent people stood up and said so.

Best wishes
Robert

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

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

http://statements.qld.gov.au/Statement/2013/4/15/queensland-rail-to-deliver-better-services

Media Statements
Minister for Transport and Main Roads
The Honourable Scott Emerson
Monday, April 15, 2013

Queensland Rail to deliver better services

Queensland Rail will be transferred to a statutory authority, allowing for a greater customer focus and delivery of better train services.

Minister for Transport and Main Roads Scott Emerson said the change would allow the Newman Government to further improve performance of the rail network and bring costs under control.

"The Labor Government was warned in 2009 that Queensland Rail was the most expensive passenger network per kilometre in Australia and chose to ignore the problem," Mr Emerson said.

"Transferring it from a government-owned corporation to a statutory authority brings it closer to government, not privatisation.

"We will make the organisation more efficient so we can employ more train crew, deliver better timetables and add more trains to the network."

The former Labor Government, under former Transport Minister and current leader of the opposition Annastacia Palaszczuk left Queensland with a $2 billion company which relies on 80 per cent funding from taxpayers.

Without action, taxpayer funding of Queensland Rail would need to increase from $1.6 billion to $1.9 billion over the next two years.

Making Queensland Rail a statutory authority means staff will come under the same system as Queensland teachers, nurses and other public servants.

"Passengers won't notice any changes and all Queensland Rail staff contracts and benefits will continue," Mr Emerson said.

"Under the Newman Government, Queensland Rail has already made significant improvement in their reliability after hitting three-year lows in the final months under Labor.

"We've also boosted frequency by adding 150 additional weekly services on the Ferny Grove and Gold Coast lines."

Legislation will be introduced to State Parliament this week with the change expected to take place from early May.

[ENDS] 15 April 2013

[ozbob]

From the Queensland Times here!

QR now "closer to government, not closer to privatisation"

QR now "closer to government, not closer to privatisation"
Joel Gould 16th Apr 2013 3:00 AM

IPSWICH West MP Sean Choat has hailed the change of Queensland Rail to a statutory authority as "a great day for Ipswich", but his LNP view is not shared by those on the other side of politics.

The State Government announced yesterday that Queensland Rail (QR) would be transferred from a Government Owned Corporation (GOC) to a statutory authority. Mr Choat said the change would "bring Queensland Rail closer to government, not closer to privatisation".

But Bundamba MP Jo-Ann Miller said that, in light of 21 QR jobs being axed in Ipswich, the Newman government was "paving the way to sell off Queensland Rail".

"Today's changes will make it easier to make further cuts to staff wages and sack more workers making the organisation more attractive to private buyers," she said.

But Mr Choat said QR now received about 80% of its funding from the government and it was "no longer appropriate for Queensland Rail to be a GOC since the previous Labor government sold off the profit-making parts of the business ... including coal and freight interests and vast parts of the Redbank Workshops".

As a former QR employee, Mr Choat said he was "proud of this announcement today and the plans to invest in a new rail maintenance facility at Wulkuraka".

"Ipswich can look forward to a great future in rail and that workers can rest assured that their jobs are safe," he said.

[curator49]

I would have thought that it would be easier to privatise Queensland Rail if it remained a GOC which is, in effect a company, with a single shareholder - the Government. Returning it back as a Statutory Authority places it more directly under Government control whereas as a GOC it is supposed to be independent (overseen by a board) and able to make its own decisions within its budget (not that the Government/Minister didn't intefere in any decisions made or order them to do certain things).

However, making it a Statutory Authority it may allow the Government to "outsource" train services or maintenance without actually selling them?

Also people seem still to be under the misunderstanding that Queensland Rail runs coal trains. They do not. Coal trains in Queensland are owned and operated by a publicly listed company on the Stock Exchange, called Aurizon of which the Queensland Government is a shareholder (I think now holding less than 10%). Queensland Rail AFAIK does not own the whole of the rail network in Queensland. Aurizon owns certain sections used for coal haulage. Queensland Rail has to pay Access Fees to itself for operating on their own track AND also Access Fees if they are operating over track owned by Aurizon.

[ozbob]

Yes Curator49, clearly an outsourcing path ..

Media manipulation continues ...

From the Couriermail 16th April 2013 page 5

Newman shunts QR into service

[ozbob]

From the ABC News click here!

Union 'surprised' about changes to Qld Rail

Union 'surprised' about changes to Qld Rail
By Kim Lyell

The Rail, Tram and Bus Union (RTBU) says it was not consulted about changes to the structure of Queensland Rail (QR).

Transport Minister Scott Emerson will introduce legislation to State Parliament this week to make QR a statutory authority instead of a government-owned corporation.

The change is expected to take place from early next month.

The Opposition has claimed the State Government is clearing the way for privatisation.

RTBU state secretary Owen Doogan says the union will have a team of lawyers assess potential impacts of changes to QR.

Mr Doogan says the union is still assessing how members will be impacted.

"We always understood that this was an option the Government could have but we certainly are very surprised that it was brought up without any indication to us or our members that it was being considered," he said.

"Our view is that this is a structural change which needs detailed examination but we certainly won't be trying to pre-empt what the outcome is until we've got a full analysis by our legal departments."

[SurfRail]

I would have thought that it would be easier to privatise Queensland Rail if it remained a GOC which is, in effect a company, with a single shareholder - the Government. Returning it back as a Statutory Authority places it more directly under Government control whereas as a GOC it is supposed to be independent (overseen by a board) and able to make its own decisions within its budget (not that the Government/Minister didn't intefere in any decisions made or order them to do certain things).

However, making it a Statutory Authority it may allow the Government to "outsource" train services or maintenance without actually selling them?

That's the "privatisation" which it enables and which I have referred to.  You do not want a situation like Tasmania or Victoria where the freight network falls apart because the operator is given long term leases of the below-rail stuff, loses interest and focuses on its interstate operations while the system falls to bits.

If it helps, think of QR in 10 years time as being little more than what the ARTC is now, except with a museum and working steam trains, and with the passenger services operated pursuant to government contract in the same way Surfside runs the buses down my way.

[nathandavid88]

I would have thought that it would be easier to privatise Queensland Rail if it remained a GOC which is, in effect a company, with a single shareholder - the Government. Returning it back as a Statutory Authority places it more directly under Government control whereas as a GOC it is supposed to be independent (overseen by a board) and able to make its own decisions within its budget (not that the Government/Minister didn't intefere in any decisions made or order them to do certain things).

However, making it a Statutory Authority it may allow the Government to "outsource" train services or maintenance without actually selling them?

That's the "privatisation" which it enables and which I have referred to.  You do not want a situation like Tasmania or Victoria where the freight network falls apart because the operator is given long term leases of the below-rail stuff, loses interest and focuses on its interstate operations while the system falls to bits.

If it helps, think of QR in 10 years time as being little more than what the ARTC is now, except with a museum and working steam trains, and with the passenger services operated pursuant to government contract in the same way Surfside runs the buses down my way.

So it basically means that full privatisation of QR as a whole is likely off the table completely, (or if not, the Government has just made that option a lot harder for itself), leaving two options for QR's future:

1). The Government intends to retain QR's operations largely as is (maybe with some operations like maintenance outsourced, but retaining full operation of the fleet) and will attempt to rework QR to become a leaner, more efficient organisation with focuses on both the above and below rail operations.

2). QR's SEQ services are outsourced for operation by a third party, with QR becoming a local equivalent of ARTC (but possibly retaining long distance travel), focusing largely on maintenance and expansion of the network.

Are either of these options really a bad thing? Both have the potential to see, effectively, a more efficient company, be it QR or a third party, operating services (hopefully more services than current, or with the intention of more services when infrastructure upgrades permit) over Government-owned infrastructure. In my mind, we know the status quo is a situation where QR is an inefficient network filled with poor frequency and almost crippling infrastructure limitations, which is also practically in competition with the largest bus operator. While not much can be done about that last point on QR's end, any changes that give even a possibility of real improvement to tackle the other issues should be applauded. Better to try something than to just say "it's all too hard".

Well, that's my two cents...

[ozbob]

LNP are just being too cute.  The Commission of Audit to be released soon.  This is just getting things ready to move forward.

The massive apparent disproportionate operating costs are associated with the large infrastructure maintenance deficit, low return on the long haul passenger trains, and bizarre accounting methods.  E.g. charging self for track access ...

Suburban rail operation costs are actually generally in line with Australian norms, although those norms can be improved at least to the TransPerth level. More focus on value capture will also improve that.

[SurfRail]

Frankly I don't see this as a bad thing, but given the way things are managed in this state it doesn't have a lot of potential to result in meaningful improvement.  The biggest problem with this new arrangement is the increased involvement of politicians in technical and operational matters.

Ideal outcome should be to create a PTA-like organisation which is responsible for all the passenger transport and rail functions in the State, and then a separate body like RMS in NSW which does licensing, rego, compliance, enforcement etc.  The "Queensland Transport Authority" would be responsible for:
- the planning and delivery of all urban mass transit, all subsidised long distance and regional services (rail, air, coach, ferry) and all subsidised school buses - state-wide, no exemptions or exceptions
- rail infrastructure MTCE and management and anything rail-related which doesn't get caught by the national regulator or Aurizon / ARTC / private lines like Weipa
- development of consistent branding and channels of communication
- infrastructure development
- research
- property development in and near transport infrastructure

As far as I can see this effectively combines QR, TransLink Division and any of the other related bits in TMR which need to be dragged along.  Might also help psychologically to put them in a separate building not necessarily in the CBD (ala the Public Transport Centre in Perth, otherwise known as "KGB HQ" or the Lubyanka given its appearance).

One authority plans all subsidised transport and is responsible for contracting it out.  It would effectively own:
- All new buses delivered after a certain point (or have the leases held with QTC and just manage the assets for them) and all buses currently owned or operated by BCC;
- All trains;
- All the Brisbane River transit ferries;
- Any new subsidised regional ferries,

and contract out operations to whoever can deliver a good and cost-effective outcome.  If it would be better to keep the trains in-house, then that would still be possible (like in Perth).

I think we need a position paper or media release on this.  Perhaps I will write one when I have the time.

[SurfRail]

Also think we need to really push the notion of reform and being left behind other conservative administrations, ie:

- Your colleagues in NSW have done this, whassamattayou?

- Your colleagues in Victoria have done most of this, whassamattayou?

- Your colleagues in WA have inherited this and have only improved on it (eg evergreen regional school bus contracts for small family operators as opposed to the big bad ALP method in SA of tendering out all regional school bus operations).

Why are we reinventing everything when better systems have been designed by ideologically suitable people in other jurisdictions?

[ozbob]

Many might have to be forgiven for thinking that the TTA was a move in the direction you are outlining, but what happened?  Political meddling sunk it all.

We are really back to 2006 in a notional sense, a fractured network.  They will need to start all over again.  An intransigent major bus operator, emasculated remnant of a transport authority, and a political process driven by ideological thought bubbles.

Welcome to Queensland ... lol

Be a good idea to put something together ... put it up on the blog ...

[ozbob]

Queensland Parliament Hansard 16th April 2012
http://www.parliament.qld.gov.au/documents/hansard/2013/2013_04_16_DAILY.pdf

Ministerial Statements

Queensland Rail
Hon. SA EMERSON (Indooroopilly—LNP) (Minister for Transport and Main Roads) (9.50 am): The Newman government is committed to improving the affordability, reliability and frequency of Queensland public transport. That is why yesterday's announcement that we will transform Queensland Rail into a statutory authority is so important. It will allow this government to further improve the performance of the rail network, bring costs under control and deliver more services.
Transferring Queensland Rail from a government owned corporation to a statutory authority brings it closer to government, not closer to privatisation. It will allow this government to start to fix the mess left by those opposite—a mess they were repeatedly warned about and a mess that two former transport ministers chose to bury.
Unlike those opposite, we already have a track record of delivering better services. Since we came to government we have delivered 150 additional weekly train services. We have taken peak on-time running from its lowest level in three years during the final months under Labor to the highest in eight years. In our first year we reduced the number of major safety incidents by 10 per cent, compared to the final year under Labor. We will continue the work already underway to make Queensland Rail more efficient so we can employ more train crew, deliver better timetables and add more trains to the network.
Our plan is in stark contrast to those opposite whose record is one of assets sales, the most expensive rail service per kilometre in Australia, falling patronage and 15 per cent fare increases. Just like fares under Labor, the cost of running Queensland Rail has been increasing year after year after year—by about $100 million a year. For taxpayers, it is the most expensive rail network per kilometre in Australia. However, this is not news to the opposition. Labor were warned in 2009 and chose to ignore the problem. They buried the report. Former transport minister Rachel Nolan admitted in the Quarterly Essay that it was all too hard for her. The Leader of the Opposition when she was transport minister was warned about the looming costs as late as 2011. She oversaw increases in the areas of marketing, finance and corporate of between 60 and 120 per cent over just two years.
Then the Leader of the Opposition had the gall to come out in the Queensland Times last week and accuse the government of planning to sell off Queensland Rail which would lead to increased fares she said. How would she know that was the case? That is right, because they sold it off and then increased the fares by 15 per cent every year for five years.
Opposition members interjected.
Madam SPEAKER: Order! Members.
Mr EMERSON: Let me repeat: she knows fares go up when you sell off assets because that is what she did and fares went up every year 15 per cent year after year after year after year. They took the easy way out. They buried their heads in the sand and Queenslanders are paying for it. Under the LNP we are doing the opposite. We are bringing Queensland Rail closer to government, improving reliability, frequency and affordability for Queenslanders.

[ozbob]

Another problem with both GOC, Statutory Authority, or just another Government department, the agency is not able to speak out publicly.

This leads to suppression of real moves to improve things and consequent failure.  For example, QR and its precursors has been arguing for years for the upgrade of the SCL.  They just get pushed back from the bureaucracy and ultimately the politicians.  They are not able to articulate a proper public case for the upgrade.

One of the few shining lights in PT in Oz is the fact the Metro Melbourne staff eg. Andrew Lazala, boss of Metro Trains regularly speaks out.  Ever heard QR speak out critical of the government?   Lazala slammed the Transport Bureaucracy down there recently for the shody signalling work with no redundancy.    Same problem here, ever heard QR speak up?  No, because they can't.  As a statutory authority they continue, like TransLink to be ' lap dogs ' .. to be pushed around at political whim and self grandiose of fat controller wannabees.

Metro, make a bid ....

[HappyTrainGuy]

Another problem with both GOC, Statutory Authority, or just another Government department, the agency is not able to speak out publicly.

This leads to suppression of real moves to improve things and consequent failure.  For example, QR and its precursors has been arguing for years for the upgrade of the SCL.  They just get pushed back from the bureaucracy and ultimately the politicians.  They are not able to articulate a proper public case for the upgrade.

Oh ain't that the bloody truth!

[ozbob]

Interesting interview ...  3 March, 2010

=========

774 ABC Melbourne

Metro CEO explains how they'll double capacity

With Melbourne's population continuing to boom the city's public transport system is under pressure.

Andrew Lazala, boss of Metro Trains, told a parliamentary enquiry yesterday that the company aims to double train patronage by 2020.

He tells Bruce Guthrie how the system will cope with this surge in passenger numbers.

--> http://www.abc.net.au/local/audio/2010/03/03/2835089.htm

[Jonno]

Time to follow Melbourne's successful model.  Learn from the early mistakes. Both Trams and Trains want to double their patronage!!!

[#Metro]

All this restructuring is re-arranging deckchairs on the titanic. Pointless. Passenger focus is a joke. Remember how QR won a customer service award? What a joke! Worst frequency and span on the system. Rapidly heading towards being the worst urban rail system of any developed nation in the developed world.

[ozbob]

Queensland Parliament Hansard
http://www.parliament.qld.gov.au/documents/hansard/2013/2013_04_16_DAILY.pdf

QUEENSLAND RAIL TRANSIT AUTHORITY BILL
Introduction
Hon. SA EMERSON (Indooroopilly—LNP) (Minister for Transport and Main Roads) (12.00 pm): I present a bill for an act to establish the Queensland Rail Transit Authority, and for related purposes. I table the bill and explanatory notes. I nominate the Transport, Housing and Local Government Committee to consider the bill.
Tabled paper: Queensland Rail Transit Authority Bill 2013.
Tabled paper: Queensland Rail Transit Authority Bill 2013, explanatory notes.
The Newman government is taking steps to continue the reform program already underway in Queensland Rail to build a better rail business. Much work has been done over the past 12 months to improve services, efficiency and affordability. An additional 150 services have already been delivered on the Ferny Grove and Gold Coast lines. More work needs to be done if we want to drive down the cost of fares and deliver more services. The Newman government is proposing to change Queensland Rail to a statutory authority. Queensland Rail currently receives about 80 per cent of its funding directly from the government. As the previous government sold off the profit-making parts of the business, it makes no sense for Queensland Rail to continue as a government owned corporation. This change will also bring Queensland Rail closer to government, not closer to privatisation. Queensland Rail will have a greater customer focus and deliver better train services. It will also help make it more efficient. This means Queensland Rail can employ more train crew to deliver better services and add more trains to the network. This is a great state with great opportunity. This change will help us deliver great rail services for Queenslanders. I commend the bill to the House.

[ozbob]

Queensland Parliament Hansard

http://www.parliament.qld.gov.au/documents/hansard/2013/2013_04_30_DAILY.pdf

QUEENSLAND RAIL TRANSIT AUTHORITY BILL

QUEENSLAND RAIL TRANSIT AUTHORITY BILL
Resumed from 16 April (see p. 948).
Second Reading
Hon. SA EMERSON (Indooroopilly—LNP) (Minister for Transport and Main Roads) (12.03 pm): I move—
That the bill be now read a second time.
I want to thank the Transport, Housing and Local Government Committee for its timely consideration of the Queensland Rail Transit Authority Bill 2013. I note that the committee tabled its report on the bill on 26 April 2013. In its report the committee made two recommendations. The committee's first recommendation, that the Queensland Rail Transit Authority Bill 2013 be passed, is welcome and is supported by the government with no reservations. The second recommendation from the committee supports the inclusion of clause 43 in the bill but recommends clarifying the application of clause 43 by including the criterion that the information could be commercially detrimental to the authority. The Queensland government recognises that there may be some benefit in clarifying clause 43 and proposes an alternate amendment to that recommended by the committee, as similar provisions to clause 43 are found in section 41 of the South East Queensland Water (Restructuring) Act 2007 and in section 19 of the South-East Queensland Water (Distribution and Retail Restructuring) Act 2009.
In particular, the government notes the sensitivity of commercial information is not indefinitely uniform. Commercial information is particularly valuable when it relates to the future—to plans not yet implemented or tenders not yet awarded. This is because the benefits attaching to future plans, tenders or processes have not been secured and the benefits are at risk of being usurped by others. After the potential benefits have been secured by contracts, deeds or agreements, the sensitivity or value of commercial information used to secure those agreements is significantly reduced but not always removed. This distinction between ex-ante and ex-post commercial information is evident in a wide range of laws and practices concerning the release of commercial information.
This government also notes that there is already a requirement in the public sector that the government demonstrate that its use of public resources has been effective, economical, efficient and that it complies with all laws and meets community standards of probity and propriety. In particular, the authority will need to comply with its obligations under the Financial Accountability Act 2009 and will be subject to auditing under the Auditor-General Act 2009. However, in light of the committee's comment, the government does wish to amend clause 43 during consideration in detail to include an example when there may be a practical need to remove some commercially sensitive information from the annual report. This should reassure a person reading the bill that the clause will not be used to inappropriately conceal information.
I want to foreshadow that I intend to propose a couple of additional amendments to the bill during the consideration in detail stage of the bill. These amendments have been, or if not will be, circulated in my name. The first amendment will correct a minor word error in clause 9(1)(b). The remaining amendments will ensure that the clause concerning consultation regarding major workplace change—that is, clause 8—in the Rail Industry Award 2010 will apply regardless of any provision in a certified agreement to the contrary and will be treated in the same way as similar provisions in the awards which apply to many other public sector employees such as our nurses and teachers.
Passage of this bill will represent a significant first step in reforming Queensland Rail so that it delivers improved rail services. This is part of the Newman government's plans to make public transport more affordable, reliable and improve the service experience. It also helps to shape a better outcome for industries that use rail services. The Queensland Rail Transit Authority is designed to be
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a body that is flexible, innovative and yet accountable to ensure it delivers on government expectations. The bill ensures that strategic and operational plans of the authority are approved by the responsible ministers. In the short term, rail commuters and industry will see very little change. However, this bill will provide the framework for Queensland Rail to deliver better rail services for Queenslanders. The transfer of employees to the new entity through this bill is done in a way to preserve their remuneration, leave and superannuation. The transferred employees will be subject to the state industrial relations legislation in the same way as many other public sector employees. In the longer term, this change will give the Queensland Rail Transit Authority sufficient ability to adapt to future initiatives and meet the needs of a growing state.
This is an exciting time for Queensland Rail. As members would be aware, we will soon be awarding a contract for 75 new trains for our suburban network. In the coming months we will also see a refurbished Cairns tilt train re-enter service, plus we will continue to lobby both the federal government and opposition for funding for the Cross River Rail project which will deliver new capacity in the inner-city network. As I said in this House earlier this month, this change will allow this government to start to fix the mess left by those opposite. It will allow us to build on our track record, which includes 150 additional weekly train services. We have taken peak on-time running from its lowest level in three years during the final months under Labor to the highest in eight years.
In our first year, we have reduced the number of major safety incidents by 10 per cent compared to the final year under Labor. Under those opposite, the cost of running Queensland Rail had been increasing year after year by $100 million a year. In 2009, they were warned that this was the most expensive rail network per kilometre in Australia. They chose to ignore the problem and buried the report. Just like this great state, Queensland Rail is an organisation with great opportunity. This bill will help Queensland Rail deliver on that opportunity.
Ms TRAD (South Brisbane—ALP) (12.09 pm): I rise to speak to the Queensland Rail Transit Authority Bill 2013. From the outset, let us be clear about what this bill is all about. It is not about making Queensland Rail more efficient, it is not about improving service reliability, it is not about improving on-time running and it is certainly not about fair affordability. What this bill is about is twofold. Firstly, it is to legislatively erase the entitlements and conditions rightfully earned by Queensland Rail workers in good-faith negotiations over many years. In other words, this is another outright attack on Queensland workers by the Newman LNP government. Secondly, this is the legislative instrument that will enable the LNP to realise its plan for Queensland Rail passenger services, as revealed today in the final report authored by Liberal Party mate Peter Costello as follows—
... contestability into the delivery of commuter rail services—
to create—
... maximum competitive tension by breaking the rail system up into separate franchise areas and creating competition for each franchise, as well as allowing competitive benchmarking between franchises.
In other words, this is about privatisation. Those opposite can call it contestability, they can call it outsourcing and franchising, but it all boils down to services, once publicly provided, will now be provided by private entities operating to make a profit. Purely and simply, that is what this bill is about.
This legislation shows this LNP government for what it really is: sneaky, mean, tricky and shameless. They say one thing while they do the opposite. They try to conceal the true intent and extent of their actions. The worst thing is that they treat Queenslanders like mugs—as people who will believe their spin without question.
But this time they have overplayed their hand. This legislation will transfer the staff and assets of the government owned corporation Queensland Rail into a newly established statutory authority, the Queensland Rail Transit Authority—or QRTA—under the direct control of the Minister for Transport and Main Roads. And has he not proven himself to be effective to date! The new Queensland Rail Transit Authority will still have its own board and CEO but will report to the minister through the Department of Transport and Main Roads.
I want to talk firstly about the impacts that this will have on the workers at Queensland Rail. Most importantly, the legislation will transfer Queensland Rail employees from the federal to the state industrial relations system. As employees of the statutory authority rather than a government owned enterprise, they will effectively be public servants. Therefore, we are told that they will have the same rights and protections afforded to Queensland public servants. I am sure that was the comforting line that the minister spoonfed to the party room to make them swallow this legislation. But the reality is
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that, because of changes that the LNP has made to the state industrial relations system, those rights and protections are effectively worthless. And those opposite know it, because they voted for it. So I wonder if, during the LNP party room meeting when the minister told everyone not to worry because Queensland Rail employees will have the same protection as other public servants, any of the LNP backbenchers who represent Queensland Rail workers had the guts to stand up and call the minister out for his sleight of hand? Did the member for Ipswich stand up for the rail workers in his electorate? Did the member for Ipswich West?
Mr Berry: They voted for me. Thank you so much.
Ms TRAD: I think we have the answer from the member for Ipswich. The answer is no, he did not stand up for the rail workers who live in Ipswich. Did the member for Ipswich West stand up for the rail workers in his electorate? He talks so often and waxes lyrical about his work history in the railways and how his old workmates congratulate him on everything the government is doing in Queensland Rail. I wonder if they will all be contacting him to thank him for stripping away their hard-won rights at work.
The decision to strip Queensland Rail employees of their job security was a deliberate and conscious choice made by this government. You can always trust the LNP to create an imbalance—to load the dice, to rort the system and to create an uneven playing field so that workers will always be worse off. Before the last election the Premier told public servants that they had nothing to fear from an LNP government. Public servants now know from experience how much stock they can put in a solemn promise from this Premier and this LNP government. There is much to fear from the Newman government. If you are a public servant, you can be sacked at will—and 14,000 and more know this for a fact—even if you had negotiated an agreement with the government that explicitly prohibits forced redundancies. Section 691C of the Industrial Relations Act 1999 currently provides that relevant industrial instruments have no effect where the following provisions apply—
(a) a contracting provision;
(b) an employment security provision;
(c) an organisational change provision.
The Transport, Housing and Local Government Committee report into the legislation explains that the effect of this provision in the state legislation will override the Queensland Rail enterprise bargaining agreements that were negotiated in good faith. Those EBAs and the provisions within them that relate to job security, contracting out and protecting workers during organisational change will be effectively worthless. So I say to every member: if you vote for this legislation you are, in fact, voting to take away the existing rights of Queensland Rail workers.
The Rail, Tram and Bus Union and the Electrical Trades Union in its submissions to the committee called out this move for what it is. The ETU called the legislation a—
... direct attack of the employment conditions of those employees who will work under the new system—
and—
... a self interested, ideological whim.
In its submission the RTBU said—
This move is simply designed to try remove security and bargained for conditions from our members using the cowardly approach of legislating on high rather than rolling up the sleeves and trying to negotiate change.
I am sure the minister paid little or no heed to those submissions or points of view because they came from unions. In fact, there was no consultation whatsoever regarding this legislation—no consultation with workers, or with Queensland Rail, or with unions. It was some idea dreamed up in Treasury or in the Department of Transport and Main Roads as a way to smooth the path towards the implementation of the Costello report and its ultimate goal, which is to outsource and franchise public transport services. I will talk more about the recommendations of the Costello report as they relate to Queensland Rail later. By driving down wages and stripping out working conditions, the government can make Queensland Rail a more attractive prospect for private operators. That is all this legislation does and nobody should be under any illusions that the minister is being honest when he says that he wants Queensland Rail to stay within government and that this legislation is all about doing that.
In moving on to structural and operational issues for the new authority, I first want to talk about dividends. The minister said when he announced this legislation that as a GOC Queensland Rail was set up to look for profit. But the legislation will still contain provisions that will allow the government to demand a dividend from Queensland Rail to be paid into consolidated revenue. It is just blatantly
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hypocritical to criticise the current GOC structure and the payment of dividends and then continue to keep the dividend option on the table.
I want to mention clause 90 which states that decisions made lawfully under the act by the new authority are not reviewable or able to be challenged by the courts. The Queensland Law Society in its submission was highly critical of this provision. It said—
As a matter of fundamental principle it is inappropriate for any decision-maker to be provided with an unreviewable discretion as this promotes poor internal processes, poor decision-making practices and also provides fertile ground for inappropriate conduct of officials.
In the explanatory notes the provision was justified in the following terms—
Given the complexity and possible need for speedy processes in future stages of the Queensland Rail reform process, it is essential to ensure possible legal proceedings do not unreasonably delay implementation. Delay may mean the State would suffer significant financial detriment. Therefore it is necessary to limit the ability of third parties to unreasonably delay the ongoing restructuring process.
What rubbish! This statement speaks volumes about the government's true intent when it comes to this bill. The LNP want to outsource, franchise and privatise the operations of Queensland Rail and they want it done quickly without any dissent, without any discussion and they do not want anyone to be able to stop them.
Finally, one of the recommendations that the Transport, Housing and Local Government Committee made was in relation to clause 43 which the minister has touched upon earlier. This clause allows the deletion of commercially sensitive material from the QRTA's annual report. I am concerned that this provision may be used to hide information, particularly with respect to the franchising and outsourcing contracts that will be entered into once the Costello report recommendations are implemented. The committee felt that there should be specified criterion for circumstances in which material could be deleted. I see that the minister has made a tiny concession to this suggestion by offering up an example. But simply put, this is not good enough, minister. This is a little pat on the head of your backbench when, in fact, what they wanted was meaningful input.
I want to take a few moments before I conclude to discuss the Transport, Housing and Local Government Committee report in some detail. It is clear from reading the report that the members of the Transport, Housing and Local Government Committee were unimpressed with the legislation and the way the government has one about introducing it and implementing it. The committee criticised the fact that the stated aims of the bill, to improve passenger rail services affordability and reliability, are in no way related to the actual provisions of the bill. The committee said—
The Committee strongly supports the broad aims of the Bill. However, the Committee is of the view that the Explanatory Notes do not clearly define how the strategies outlined in the Bill will accomplish the anticipated improvements in services, efficiency and affordability.
The committee went on to criticise the paucity of information provided and said—
The Committee notes that the broader context of the proposed reform has not been clearly articulated and considers that the contextual information pertaining to the broader reform plans should have been included in the Explanatory Notes. The absence of clearly stated intentions creates opportunities for misunderstanding and misinterpretation.
Perhaps they were not included because the minister had not finished reading the Costello Commission of Audit yet to include them in the actual legislation. Unfortunately, I fear that this is less of an innocent oversight and more of a deliberate ploy to conceal the true intent of this legislation. The fact is that this legislation has been rushed through, as so many other pieces of legislation have been rushed through this House, and the process has been carelessly managed by the minister.
The committee noted in its report that it could not see the need for the urgency of this legislation. It said—
The Committee would suggest that, in future, a Minister provide adequate explanation for the urgency of a Bill to enable the Committee to develop a meaningful understanding of the full objectives of the Bill. The Committee notes that parties impacted by this Bill were not consulted during the development of the Bill.
It appears that the minister is not only treating Queenslanders as mugs but also his backbench. In the rush to get this legislation through, mistakes and omissions were made in the preparation of the explanatory notes. The committee felt this was serious enough to warrant a mention and it said—
The Committee considers that a number of the provisions in the Legislative Standards Act 1992 have not been met in a clear and precise way in the Explanatory Notes (for example, the policy objectives and implementation costs).
The Committee further notes that the Explanatory Notes contain numerous spelling and other errors (for example, the numbering of clauses 105 on page 2 and clauses 89 and 87 on page 3).
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Of course, we know the real reason why this bill is so urgent. Firstly, the QR Passenger Pty Ltd Traincrew Union Collective Workplace Agreement 2009 expires on 1 June and before negotiations conclude the minister and the LNP wanted these 1,200 or so workers to come into the state IR system which the government has turned into an uneven playing field. Secondly, the government wants this bill passed and Queensland Rail restructured so that it can start implementing the recommendations of the Costello report to outsource passenger rail services straight away in the June budget. That will mean outsourcing and franchising could start sooner than people think.
Let us now turn to the Costello Commission of Audit and see what the report actually says about public transport services in a bit more detail, particularly those provided by Queensland Rail in this state. Recommendations 15 to 19 relate to public transport services. Recommendation 15 relates to the South-East Queensland urban passenger services and recommends—
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.
The government has enthusiastically accepted that recommendation. Recommendation 16 relates to long distance passenger rail services and recommends—
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 rollingstock required to provide the services in a State Government entity, and leasing this to the franchisee for the term of the contract.
Recommendation 17 relates to bus services and I will talk more about that another time. Suffice it to say that it has been accepted and it recommends further route cuts and more franchising—and didn't the minister handle that well earlier this year? More of what we have already seen from this minister and assistant minister and their botched bus review, no doubt.
Recommendation 18 relates to the Mount Isa freight line and recommends—
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.
The government has accepted that recommendation in part. Recommendation 19 relates to maintenance of the rail network and recommends—
Queensland Rail remain the owner and operator of the regional rail network, but with the maintenance task to be outsourced through a competitive tendering process.
The government has accepted that recommendation and will move forward with the process of outsourcing rail maintenance in regional areas, just like they did with RoadTek.
Whether you call it contestability, privatisation, franchising, right sizing, outsourcing, assets management or whatever misnomer is fashionable on any one day, it all means the same thing: passenger rail services and rail maintenance in Queensland will be provided by private companies for a profit and not as a public service. That is something that I believe Queenslanders do not want. It is not what Queenslanders voted for last year. We have all seen the outcome of public transport franchising in Melbourne. I table an article from the Age entitled 'Metro Trains rated Australia's worst'. The article states that Melbourne's private train operator, Metro Trains, performed the worst in the 2011 survey of train passengers across the country. According to the article, Metro came last in all surveyed categories, which included reliability and performance, comfort of trains, safety, timetables and scheduling and signage and announcements.
Tabled paper: Copy of article from the Age titled 'Metro Trains rated Australia's worst' dated 15 June 2011, relating to a customer survey of metro trains.
The private sector is not always better or more efficient. The franchising of Melbourne's trains and trams is proof of that. The minister had better ensure that his Segway is a lot faster than 12 kilometres an hour to escape the anger of Queensland Rail workers and commuters when this Costello experiment of franchising fails here in Queensland as it has in Victoria. The opposition will be opposing this legislation and we will continue to oppose any attempts to franchise, privatise or outsource the passenger rail network.
Mr HOBBS (Warrego—LNP) (12.30 pm): Today I am pleased to rise to talk in the debate on the Queensland Rail Transit Authority Bill. I thank the minister for his consideration of the committee's report and the changes that will be put in place. The assembly referred the Queensland Rail Transit Authority Bill to the Transport, Housing and Local Government Committee on 16 April and the committee was required to report back on 26 April. The committee held a public briefing with the
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Department of Transport and Main Roads on Thursday, 18 April. The committee invited submissions by emailing 529 subscribers on the Transport, Housing and Local Government Committee's email subscriber list and emailed a further eight identified stakeholders on 17 April. The committee received three submissions. The committee did not hold a public hearing due to the short time frame for examination of this bill. The transcripts of the public briefing and the submissions are available on the committee's website for those people who want more details.
It is important that we understand the aims of this bill. This morning we have heard lots of emotional words spoken, but at the end the day we need to understand the aims of this bill. The bill seeks to restructure Queensland Rail by establishing a new statutory authority, the Queensland Rail Transit Authority. The QRTA will be unincorporated. It will have a board that will prepare both strategic and operational plans for ministerial approval. The bill seeks to transfer Queensland's rail share to the QRTA with the effect of making Queensland Rail a subsidiary of the new authority so they form, in effect, a Queensland rail group. Queensland Rail Ltd will no longer be a GOC. Queensland Rail Ltd will retain its assets and liabilities, as well as its relevant licences, accreditations, authorisations and so on. Importantly, in relation to service delivery, Queensland Rail Ltd will continue to provide rail services in practical terms. There will be a service agreement whereby QRTA provides strategic direction and staff to Queensland Rail for the continuation of rail services.
In transferring Queensland Rail's employees and enterprise agreements to the QRTA, the bill provides protection for employee entitlements and clarifies the application of certain provisions of the Industrial Relations Act 1999 on the QRTA and its employees. The transfer of employees will mean the negotiations for replacement train crew agreements, which would normally expire on 30 June 2013, will be conducted under the Industrial Relations Act 1999. The bill provides for future transfers of assets, liabilities and instruments such as licences, authorities and contracts through transfer notices over time as rail reform progresses. Similar provisions for restructure, directions and transfer notices have been used in other legislation, including, for example, the Infrastructure Investment (Asset Restructuring and Disposal) Act 2009. Generally, those are the intentions or the aims of the bill.
The Newman government is taking steps to continue the reform program already underway in Queensland Rail to build a better rail business. We have to build a better rail business. We cannot continue to do things the way we have in the past. We have to learn from the mistakes of the past. We have to look to the future to improve and make things better for commuters.
A government member: A concept that is foreign to those opposite.
Mr HOBBS: That is true; it is foreign to those opposite. Over the past 12 months, much work has been done to improve services, efficiency and affordability, but more work needs to be done if we want to drive down the cost of fares and deliver more services. The Newman government is proposing to change Queensland's rail to a statutory authority as the previous government sold off the profit-making parts of the business. It makes no sense for Queensland Rail to continue as a GOC. The change will also bring Queensland Rail closer to government; not closer to privatisation, but closer to government. Queensland Rail will have a greater customer focus and will deliver better train services. This will also help make it more efficient, which means that Queensland Rail can employ more train crews to deliver better services and add more trains to the network. That is particularly important. We really need to be able to improve those services.
The committee strongly supports the broad aims of the bill. However, as mentioned before, the committee is of the view that the explanatory notes do not clearly define how the strategies outlined in the bill will accomplish the anticipated improvements in services, efficiency and affordability. Of course, without that detail, the absence of clearly stated intentions creates opportunities for misunderstanding, misinterpretation and deliberate misinterpretation. It is very important that we understand that we can do better with these things. The intention of the bill is quite clear: we have to improve the services that we provide to the people of this state.
The three submissions made to this inquiry expressed their strong concern and dissatisfaction with the lack of consultation and the short consultation and reporting time frames for the bill. There will always be issues such as that if there is a short time frame. We need to understand that process and accept it.
One issue raised was the transfer from the federal industrial relations system to the state system. Members opposite are getting quite excited about this, but at the end of the day this system can be done and has been done—and will be done this time—with the best interests of the employees at heart. Clause 71 of the bill will result in the transfer of employees from Queensland Rail
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Ltd to the QRTA. The Industrial Relations Act 1999 will then apply to the employees. Existing agreements and contracts will transfer with the employees, but they will be subject to the Industrial Relations Act 1999 as if they were made under that act. The industrial relations changes arising from the transfer of employees and their agreement with the QRTA will not impact on remuneration, leave or superannuation. As with other public sector employees like nurses, teachers and firefighters, the transfer of Queensland Rail employees will come under the jurisdiction of the Industrial Relations Act 1999 regarding dispute resolution processes, consultation requirements for the development of certificated agreements, contracting, organisational change and opportunities for employment security. The Queensland Industrial Relations Act 1999 already generally applies to Queensland public sector employees. We have thousands and thousands of employees who work under this system at the present moment.
The committee notes that, upon the commencement of this legislation, Queensland Rail Ltd employees will be transferred from being employees of a government owned corporation under the auspices of the Commonwealth industrial relations system to being Queensland government employees subject to Queensland industrial relations legislation. The committee understands that that will have some minor impact on employment conditions, but the committee is of the view that the proposed changes are acceptable, as employees of the Queensland Rail Transit Authority will be afforded the same rights and conditions as other Queensland public sector employees, such as nurses and firefighters as I mentioned before.
At the public briefing, questions were asked of various people about how the commercial imperatives and the community service obligations of the QRTA will marry up. Staff of the Department of Transport and Main Roads advised that, while generally the expectation is that the authority will perform its functions commercially, the bill recognises that improved services will require the authority to have community service obligations that will not be able to be achieved commercially. Those community service obligations will be clearly defined and costed, and the authority will be transparently accountable for achieving them through the operational plan. That approach will help bring costs under control, once again while improving the services. The committee is aware that it is not uncommon for a statutory authority to perform its functions commercially while, at the same time, being responsible for delivering community service obligations and, therefore, the committee had no objections to that proposal.
Clause 43 is the clause the minister mentioned he is going to change by introducing an amendment. It provides that the QRTA board can make an application to the responsible minister that they delete a matter that is of a commercially sensitive nature from the copies of the annual report that are made public. At the public briefing the department was asked why the QRTA would need to delete commercially sensitive information from its annual report when the statutory authority becomes a public entity. The question was taken on notice. The Department of Transport and Main Roads subsequently advised that it involved the removal of commercially sensitive material upon the minister's approval that may be made public as part of an annual report process. An example was information on contract negotiations for the procurement of goods and services included in the statutory authority's operating plan. In the minister's amendments he has made it quite clear by saying—
Example of a matter that might be deleted—
pricing information given to the Authority in response to an unfinished tender process
It is quite reasonable that commercially sensitive information should be taken out of the annual report. The committee indicated that this should be included in the bill. I believe that the minister's amendment will be sufficient to make that clear.
The other issue that was talked about was that the dividend to be paid by the Queensland Rail Transit Authority should be directed towards providing infrastructure and service maintenance or improvements. The Department of Transport and Main Roads advised that the dividends would be paid directly into the state's Consolidated Fund and the QRTA would be able to request funding through the CBRC process to enhance the network. It further advised that it is no different to what happens in the current process. That is how it operates now. They currently do not have a claim over the dividend through the preparation of their strategic and operational plans. We can then look to see how we reinvest that money into improving services. Here again we are talking about improved services and better services for the commuters of Queenslanders. The committee noted that the approach outlined in the bill with regard to dividend payments and the CBRC process for funding requests is in line with existing arrangements. The committee had no concerns with this approach.
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This bill will make some improvements. It is a progression in terms of what had to happen. The previous government sold off the rest of QR. It is basically inevitable that the transit authority comes back into—
Ms Trad interjected.
Mr HOBBS: Let us not go into what you did with the money out of QR and what happened to that.
Ms Trad interjected.
Mr DEPUTY SPEAKER (Dr Robinson): Order! The member for South Brisbane will cease interjecting.
Mr HOBBS: What did you do with the money when you sold it?
Mr Johnson: Burnt it.
Mr HOBBS: I was going to say something else, but that is a way of explaining it. I commend the bill to the House.
Mr MINNIKIN (Chatsworth—LNP) (12.42 pm): I rise in support of the Queensland Rail Transit Authority Bill 2013. The Newman government is taking steps to continue the reform program already underway in Queensland Rail to build a better rail business. The community is becoming increasingly aware of the taxpayer funded investment being made in rail in Queensland and understandably expectations are growing in the areas of: improving service quality—improved reliability, increased frequency and simplification of the timetables and scheduling; maintaining fare affordability; and improving service experience—real-time information, enhanced comfort, cleaner trains and stations and enhanced safety and security.
Current fiscal challenges whereby budget funds are limited, combined with the requirement to substantially increase capital investment in new transport infrastructure, is very self-evident, meaning the Newman government must explore new ways to deliver enhanced customer service levels, look for new innovations and provide greater cost efficiency. This includes reviewing the capability within the current Queensland Rail organisational structure to drive cost reduction initiatives through improved productivity, efficiency and effectiveness.
Those Labor members opposite may be saying that change is not required. They try to convince people that everything is tickety-boo over there in Queensland Rail. Clearly this is not the case. But there is no sense trying to convince us if they cannot even convince members of their own party. One person, for example, who is not convinced is the Labor Party councillor for Wynnum Manly, Peter Cumming. Councillor Cumming is a pretty switched on chap so they should listen to what he has to say. For example, he wrote to Labor Party members in late 2011 saying—
I am a realist and expect Labor to lose this state election.
He was right. In fact, looking across the chamber right now he was very right. Back on 6 November 2012 Councillor Cumming also wrote to me, in my capacity as the Assistant Minister for Public Transport, about a Queensland Rail matter. This is what he stated—
It confirms my view what an utterly useless organisation Queensland Rail is and the fact that it has been getting worse over the years.
That is from the Labor councillor from Wynnum Manly. Let me repeat the last bit: 'getting worse over the years'. Here was an elected member of the Australian Labor Party who was voicing the utter frustration of thousands of rail passengers who are fed up with the performance of the Labor state government and the then minister for transport now Leader of the Opposition. For years they suffered as trains continually ran late or were cancelled. For the best part of 20 years those opposite—in fact, one member opposite—and their former failed comrades were responsible for running Queensland Rail.
Let me clearly state that I do not believe these views were a reflection on the staff of Queensland Rail. An organisational culture and performance is only as good as those at the top. In my career I have worked in both the private and public sector. It has been my experience that some of the finest employees I have had the privilege of working with have come from the public sector. If they are given the scope and flexibility to shine they are capable of fantastic things.
As an example, several years ago I had the honour to lead a team from local government that won the Australian customer service national award, beating the best service providers from around the country from the private sector.
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Mr Dowling: Go Redlands.
Mr MINNIKIN: Indeed, Redland shire council. Customer service is dependent upon attitude not whether one works for an ASX 200 private enterprise company. It is about the right corporate culture regardless of size or sector. Money and resources cannot buy a winning corporate attitude. It is a permanent state of mind to put the customer first. There is the famous customer service mantra I would always use with my own staff—'If you are not serving a customer you are serving someone that is.'
I have spoken to a lot of Queensland Rail staff since becoming the Assistant Minister for Public Transport. I have to say that the vast majority of them are as committed to providing quality rail services for Queenslanders as the Newman government. These staff members, the travelling public, the councillor for Wynnum Manly and Queensland Rail as a whole have been let down previously by a distinct lack of leadership.
That lack of leadership started right at the top. We only need to look as far as the opposition benches to the Leader of the Opposition. As I continually state in this hallowed chamber, how can those opposite formerly run a large organisation like Queensland Rail when they lack cutting edge business experience in the real world? I am pleased to say that things have changed considerably since March 2012. We now have a minister who is focused on improving the affordability, reliability and frequency of public transport. Minister Emerson is determined to get Queensland Rail back on track in every sense of the term.
Additionally, we have the Queensland Rail board, led by the chairman, Mr Glen Dawe, which has turned Queensland Rail back into a railway operation that is focused on delivering better rail services for all Queenslanders. If people want to see the power of proper leadership they do not have to look any further than Queensland Rail. Like any organisation undergoing cultural change there will be teething problems. But there is a steely determination to turn the performance of Queensland Rail around. This bill will facilitate that task.
We now have a workforce that is focused on getting the train network running on time. The result is that we have now turned record low rail reliability in the dying days of the previous Labor government into results that many rail providers around the world could only dream of. Don't get me wrong, we still have instances of trains running late, but what impresses me is that there is an organisational desire to do better and look for continuous improvement. That is why this bill is so important. It gives Queensland Rail as an organisation the tools it needs to make things better on its journey towards continuous improvement. It removes the distractions that come from being a government owned corporation, leaving it to focus on improving services for Queenslanders. Some of the significant benefits we will see because of this change include improved operation and management of rail services, more efficient delivery of rail services and, importantly, enhanced customer service for rail passengers.
With Queensland Rail currently receiving around 80 per cent of its funding directly from the government, it needs to be more directly accountable to government to improve operations and bring costs under control. It is important to note that the bill includes transitional provisions to ensure that the rail business is able to continue to operate and service the community and industry on commencement. This includes provision for transferring the board, chief executive and senior executive. The team has implemented a number of changes to improve the performance of Queensland Rail over the past 12 months, and this will allow these important actions to continue.
I mentioned previously that we have many great people working in Queensland Rail, so it is very important for us to ensure that the remuneration and leave entitlements et cetera are not impacted by this change. I am convinced that this bill does this. This government is totally committed in its belief about Queensland being a great state with great opportunities. This goes beyond creating opportunities for our kids or the opportunity for business to flourish. This change means that Queensland Rail will have the opportunity to deliver better rail services for all Queenslanders. I commend the Queensland Rail Transit Authority Bill to the House.
Mr GRIMWADE (Morayfield—LNP) (12.50 pm): I rise to contribute to the debate on the Queensland Rail Transit Authority Bill 2013. The Newman government is committed to making public transport more affordable, reliable and frequent. Fundamentally, what this bill aims to do is transfer Queensland Rail to a statutory authority and allow Queensland Rail to focus on passengers rather than just profits. Public transport, and more so train travel, is an issue of high importance to my community in Morayfield. Under the previous government we witnessed fares go through the roof—
30 Apr 2013 Queensland Rail Transit Authority Bill 1259
15 per cent increases year in and year out—while at the same time patronage fell. We saw reliability slump to all-time lows through signalling faults and poorly maintained networks.
Before I was elected to this place I spent a lot of my time at train stations talking with commuters about what they wanted to see happen with Queensland Rail. The discussions always centred around the high fares and the reliability of the network. During my time as a candidate, I was very honoured to have the shadow minister, now thankfully the Minister for Transport and Main Roads, the Hon. Scott Emerson, accompany me on a platform visit. We spoke to many, many commuters that day in relation to what they wanted to see happen with Queensland Rail, what they thought about public transport fares and what they thought about reliability, frequency and a whole bunch of different issues. It was really great to have that opportunity, and I thank the minister for coming out and hearing firsthand what our commuters in our local communities actually want to do. We cannot continue to do business as usual—having fares going through the roof and having reliability issues. That is the way the Labor Party want to do things in this place, but people elected us to make changes and to deliver better services. I think this legislation will ultimately allow the government to do that.
After one year in government we have already been working hard to address a lot of those issues in relation to affordability and reliability. I want to take time now to tell honourable members in this House about some of the initiatives that we have introduced that have benefited commuters. They include our commitment of free trips after nine journeys. This has been a big commitment to make public transport more affordable for our local communities. To give an example, a mum or dad catching a train Monday to Friday going to and from work or a university student catching the train Monday to Friday would take 10 trips—that is, five there and five back. With our initiative of free trips after nine journeys, the Friday trip home is free. It costs about $8 to go one way in peak time from the Burpengary Railway Station in my electorate, for example, to the city or vice versa. So that measure alone has actually saved commuters in my electorate, people going to and from work each day, around $400 a year. That is quite a big cost-of-living saving when people are already doing it tough.
The other initiative is that we have halved Labor's fare increases. I mentioned before about the 15 per cent fare increases year in and year out. People cannot sustain 15 per cent increases to public transport fares when their cost of living is rising. We have managed to halve those increases which obviously makes public transport more affordable again.
An issue my local media has been highlighting is the reliability of the Caboolture line, which commuters in my electorate use. Recently I asked a question on notice to the minister to seek assurances that everything was being done to improve the reliability on the Caboolture line. The minister's response to my question highlighted—
Under the previous Labor Government we saw on time running on the Caboolture line drop to 76.93% ... in the third quarter of 2011/12.
To address reliability problems, last year Queensland Rail established the On Time Running Taskforce, aimed at identifying and implementing initiatives to improve reliability. In October 2012, the Taskforce undertook a comprehensive investigation of the Caboolture line and Queensland Rail is subsequently implementing an action plan to boost reliability of the line.
The minister went on to further advise that 'a number of initiatives have already been completed as a result of the action plan and subsequently the Caboolture line performance has significantly improved' since we have been in government and that, in the second quarter of 2012-13, 87.94 per cent of services actually ran on time. Again, this is pleasing news for my community because we can see from the detailed data that the reliability of our trains is already on the mend. The minister's answer to my question on notice concluded by saying—
Queensland Rail also has an ongoing maintenance programme to ensure customers have a rail network they can rely on. Over the coming months Queensland Rail will be undertaking an important signalling upgrade. The upgrade forms part of an $11.5 million signalling improvement project, to replace essential signalling hardware across the network.
This signalling upgrade will continue to boost the reliability of the Caboolture line and improve the daily commute for customers.
Transferring Queensland Rail from its current structure to a statutory authority will, in effect, bring Queensland Rail closer to government and not privatisation. The Labor Party want to make this debate all about privatisation. They want to make it about industrial relations. Instead, it needs to be about delivering better services for Queenslanders, because it is better services that Queenslanders want delivered, and that is what this bill aims to do.
This is a good opportunity for both the state and Queensland Rail. I will highlight some of the future development of assets and services that this government is putting into Queensland Rail. I think this is important for the debate. We are going to see some new generation rolling stock—75 new
1260 Queensland Rail Transit Authority Bill 30 Apr 2013
six-car trains. These will be delivered as a public-private partnership. The government is down to the final two bidders of Bombardier and the AdvanceRail consortium. This announcement will also include new maintenance facilities to be built, and the expected contract will be awarded later this year. We also have the Cairns tilt train.
Mr Costigan: Great service.
Mr GRIMWADE: I take the interjection from the member for Whitsundays. It is a great service because people all the way up the eastern seaboard rely on this service. As I detailed in this place in the last sitting, being someone who has done a fair bit of travel on long distance trains as part of a government review, I can also say that some of these announcements and things we are doing will benefit all of those people who use long distance rail from here to Cairns. We are refurbishing two existing tilt trains and a third train is being built. Members will remember when we talk about building trains or buying trains that the previous government botched that project and ordered trains without seats! Members will remember that.
The Moreton Bay Rail Link is another project that this government will be undertaking in relation to building infrastructure and new stations. It is a $1.47 billion project which is jointly funded by the federal, state and local governments. It does not actually come into my electorate, I acknowledge that. But it is part of the Moreton Bay area which my electorate fits into. The government is down to the two final bidders to get that project underway. We also have new stations at Kallangur, Murrumba Downs, Mango Hill, Mango Hill East, Rothwell and Kippa-Ring. This is new infrastructure—new stations.
Mr Crandon: Great place Kippa-Ring.
Mr GRIMWADE: The successful tenderer will be announced in the coming months. I take the interjection that Kippa-Ring is a great place, because I grew up in Kippa-Ring. I spent the best part of about 20 years living in and around that region. Being a Kippa-Ring State School boy myself, I can attest to it being a great place. For the 20 years I was growing up in Kippa-Ring, I remember that the previous government promised a Redcliffe rail link. It was one of those projects that was promised—'We will finally get a rail link to Redcliffe. We will take you into the city. This is what we will do.' For 20 years it was promised. I was talking to my parents last week at Charleville. They were driving around in their caravan and I came across them while I was out there reviewing the long distance passenger rail. They said to me, 'Can you believe it? The Newman government is finally delivering the rail link to Moreton Bay and to Redcliffe?' It is interesting that a government like ours can deliver on our election commitments and deliver for the people in Queensland.
Mr Berry: On time.
Mr GRIMWADE: On time—I take the interjection. Contrary to what the opposition may say, Queensland Rail will need more drivers. Obviously, if we are going to build this infrastructure and have more trains and more platforms coming on, we are going to need more drivers, we are going to need more guards and we are going to need more front-line services to deliver on these initiatives. More people will be coming under the Queensland Rail banner. We simply cannot have more trains and more platforms without having more staff.
Sitting suspended from 1.00 pm to 2.30 pm.

[Fares_Fair]

An issue my local media has been highlighting is the reliability of the Caboolture line, which commuters in my electorate use. Recently I asked a question on notice to the minister to seek assurances that everything was being done to improve the reliability on the Caboolture line. The minister's response to my question highlighted—
Under the previous Labor Government we saw on time running on the Caboolture line drop to 76.93% ... in the third quarter of 2011/12.
To address reliability problems, last year Queensland Rail established the On Time Running Taskforce, aimed at identifying and implementing initiatives to improve reliability. In October 2012, the Taskforce undertook a comprehensive investigation of the Caboolture line and Queensland Rail is subsequently implementing an action plan to boost reliability of the line.
The minister went on to further advise that 'a number of initiatives have already been completed as a result of the action plan and subsequently the Caboolture line performance has significantly improved' since we have been in government and that, in the second quarter of 2012-13, 87.94 per cent of services actually ran on time. Again, this is pleasing news for my community because we can see from the detailed data that the reliability of our trains is already on the mend. The minister's answer to my question on notice concluded by saying—
Queensland Rail also has an ongoing maintenance programme to ensure customers have a rail network they can rely on. Over the coming months Queensland Rail will be undertaking an important signalling upgrade. The upgrade forms part of an $11.5 million signalling improvement project, to replace essential signalling hardware across the network.
This signalling upgrade will continue to boost the reliability of the Caboolture line and improve the daily commute for customers.

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http://statements.qld.gov.au/Statement/2013/4/30/new-future-for-queensland-rail

Statement  Minister for Transport and Main Roads

New future for Queensland Rail

Tuesday, 30 April 2013 16:30

State Parliament today passed a bill establishing the Queensland Rail Transit Authority.

Transport and Main Roads Minister Scott Emerson said the bill would transfer Queensland Rail from a government-owned corporation to a statutory authority, bringing it closer to Government.

"This bill and the recommendations of the Commission of Audit will allow the Newman Government to continue to deliver better rail services in Queensland," Mr Emerson said.

"The Government will continue to make the organisation more efficient so we can employ more train crew, deliver better timetables, bring fares under control and add more trains to the network.

"We will continue to look for ways to encourage greater innovation and efficiency as we position Queensland Rail for the future."

Mr Emerson said the Commission of Audit today recommended the use of contestability to measure the outcomes for the reform against the private sector.

"These recommendations are being considered, but I want Queensland Rail to reach a position where it delivers better and more efficient services than the private sector," he said.

"Bringing Queensland Rail closer to government today will be the next step in that reform process.

"Making Queensland Rail a statutory authority also means staff will come under the same system as Queensland teachers, nurses and other public servants.

"Passengers won't notice any changes and all Queensland Rail staff contracts and benefits will continue."

The Labor Government was warned in 2009 that Queensland Rail was the most expensive passenger network per kilometre in Australia and chose to ignore the problem.

Without action, taxpayer funding of Queensland Rail would need to increase from $1.6 billion to $1.9 billion over the next two years

[ozbob]

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From the Couriermail 25th May 2013 page 35