WA Farmers call for leadership over rail funding

The president of the Western Australian Farmers Federation this morning urged both the State and Federal Governments to work together to solve the state's grain rail infrastructure woes.

In an interview with Lloyd's List DCN , Mike Norton said the newly elected WA Government and transport minister Simon O'Brien needed to show leadership in finding the proper funding to secure the state's grain rail network.

Mr Norton hoped the situation would not disintegrate into a political fight between the Federal Labor Government and the State Coalition Government.

“We understand that the (Federal) Treasury has already put the money aside – what the Barnett Government needs to do is get back there as soon as possible and make sure it is set aside,” he said.

“While we had two Labor Governments talking to one another, we were pretty safe – I'm not to sure how safe we are now.”

A spokesman from Mr O'Brien's office said the minister was still in discussions with WestNet Rail, the network owner and a subsidiary of embattled infrastructure fund, Babcock and Brown Infrastructure.

He said the minister was still sorting the issue out since coming into the portfolio and was keeping his options open.

No plans had yet been made to seek funding from the Federal Government, he said.

The issue of the state's grain infrastructure came to light yesterday, when WA National Party leader Brendon Grylls backed calls to save the rail network.

He said the WA Government was already behind former state infrastructure minister Alannah MacTiernan's road and rail rescue package plan to keep the system in working order.

The problem with the system lay in the complex relationship between the Government and the owners of the line, he said.

Mr Norton believed an exit clause in the contract between WestNet and the state, which said the government would be obliged to buy back underperforming rail lines, was at the root of the problem.

“We're in a state now where WestNet has the ability, as per the contract, to hand some of these underperforming lines back and that's when the industry and the government comes together and looks at ways it can fix these underperforming lines,” he said.

Mr Norton predicted the problems facing some of the underperforming run down lines would not affect this year's harvest, but if the government did not act now, problems would arise in the next two to three years.

Queensland Rail now owns the rolling stock.