QR coal sell-off strategy flawed, says QRC

By Rob McKay

The council said the state's $40bn a year coal industry should not be dismissed out of hand by the Queensland Government as a potential key investor in the planned privatisation of QR’s coal rail business.
QRC chief executive Michael Roche insisted the state government was risking long-term industry growth and the future royalties to taxpayers by proposing a share float of the above and below-rail operator's coal business in its current form.
Roche referred to last year's privatisation announcement when the state government said:
“Trains on systems such as the Goonyella, Newlands, Blackwater and Moura systems would be sold separately to (the) sale of infrastructure such as train lines and ports.
“This will enhance competition in this important sector, which will get the best result for coal companies and the Queensland taxpayer.”
Roche questioned whether there had been a policy reversal on a commitment to “get the best outcome for taxpayers and the competitiveness of Queensland’s largest export industry by selling the coal trains and coal track businesses separately”.
He insisted that locking out industry would reduce QR's sale value and pointed out that in other states, contestable above-rail operations were separate from the natural monopoly of the below-rail elements.
The council has been highly critical of the state government's plans since they were announced last June.

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