Mixed response to Tassie rail freight rescue package

The Federal Government has offered a $78m conditional rescue package to keep rail freight alive in Tasmania. The three-way rescue package between the federal and Tasmanian governments and Pacific National, should keep rail freight running on the Hobart-Launceston-Burnie line for "at least the next 10 years", federal transport minister Warren Truss said. Pacific National, which has threatened to cease Tasmanian intermodal services, has described the package as "a positive step" but the State Government is furious, claiming that the offer simply rips cash away from federal road commitments in Tasmania. The package comes with the following stipulations, that: &#8226 Pacific National pass ownership of the Tasmanian network to the state government, which can then invite the Australian Rail Track Corporation (ARTC) to manage the line for a fee &#8226 The Tasmanian Government establish an open access regime to be put in place no later than June 30, 2006 &#8226 Pacific National commit to provide intermodal freight service for 10 years and commit at least $38m for rollingstock and locomotive improvements &#8226 The Tasmanian Government fund track maintenance costs at $4m a year, plus any ARTC fees and &#8226 In return, the Federal Government will commit $78m for capital works to upgrade the network over the next 10 years. The Federal Government will also consider contributions of $3.75m for an expanded intermodal terminal at Bell Bay and up to $5m for a proposed intermodal terminal at Brighton, north of Hobart. "Both facilities would improve the train loading and unloading efficiencies and potentially allow the Tasmanian Government, the owner of the land on which the tracks sits, to consider the future use of the railway corridor between Granton and Hobart," Mr Truss said. The Government had devised "a realistic and coordinated plan" to make rail more attractive to commercial users and check transport costs in an island state where freight charges are a sensitive aspect of doing business, he said. "If the Tasmanian Government or Pacific National fail to meet their obligations, the remaining Australian Government assistance will cease," Mr Truss said. Pacific National Tasmania general manager Neil MacKinnon said the proposal showed the Government was serious about addressing the lack of certainty on long-term track investment. "We will need to spend some time working through the detail of the proposal, but this is a good first step," Mr MacKinnon said. "Now we look forward to a response from the Tasmanian Government and we are hopeful of an answer before the Pacific National board meeting [today, Tuesday, December 13&#93." Tasmanian infrastructure minister Bryan Green said the state was being "dudded" by the Commonwealth because it was not offering any extra money. The package was a disaster for the state’s roads, Mr Green said. "The Federal Government is simply ripping off $78m from Tasmanian roads with one hand to give it to rail with the other," he said. "This is money the Tasmanian Government was ready to spend on the northern approaches to Hobart to make the Midland Highway safer." The deal was "the height of deception" and one that had not been mentioned at any of the high level government negotiations to date, Mr Green said.

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