Single rail regulator some way off: NTC

While the argument in favour of a single, national rail regulator was strong, the proposal would only fly if a persuasive case existed, National Transport Commission chief executive Nick Dimopoulos told the Rail Safety 2007 conference this week. Mr Dimopoulos said the development of a single national regulator &#8211 to replace the seven regulators in place now &#8211 would require a strong commitment from governments and a significant cost-benefit outcome. He said the case for a single regulator appeared &#8220marginal at best&#8221. &#8220A key concern is that multiple regulators create excessive transaction costs to do business,&#8221 he said. &#8220Of course, this problem affects only a small number of rail transport operators, who operate in more than one State or Territory. &#8220All the evidence presented to the NTC to date suggests this is not a major business impediment. In fact, the rail safety reform promises to increase coordination between regulators and reduce costs. &#8220At present, there is a continuing drive for national consistency and, therefore, no compelling case for change,&#8221 he said, adding, &#8220the door isn’t closed.&#8221 &#8220Indeed it has been explicitly left open &#8211 ministers have agreed to reconsider the issue in late 2008,&#8221 he said. A nationally consistent legislative framework may be a precursor to wide ranging institutional reform, Mr Dimopoulos said. The NTC would continue to pursue improvements in road reform in tandem with rail reform, Mr Dimopoulos told delegates from the rail sector. &#8220As outlined in our Twice The Task report (February 2006), we believe road and rail modes are more complementary than substitutes and contestable freight is relatively marginal,&#8221 he said. &#8220So let’s be blunt about this. We need more flexible regulations to allow bigger trucks, like B-triples, to service inter-capital, time-sensitive express freight, which is naturally carried by road. &#8220We need more SMART trucks, like quad axles, to carry heavy containers to and from railheads so rail can carry dense export freight more efficiently. &#8220A healthy rail freight industry has a strong role to play in moving the growing freight task safely. The NTC will commit its resources to more rail reforms, where we can clearly add value.&#8221

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