Stay of execution for Tassie intermodal pending inquiry: PN

<p>Pacific National will delay its decision on the future of Tasmanian container freight services until the completion of a proposed government study.</p> <p>The Tasmanian and federal governments have made a joint offer of a "detailed, independent assessment" of the state’s rail services.</p> <p>This followed a Canberra meeting between federal transport minister Warren Truss and Tasmanian infrastructure minister Bryan Green to discuss Pacific National’s request for more than $100m of funding to rescue the state’s rail services.</p> <p>Pacific National chief executive Stephen O’Donnell said the company would cooperate with the proposed inquiry.</p> <p>"It is our understanding that the government study will be completed by no later than the end of November and will result in a decision regarding the immediate commencement of a long-term funding program for this part of the rail network," Mr O’Donnell said.</p> <p>"It is a matter of urgency that a decision on funding is made by the end of November as customers face the prospect of deteriorating service performance over this period."</p> <p>The Tasmanian rail freight container business lost $400,000 in September, he said.</p> <p>The Federal Government said the study would look at the strategic requirements of Tasmania’s transport task as well as the economies of keeping rail operational.</p> <p>"We will not be pressured into multi-million dollar handouts because Pacific National is threatening to withdraw its container service and walk away from its commitments unless something is not done within a fortnight," Mr Truss said.</p> <p>The Tasmanian Government said some of the assessment work had already been done so the study should not take very long.</p> <p>But Pacific national needed to justify their funding proposals with a more detailed business case, Mr Green said.</p> <p>"In February this year, the Tasmanian Government had received advice from Pacific National that possible government investment was needed in five to seven years and the amount requested was tens of millions lower than they are asking for now," he said.</p> <p>"We need to know what has changed in eight months to take the rescue package to more than $100m."</p> <br />