Victorian farmers in rail hike backlash

<p>The Victorian Farmers Federation (VFF) reacted angrily yesterday (Wednesday, June 20) to a 20% rise in rail fees for grain to a rate five times higher than for other goods using the same lines, blaming the Victorian Government for the hike.</p> <p>The claim was rejected by a Government spokeswoman, who pointed to the pledge two weeks ago to subsidise about 60% of the cost to maintain Victoria’s regional rail freight network as part of its buy-back agreement, and that V&#47Line and Pacific National had just introduced increased access charges.</p> <p>The VFF said: &#8220The Bracks Government has announced a new rail access regime which will result in a 20% increase in rail rates for grain growers, an average of $4.50 per tonne.</p> <p>&#8220These fees apply to all rail lines owned by the Victorian Government, except for the Portland line where the fees remain unchanged.&#8221</p> <p>VFF economics committee chairman Geoff Crick said the Bracks Government’s announcement would result in more grain being transported on roads. </p> <p>&#8220Growers will be slogged 20% more on rail rates for rail lines that have significant speed and weight restrictions,&#8221 Mr Crick said.</p> <p>The Victorian fees were double those of Australian Rail Track Corporation (ARTC) and triple those in NSW, the VFF said.</p> <p>&#8220The 20% increase in fees for many lines will see a major shifts in delivery patterns with the result that our roads will have more large grain trucks carrying grain over longer distances,&#8221 Mr Crick said.</p> <p>On June 8, Ms Kosky said that in 2006, the Essential Services Commission set reference price levels that would be required to provide enough income to fund maintenance of the regional rail network </p> <p>&#8220The Government and Pacific National agreed that the prices approved by the ESC were above what the freight operator and its customers would be able to afford and have agreed to a set of rates below the ESC-approved level,&#8221 she said.</p> <p>&#8220The agreed set of rates should generate about 40% of the funds needed to properly maintain the rail network with the Government to contribute the balance required for maintenance.&#8221</p> <br />