I rose in Parliament last Wednesday to ask deputy premier Jacky Trad what progress has been made on the promised review into long distance airfares to regional centres.
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The deputy premier acknowledged my longstanding concerns over regional routes. She also accepted that this is hurting our regional communities and that the State Government has a role in fixing the problem.
The review commissioned by the government last year has been completed, but not yet released to the taxpaying public. The deputy premier has promised me a personal briefing on the contents of the report and its recommendations. This is a small win for our regions and I will be working hard to build on this and get a better deal on pricing.
In July I hosted a forum in Parliament House with major rail and energy users from across the North West Minerals Province. This was to address the big issues hindering growth in the North West. I chaired the meeting that was attended by mine managers from across the region, MITEZ, and Townsville Enterprise Limited.
I received good feedback, with many attendees noting that it was rare to get such strong alignment from competing entities over major issues.
The major problem under the current regime is the rigid, non-commercial pricing structures used by Government Owned Corporations (GOCs) such as Queensland Rail and Ergon. This has the effect of allowing urban-centric governments to use GOCs as a cash cow to prop up their budgets, rather than as an economic enabler to drive growth and investment.
Currently, there is no incentive for operators to increase their use of say, rail infrastructure. The prices just keep increasing and there is little or no provision for making a bulk-use deal with the GOCs without entering immediately into very long term contracts that may not be suitable for an emerging business.
The upshot of this is that more and more bulk freight is being hauled along our roads rather than using rail. Current estimates suggest that over 400,000 tonnes of freight has been squeezed off the rail system primarily due to GOC pricing policies.
There is a fantastic opportunity here for the government to use its GOCs to stimulate economic growth, development and activity. The government made the right decision to keep these assets in public hands rather than privatise them, however they need to be used to their full potential.
These GOCs have an obligation to the community to deliver their services in a way that not only ensures they are commercially viable, but also act as an incentive for private enterprise. Particularly in the north-west minerals province where there is a high reliance on GOC provided services.
If the government is demanding that GOCs concentrate on maximising their own bottom lines, rather than providing a platform to help drive commercial development, then they should have just sold them.
While I think these policies were probably implemented with the best of intentions, at some point we need to look at whether they have worked or failed. When you have close to half a million tonnes of additional ore and bulk produce going on the road while a perfectly good rail line sits largely un-used, that is clear evidence that these policies are not working.
It has got to the point where it’s causing safety risks on our roads for all motorists, both local traffic and the truckies who help drive our economy. Don’t forget we taxpayers only make money off ore transported by rail.
Big changes are needed in our management structure to get the most out of these state owned assets.
I plan to get the main users in front of the government to help sort this mess out and ensure a strong future in the North West Minerals Province.