Victor P Taffa

As our population increases and ages the expansion of all heavy railway networks throughout Australia is essential in order to meet these growing pressures over the next few decades.

In a series of articles The Southern Thunderer investigates a number of issues that spells out why Governments of all persuasions must meet the challenges ahead and instead of deferring or abandoning railway expansion realise the positive impact that this will have on our economy and society as a whole.

The plans for expansion of our railways were included in the Detailed Overview Report as written by myself and distributed in the first instance in January 2001. On 26 February 2009 all of the plans became accessible via the internet. The website address is www.isput.com.au

The Detailed Overview Report will be used as a template for individual websites of Railway expansion that will be progressively launched for every State, Territory and a National focus.

Many of the plans for Sydney are simply a revival of routes laid out by John Bradfield during the 1920’s and there are routes that were drawn up during the 1910’s. The first article focuses on FINANCING & CONSTRUCTION.

FINANCING:

The sources of financing new railway lines in Sydney should include the following:

1)    Federal Government funding

2)    State Government funding

3)    Private Consortium involvement

4)    Railway Bonds

 

1)     Federal Government funding:

The Commonwealth constitution provides for the construction of railways. Under S.51 Cl. xxxiv of the Commonwealth Constitution reads as follows:

The Parliament shall, subject to this Constitution, have power to make laws for the peace, order, and good government of the Commonwealth with respect to: Railway construction and extension in any State with the consent of that State.

 

2)     State Government funding:

Every Government Department EXCEPT HEALTH would have their budgets cut by 10% for FOUR years to pay for new railway lines. When costing of Capital works is undertaken all stages and reports that are required will be produced in the one report thus reducing the overall cost of the project.

The immediate reaction to this idea is that frontline services or back office staff will be the first to go with a budget cut of 10% for FOUR years.

With sound management and a streamlined method of producing the reporting procedures of Government such as the numerous stages of reports such as those for Planning Projects will be able to meet the 10% budget cut without the need to slash staffing levels.

Department efficiencies are now possible given the advent of computer technology. Where the exception is given to Health, financial resources are invariably tied up in bureaucratic red tape and not in the actual delivery of frontline services.

 

3)     Private Consortium involvement:

Enables new railway lines to be built years ahead that is normally possible.

 

 4)     Railway Bonds:

 

• Railway Bonds give ordinary citizens a sense of ownership of a newly built railway line.

 

• Railway Bonds would not adversely impact on our Banking system.

 

• Railway Bonds are the same as Government Bonds, with merely a different name. The railway bonds would have the guarantee of the NSW Treasury. Companies, private individuals and organizations would be encouraged to invest in railway bonds. Investors would earn a very good rate of interest and be TOTALLY FREE of any transaction fees or charges.

 

• The last occasion that Bonds were last issued by the NSW Treasury was when Neville Wran was Premier of New South Wales. During 1980, Premier State Bonds were issued for the raising of capital for Public Works expenditure.

  

• While Railway Bonds would not finance the construction of a line totally, at the time of investment, people could choose which rail line their bonds would be credited against. Later on, when the rail line opened, a commemorative board would be erected at a particular railway station recognising those persons, companies or organizations that financially contributed to the construction of that particular railway.

  

• Recipients of Social security benefits would on a voluntary basis are encouraged to contribute towards the purchase of railway bonds also. Those unemployed persons who supported railway bonds would be considered first for training and employment opportunities when the new railway lines opened.

 

•  The NSW Treasury would receive increased revenues through land tax with the construction of new railway lines. The value of land increases when a railway line is built and this will be reflected in increased land tax revenue.

  

CONSTRUCTION:

 

1)    The period of time to construct new railway lines would be a 30 year period.

2)    There would be three lines under construction at the same time.

3)    New railway lines would incorporate sewerage and drainage pipes, Pay TV, Internet and electricity cables.

 

Railway line construction does not remove the need to maintain or upgrade roads. However given the large expansion of residential areas over many decades without a railway line it is quite apparent that there is a bias against the construction of railway lines.

The difference between the cost of construction of roads and railway lines is marginal.