Rail privatisation plan to cost $3m, sparking Opposition claims cash is going to consultants rather than better rides for commuters
The State Government plan to privatise trains and trams will cost $3 million this year – money the Opposition says should be spent improving the system instead.
SA News
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Three million dollars will be spent on the switch to privatised public transport rail services, sparking Opposition claims the cash is being wasted on consultants instead of invested in a better ride.
The State Government last year announced it would move to privatise operation of the tram and train networks, while emphasising that infrastructure and ticket pricing would remain under full public control. It is now seeking private operators, as tram services transition this year before trains follow in 2021. Bus operations are already privatised.
Mid Year Budget Review documents show $3 million will be spent in this financial year, which ends on June 30, to “develop a procurement and implementation program for the transition to a franchised rail service model”.
Opposition Leader Peter Malinauskas has promised to undo the privatisations if Labor wins the next election, a pledge likely to become one of the biggest points of difference in the 2022 campaign.
He said the $3 million was for “consultants and backroom bureaucratic costs” and “money that could otherwise be invested in improving public transport for commuters”.
“The overwhelming evidence shows when public transport is privatised, fares go up and services are cut,” he said.
“This is money that should be invested in our public transport system to improve the service for commuters.”
Mr Malinauskas also accused Premier Steven Marshall of misleading voters before the last election, when he said the incoming Liberal Government did not have a “privatisation agenda”. “After the election, Steven Marshall broke his promise,” he said.
“I have made it clear, if elected, a Malinauskas Labor Government will take back SA’s trains and trams, returning the vital service to public hands.”
Transport Minister Stephan Knoll said he wanted to drive an increase in the quality of public transport, and the number of people using it. “We are continuing to modernise and build a better public transport network to improve services for passengers,” he said. “Under Labor, we saw the number of people using public transport flat line, with more people using bus, train and tram services 10 years ago than when Labor left office.
“The relatively modest spend that is required to modernise our train services will be more than offset by future savings and will deliver better and more frequent train services.”
He said the Government was building $1 billion of new public transport infrastructure, including the Gawler line electrification, extending the Tonsley line and new Park n Rides along the O-Bahn.