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Brumby extends Connex contractEma Corro, Melbourne
1 September 2007Victorian Labor Premier John Brumby said on August 21 that he will only extend his government’s contracts with Yarra Trams and rail company Connex until the end of 2009, after which there will be a world-wide tender for private operators of Melbourne’s public transport systems.
The announcement came amid increasing public criticism of and campaigns against Connex due to its irregular, over-crowded services and safety concerns.
Despite promising to spend an extra $7.5 billion over the next 10 years, the Victorian government’s proposed changes to the public transport system have consistently failed to address these issues; instead focusing on a new ticketing system and minor upgrades to services. Brumby also ruled out any possibility of taking the rail and tram systems back into public ownership stating: “We concluded that the franchise system does drive value for money for Victorian taxpayers”. A 2006 report by the University of Melbourne’s Urban Planning Program in the Faculty of Architecture, Building and Planning showed that $1.2 billion (which could rise to $2.1 billion by 2010) has been wasted in private subsidies since privatisation was undertaken in 1999. |
From: Australian News |
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