Kennett to privatise public transport
By Tully Bates
MELBOURNE — The Kennett government has announced plans to sell off the entire state public transport system by the end of next year, creating six companies — two rail, two tram, a country rail freight service and V-Line country passenger service — which will all receive government subsidies.
The break-up of public transport will begin with an initial period of corporatisation, followed immediately by privatisation.
A large part of the Public Transport Corporation's (PTC) bus services were sold off shortly after the Liberals came to power in 1992. This service is now the most heavily subsidised section of all public transport: 30 companies received $100 million last year, while the entire PTC received $183 million.
Public transport unions have been attempting to negotiate a new enterprise agreement since late last year. The union had agreed to the corporatisation of public transport in return for a guarantee of no losses in jobs, conditions or superannuation entitlements.
The government has offered a one-off superannuation payment which is supposed to offset any losses incurred by workers because of the changes, but it cannot say how the payment will be calculated. It is also offering a one-off payment of $5000 to offset losses in conditions.
Tram conductor and Resistance member Chantal Wynter told Â鶹´«Ã½ Weekly, "The government is trying to buy our working conditions for $5000. These conditions have been won over many years. Clarrie O'Shea [former tramways union secretary jailed during one dispute] must be turning in his grave."
The Public Transport Users Association has commented that privatisation benefits neither the workers nor the public. In countless overseas examples, it has always resulted in job losses, increased fares and reduced services.