I TALK a lot about RateGate. Now let’s talk about FreightGate.
Just as the big parties have been failing us on rates for decades, they’ve been failing us on rail too.
Obviously, our lack of passenger rail is a prime example. The service was cancelled by a Liberals and Nationals in 1993 and not returned by Labor, despite a commitment to do so in 1999.
In relation to freight, their record is not much better.
The Murray Basin Rail Project is a case in point.
In 2014, the Napthine Coalition Government announced and budgeted $220 million towards the $440 million Murray Basin Rail Project.
The announcement was lauded by farmers and freight operators across the Mallee as a major game-changer.
In 2015, an incoming Andrews Government signed off on a business case that endorsed the $440 million costing.
In 2017, the Federal Coalition backed it in too, committing $220 million in matching funds.
The problem was, the costing was wrong.
It was grossly undercooked and riddled with false assumptions.
The real cost? Closer to $2.5 billion.
By 2019, the Andrews Government had to admit the money was running out.
Barely two of the five stages had been completed.
The Victorian Auditor-General’s office was scathing.
A rescope was required. The State and Federal governments committed a further $250 million to “close-out” the project.
The finished product is a far cry from the original vision.
Some stakeholders are satisfied with the outcome. Others are livid, and I can understand that.
They were sold a false promise.
But the partisan brawling and finger-pointing is getting us nowhere.
This week I brought together several key stakeholders to see whether we could cut through some of the divisions and find common ground.
The common ground is clear – we want less freight on our roads and more on rail. We must identify ways to do that which are clear, effective, realistic, timely and properly costed. It’s time for a new deal. Let’s work together.
