David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government, Senator Faulkner. Was the Australian government advised of Pacific National’s intention to sell their rail operations in Tasmania? If so, were discussions held with the Tasmanian government about it, when and with whom?

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

I will provide the senator with what information I have in relation to his question. I can indicate to the Senate that the government is aware that on 12 June, Asciano announced its decision to sell its rail operations in Tasmania. At this time, Pacific National has committed to continue to provide services to its customers as the sale process progresses. The Australian government is committed, of course, to increasing rail’s share of the national freight task, but decisions related to services on the Tasmanian intermodal network are matters for the state government, as the track owner, to determine.

As I understand it, it is certainly the intention of the federal government to have discussions with the Tasmanian government about our current and future funding commitments. Senator Bushby specifically asked me about advice in relation to the sale. I can say that the advice I have is the Minister for Infrastructure, Transport, Regional Development and Local Government—who I am very ably representing in the chamber—

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Senator Minchin interjecting—

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

I was just checking, Senator Minchin, that you were listening. The minister, his office, and, I believe, his department had no knowledge of this matter prior to its becoming public knowledge when it was announced on Thursday, 12 June.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that the government appeared to have no knowledge of this prior to the public announcement being made, can the minister confirm whether the Australian government has paid the $78 million committed by the previous government under the rail rescue package? If so, will the government be seeking confirmation that Pacific National has met all of their contractual obligations. If not, does the government intend to honour this agreement?

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

I am certainly aware that the Australian government’s share of the package is $78 million over 10 years to fund the upgrade and rehabilitation of the AusLink Tasmanian rail network. I understand the Tasmanian government is committing $40 million over 10 years for ongoing network maintenance. I also understand that Pacific National is to contribute $38 million over eight years to upgrade its rolling stock. Under the MOU, Pacific National agreed to a 10-year operating term subject to trigger events which enable both the Tasmanian government and PN to reconsider arrangements. The trigger events here—that is, a 20 per cent or more reduction in intermodal volumes or a loss of one or two—

Alan Ferguson (President) Share this | Link to this | Hansard source

Senator Faulkner, your time has expired.

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

I will take the remainder of Senator Bushby’s question on notice. (Time expired)