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Transport Minister Michael Woodhouse has confirmed that the Government will seek to give train companies a “competitive advantage” over rail companies by introducing a new law requiring them to be given preferential pricing.

The move follows the publication of a new government consultation paper, which outlines how the Government plans to reform the rail industry.

The Government says the proposal will ensure rail companies receive more revenue than buses.

“The Government’s proposed legislation will give rail operators the same amount of money as bus operators to cover the cost of services,” Transport Minister Mr Woodhouse said.

“That will also ensure that bus operators are able to offer services more cheaply than rail operators.”

He said the Government has consulted with bus operators and their representatives and is working with industry representatives to finalise the legislation.

“I know that rail companies have been keen to engage with the Government and to understand the proposals, and they will be able to comment as part of the process,” he said.

The proposal comes after the Government revealed it had agreed to introduce a new rail passenger bill that will create an independent review into rail travel and pricing.

Mr Woodhouse previously said he wanted to ensure rail operators were given “the same” price for all rail passengers, but he said the rail pricing legislation had not been introduced.

He said a number of options were being considered, but there would be a decision on the new legislation in the coming weeks.

“It’s not a question of when the Government wants to act, it’s a question whether or not we will be legislating on it in the meantime,” he told the ABC.

“This Government is working very closely with bus companies and the Government is doing its due diligence in the light of the recommendations of the independent review.”‘

A competitive advantage’The Government said it was considering the potential changes to rail pricing to be introduced in the legislation to ensure the industry got “competitive advantages”.

Mr Woodhames said the proposed changes would apply to all types of trains, but the Government would only introduce changes to train operators if they were required to operate the trains within the boundaries of the new law.

“There’s going to be a competition for the market, there’s going’t be any price concessions for rail companies, there won’t be a difference between rail and bus operators,” he explained.

“What the Government needs to do is ensure that rail operators get the same money for the same service and if they have to operate within a certain area of the market they will get that.”‘

Not an option’The transport minister said he was confident the Government was on the right track and the proposal was the best thing for the industry.

“We’ve made it clear to the industry we want them to get the most competitive price for rail passengers,” he stated.

“So, if they’re going to get competitive prices, the Government’s going be able give them the same deal as bus drivers, which will ensure they get the lowest possible price.”

Mr Woodham said the Transport Minister had also confirmed the Government had committed to reviewing the rail freight market, which includes the freight and passenger rail industry, by introducing legislation to review the industry’s pricing practices.

“Given the importance of rail freight to Australia, I’m pleased the Government have committed to a review of the freight market,” he added.


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