MEDIA RELEASE
9 June 2023
Labor’s unfair hit to Ettamogah Rail Hub
The nation’s transport ministers must intervene to prevent an unfair hit on small rail businesses including the Ettamogah Rail Hub in regional New South Wales.
Rail safety accreditation fees are set to skyrocket for small rail freight operators due to changes proposed by the Office of the National Rail Safety Regulator (ONRSR) to come into effect on 1 July 2023.
A new full cost recovery model for ONRSR is set to be rolled out across Australia’s rail industry with consumers set to bear the brunt according to Shadow Minister for Infrastructure, Transport and Regional Development, Senator Bridget McKenzie.
“The proposed new tiered cost recovery model is set to hit small rail freight operators with increased costs by up to 700 per cent, naturally the only way for businesses to survive will be to pass those costs on to consumers,” Senator McKenzie said.
“Today the Federal Transport Minister is meeting with her state and territory counterparts and I’m urging the Minister to delay implementation of this new system to allow further consultation and evaluation of cost-impact scenarios.
“The Albanese Government cannot rubber stamp a fee model which will see small independent rail freight operators incur massive increases, while state government rail operations have their costs slashed.
“Australian consumers will be the ones left out of pocket as our private rail freight operators are forced to pass on those costs.
Visiting Ettamogah Rail Hub near Albury today, Senator McKenzie said the cost increase for small freight operators like Ettamogah Rail Hub under the proposed new tier system was outrageous.
“At a time of rising costs across all sectors it is unbelievable the Albanese Government would rubber stamp changes to accreditation fees which will see businesses like Ettamogah Rail Hub hit with a 700 per cent increase” Senator McKenzie said.
“Small, family run businesses are the backbone of Australia, and the Government should be supporting them, not trying to send them broke.”
“Ultimately, this cost shifting exercise from state governments onto the private sector will create an uncompetitive market for smaller rail freight operators and impact the viability of our regional freight rail networks.”
Senator McKenzie said the proposed cost increases had been exacerbated by the Rail Regulator taking expensive legal action against government rail operators. These legal compliance costs should be passed onto the public sector operators, not small and family owned private sector businesses.
Chairman and owner of Ettamogah Rail Hub, Colin Rees said this is an open cheque book for ONRSR as there is now a positive incentive for them to gold plate their services, as customers are obliged to pay.
“The recent increase in our annual fees from $16,000 to somewhere between $100,000 and $140,000,” Mr Rees said.
ENDS