Industry bid for QR coal sale ignored by Premier

Following an industry meeting in Brisbane on March 8th, Queensland Resources Council chief executive Michael Roche said coal producers were unanimous in this view.
“Strong rail infrastructure performance is critical to the coal industry’s ability to stay Queensland’s and Australia’s largest export industry,” Roche said.
“Queensland coal producers are concerned about the performance of this crucial coal industry infrastructure under the structure proposed by the Queensland Government whereby a privatised QR National will both control the coal track network as well as operate a rail haulage business in competition with other haulage operators using that track.
“Of particular concern is that the government’s existing proposal to float a vertically integrated coal business will severely limit investment in the new rail capacity needed for industry growth and new job creation.”
Roche said by contrast, coal producers – as owners of the coal track network – have a very strong incentive to ensure a high performing network and to make timely investment in new rail capacity to avoid export bottlenecks.
“The Queensland coal industry has committed to delivering an early proposal to the Queensland Government as a real alternative to the proposed public float of QR’s coal business.
“The coal industry is not asking the Queensland Government to abandon the public float process.
“Rather, industry is simply asking for the opportunity to provide an alternative bid and have that industry alternative judged side by side against the public float option,” he said.
Roche said the Queensland coal industry would seek early discussions with the Queensland Premier and key stakeholders on the industry approach.
Meanwhile, Queensland transport minister Rachel Nolan said there would be no change to the original sale plan.
"The government's view and the government's previous announcements have been that Queensland Rail will be publicly floated at the end of this year with a maximum shareholding to any party of 15 per cent and there is no variation from that position," Nolan said.
She was backed by premier Anna Bligh.
"What you can see from the complaints from coal companies is verification that the Queensland taxpayers have in effect been subsidising their transport arrangements for several decades," Bligh said.
"This will put an end to that."
Bligh said coal companies had their own vertical structures in other states but were seeking to deny a similar advantage to Queensland taxpayers.