Premier announces a positive new future for Melbourne's public transport
19/02/2004
New partnership agreements between the State Government and Melbourne's public transport companies, Yarra Trams and Connex, will deliver stability and improved services to customers, the Premier, Steve Bracks, said today.
Mr Bracks said the Government had negotiated new five-year contracts that gave better value for money and a better system.
''In late 2002, the public transport system was on the brink of collapse when National Express walked away from its contractual obligations. The other operators were experiencing serious financial difficulties,'' Mr Bracks said.
''This crisis was the result of unsustainable contracts signed by the previous Liberal Government, which abdicated responsibility for public transport and set unrealistic forecasts for patronage growth.''
Mr Bracks said the Government had announced last year that in addition to the $1.3 billion earmarked under the existing contracts to run public transport for the next five years, around $1 billion extra would be needed to keep the privatised system from collapsing.
''In order to budget for those extra costs, the Government was forced to make some tough decisions, including tolling the Mitcham Frankston Project, which we announced last April,'' he said.
Mr Bracks said the new agreements were based on more realistic levels of patronage growth and the subsidies needed to make the system viable.
''It's true today that services, reliability and customer satisfaction have all improved since the introduction of a privatised public transport system, but it's clear the model adopted by the previous Government simply wasn't sustainable,'' he said.
''The need for financial backing is consistent with public transport systems around the world, with only a handful of systems - Tokyo, Singapore and Hong Kong - ever recovering 100 per cent or more of their costs.''
As part of the agreements, the Government will make payments to Yarra Trams of $112 million per year over five years and Connex of $345 million per year over five years.
Mr Bracks said the Government would also take responsibility for long term planning of the transport network and new ticketing arrangements.
Operators will continue to run day-to-day services, sell tickets and maintain the rail system.
Other initiatives in the new partnership agreements include:
For trains -
- At least an additional 100 front line customer service staff;
- Staffing of at least 30 extra stations in the morning peak (meaning that 80 per cent of all passengers will travel through a staffed station);
- Staffing of 20 extra stations on weekday afternoons;
- Increased security patrols on more trains from 9 pm to the last train;
- Introduction of an improved driver training program over the next two years;
- The purchase of five new six-car train sets to cater for increased demand;
- The continued delivery of 46 new trains to be operating by 2005 and
- All night New Year's Eve services on most routes, with greater frequency in peak times.
For trams -
- Introduction of a tram priority system to reduce travel times and increase reliability;
- Provision of 50 additional customer service staff;
- Docklands Drive Tram extension into New Quay and Waterfront City;
- Improved standards for the upkeep of trams, tram stops and stations;
- At least 25 additional new trams will be operating by 2005 and
- New Year's Eve tram services to run until 2am, with Nightrider buses to run all night.
The Minister for Transport, Peter Batchelor, said in entering into the new partnerships, the aim was to achieve the best possible service for public transport users, in the most responsible, cost effective and efficient manner.
''While the previous Liberal contracts were fundamentally flawed and there seemed to be a preparedness to let the system run down, this Government has taken a sensible approach to the new partnerships, retaining elements of the previous contracts that worked, such as incentives for improved punctuality,'' he said.
''The new agreements retain the operators' international expertise while ensuring the system is stable and economically viable.''
''They've been designed with the demands and expectations of commuters in mind, in the spirit of financial viability and joint responsibility.''
An independent Probity Auditor has overseen the negotiations, and the Auditor General's office is undertaking a review of the contracts signed by the previous Liberal Government.
The new agreements with Yarra Trams and Connex come into effect in mid-April. There will be no interruption to passengers currently using M>Tram and M>Train services throughout the transition phase.
State Government Fact Sheet 1.
Restoring the Balance - Public Transport Arrangements
The original public transport franchise agreements came into effect in 1999. The Bracks Government believes rather than being based on optimising public transport for Victorians, the agreements were founded on removing financial and social responsibility for an essential public service.
Features of the 1999 contracts included:
- A rushed sale process, selling to the lowest bidder, irrespective of local knowledge or track record;
- Significant overestimation of passenger levels;
- Transferring unsustainable levels of risk on to the private sector;
- Minimising Government cost and
- Fragmenting the transport network in the belief competition would drive better performance.
The result was:
- Unsustainable business plans condemning operators to significant financial loss;
- Contracts which progressively drained financial resources out of the rail system, making the operators' problems worse each year;
- A fragmented system incapable of responding in a coordinated way to issues like fare evasion and
- The withdrawal of National Express from the franchise agreements, and a real threat that unless the Government took action, other operators could also withdraw.
Recognising the flaws with the original contracts, the Bracks Government has now entered into partnership agreements with Yarra Trams and Connex retaining elements of the original contracts that work, and incorporating new elements based on:
- Allocating responsibility to the partner best able to manage it;
- Providing adequate resources to fund rail services, while using an 'open book' review of costs to ensure value for money;
- Partnership through joint planning and a stronger role for government and
- Improved coordination by amalgamating marketing and customer information under the Metlink banner.
Over many months, the Government has reviewed all the costs and revenues of the train and tram businesses on an 'open book' basis. The system would cost at least as much to operate in the public sector, and spending any less would lead to further financial instability and could threaten services. Connex and Yarra have a demonstrated track record in providing extra services, more punctually and reliably.
The new partnerships with the Bracks Government clearly outline the roles and responsibilities of the operators, government and the supporting organisation, Metlink.
The responsibilities of the operators are to:
- Day-to-day operation of trains and trams to government performance standards;
- Responsibility for customer service including tickets sales, passenger security and station staff;
- Employment and management of staff and
- Maintenance and cleaning of vehicles, tracks and stations.
The responsibilities of government are to:
- Regulate safety;
- Monitor the performance of operators and Metlink to ensure contractual standards are met;
- Regulate fares;
- Develop a new ticketing system;
- Ensure long-term planning of the public transport network and major public transport investment;
- Ensure integration between bus, train and tram services and
- Pay operators to run the day-to-day services.
The responsibilities of Metlink are to:
- Represent the tram, train and bus operators across Melbourne;
- Market public transport across Melbourne;
- Manage day-to-day operation of the ticketing system through the contract with OneLink;
- Provide service information to passengers through a website and call centre;
- Collect data on patronage and
- Allocate revenue from ticket sales between public transport operators.
State Government Fact Sheet 2.
Public Transport Services Since 1999
Despite the severe financial difficulties experienced by the private operators in running public transport services, Victorians have seen significant improvements in the day-to-day operations of the system over the past four years.
OPERATIONAL IMPROVEMENTS
- Late running and cancellations have reduced by around 35 per cent;
- Service levels have increased by 5-10 per cent;
- Patronage has increased at twice the pre-privatisation rate ý over 3 per cent annually;
- Steadily increasing customer satisfaction based on quarterly surveys of passengers and
- Better stability in the unionised workforce.
STAFF
From 1992-1999 the Kennett Government reduced the workforce of the Public Transport Corporation from 18,000 to 4750.
In 2000, the Bracks Government introduced:
- 100 roving conductors on trams
- 100 roving safety officers on trains
TICKETING
- Daily tickets for sale on trams have been introduced;
- The reliability of automatic ticketing machines on station has improved from 72.8 per cent in March 2001 to 98.7 per cent today - largely as a result of reduced vandalism;
- Contract with OneLink renegotiated to promptly repair machines when vandalised and
- Transport Ticketing Authority established to investigate the introduction of a new Smartcard ticketing system for when the current contract expires in 2007.
ROLLING STOCK
- Refurbished trains and trams, including new seats, passenger intercoms, closed circuit security television (on some vehicles), new flooring, handgrips and livery;
- 36 low floor trams on Yarra Trams' network fully introduced in 2003;
- 59 low floor trams on M>Tram's network, continuing to be introduced;
- 29 new trains on Connex's network, continuing to be introduced and
- 31 new trains on M>Train's network, continuing to be introduced.
ACCESSIBILITY
- Low floor trams introduced;
- Low floor buses introduced;
- Raised platform tram stops with ramp access, improved signage, audio timetable information and tactile paving and
- Bus stops with tactile paving, audio timetable information and improved signage.