Sydney Ferries Another Missed Reform Opportunity

MEDIA RELEASE

SYDNEY FERRIES ANOTHER MISSED REFORM OPPORTUNITY

The failure to reform Sydney Ferries is a missed opportunity to drive better value, better quality transport services in Sydney and a dim signal for other, more difficult, reforms across the state economy, says Infrastructure Partnerships Australia the nation's peak infrastructure body.

"The failure to deliver modest reform of Sydney's ferries is very disappointing and a poor signal about the appetite to undertake other, tougher reforms in transport," IPA executive director, Brendan Lyon, said.

"Two years ago, NSW was all about reforming the ferries, with an exhaustive inquiry and a competitive bid process for a new private operator.

"The Walker inquiry in 2007 made an unambiguous recommendation for change. Now, two years later the ferries are being handed back to the unions.

"Changing priorities in transport means there is too little certainty for business or commuters.

"Appointing a private operator to deliver the Manly Fast Ferry service has been a resounding success, with better value, better quality and more reliable services.

"Sydney Ferries cost NSW taxpayers $80.5 million last year, a $20 subsidy from every taxpayer in NSW, whether they catch ferries or not.

"Even with this massive subsidy, Sydney Ferries still lost $14.5 million.

"Taxpayer funding has soared by 10 per cent in the past three years, but patronage has only grown by around two per cent.

"The slight improvement in performance that occurred in 2008-09 was a direct result of competition from the private sector introduced by the market-testing process.

"A private operator could have provided new routes, better value for taxpayers, more services and greater job satisfaction at the same independently set fares.

"A survey by Infrastructure Partnerships Australia found almost four out of five people said service standards were more important than public operation of Sydney Ferries.

"NSW must settle on its priorities and then implement them. Changing reform plans and cancelling projects does little to address urban congestion and service shortfalls.

"NSW needs to release the transport blueprint so that there is transparency and certainty for everyone about the way forward for transport in this State.

Media contact:
Tracy Ong
0438 380 464

SOURCE: Infrastructure Partnerships Australia