Queensland Rail to be statutory authority

QUEENSLAND'S passenger rail network is being primed for privatisation, the state opposition says.

Transport Minister Scott Emerson announced on Monday that Queensland Rail (QR) will be changed from a government-owned corporation to a statutory authority, reversing a 2006 decision.

From May, the minister will have tighter control on the day-to-day running of the business and will no longer have to issue directives to initiate change.

He criticised the organisation for being profit-focused, rather than passenger-focused, and believes the changes will rein in the ballooning cost of rail.

He insists it has nothing to do with privatisation, but says a decision on that is yet to be made.

"Transferring it from a government-owned corporation to a statutory authority brings it closer to government, not privatisation," he said.

But opposition transport spokeswoman Jackie Trad doesn't buy it.

Under the new arrangement, she believes the government would no longer have to deal with a board and stakeholders.

"This way it is absolutely easier to privatise," she said.

The change would also make it easier to cut staff entitlements, conditions and wages, making the organisation more attractive to private buyers.

"What we have here is Mr Emerson clearing the decks.

"What we have here is the Newman government getting ready for the full sale of Queensland Rail and the sacking of more workers."

A report into the state's finances, headed by former federal treasurer Peter Costello, recommends rail be delivered through contestable contracts under franchise and lease arrangements.

More detail is expected later this month when Mr Costello's full 1000-page report is finally released.

Mr Emerson said QR had become the most expensive train operator per kilometre in Australia, around two-and-a-half times more expensive than the average.

Without action, funding would need to increase from $1.6 billion to $1.9 billion over the next two years.

"We will make the organisation more efficient so we can employ more train crew, deliver better timetables and add more trains to the network," Mr Emerson told reporters on Monday.

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