Page 2608 - Week 09 - Thursday, 8 August 1991
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Very Fast Train
MR KAINE: I do not think my question will be as good as the previous one and the answer will not be half as entertaining. I address to the Chief Minister a question in connection with the very fast train project. Has the Chief Minister used her close and fruitful relationship with the Commonwealth Treasurer to persuade him of the benefits of the very fast train and, in particular, the benefits of private sector investment in such a project rather than the alternative public sector investment that seems now to be on the books? There must be benefit for the public purse in private sector investment in such a project. I wonder whether the Commonwealth, in apparently rejecting at this stage the very fast train project, have considered the merits of private sector versus public sector investment.
MS FOLLETT: I have not taken up this issue with the Federal Treasurer; to this point I have not really had reason to do so. Members might recall that the first time Labor was in government we expressed support in principle for the very fast train project. We actually appointed a working group at that time to look at the issues involved for the ACT. The report of that working group was very favourable.
I am sure most members in this Assembly would agree that the very fast train has the potential to be of enormous benefit to the ACT, particularly in terms of economic benefit and the creation of jobs. I am very disappointed that it appears that the VFT project is uncertain of proceeding and that there is also a proposal for BHP to close the VFT office in Canberra. I will certainly be having further discussions with the members of the consortium to establish what their intentions are.
I should let the Assembly know that an intergovernmental working group on the tax implications for infrastructure development was formed at the recent Special Premiers Conference. I think that is an important initiative in looking at the kinds of projects the VFT represents and at the intergovernmental tax implications that need to be worked out to allow such projects to proceed. I will certainly be looking for a positive outcome from that working group at the Special Premiers Conference in November because I think that private investment in large scale infrastructure projects such as the VFT that would enhance our regional competitiveness is very important indeed.
I appreciate Mr Kaine's question. If there is a particular issue on which he feels it might be useful for me to speak to or write to the Federal Treasurer, I am happy to take that up. On the general question, I think that to let that intergovernmental committee run its course might be the most appropriate approach at the moment.
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