Page 1181 - Week 05 - Wednesday, 24 June 1992
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MR CONNOLLY: I thank Mr Stevenson for his question. It is true that the ACTION subsidy is about $54m, and that roughly translates to $1m a week, although, as we have been at pains to point out, it is incorrect to say that that is all money that is being thrown away or wasted. Every State and Territory subsidises its public transport system, the ACT as well. The most recent Grants Commission report published - the May 1992 update - indicated that when all had been taken into account it was about a $15m oversubsidy. When you take into account what they accept as legitimate national capital influences, it comes down to about a $7.5m oversubsidy.
The goal of the Government has been to reduce that level of subsidy to what it should be, to a standard average, and we have achieved $2m in the budget just gone. We will achieve another $1m from 6 July with RAN, and we look forward in the current budget to further savings. So we are reducing that subsidy. Mr Stevenson had approached my office and asked some questions about the level to which the subsidy has gone up, and I had some prepared detail on that. The question he has now asked is whether I can give him a breakdown of where the subsidy goes. The best breakdown of that is in the annual report that I tabled some weeks ago.
It does show that salaries are a significant component; but salaries go not just to drivers but also to workshop staff and administrative staff, and we are looking at savings across the board - from the head office, senior management level, through to the drivers. There have been significant savings achieved from the new shift arrangements. It was the subject of some industrial disputation, but savings have been made. We are looking at savings in the workshops. We are looking at savings across the board. I would suggest to Mr Stevenson that the best breakdown of where the costs are, where that $1m goes, is to be found in the annual report. Of course, a further examination of that can be made in the Estimates Committee.
MR STEVENSON: I have a brief supplementary question. Could Mr Connolly also comment on the drivers' concerns, that some of them feel that they have been made the brunt of the cause for increases?
MR CONNOLLY: I certainly would not be blaming the drivers. What we have said is that all areas of ACTION have to work together to achieve some change. The TWU has been accepting that, as have the metal unions. I think everyone realises that it is in their interest to work with government for a process of change. We have a process going whereby all the unions are talking with a facilitator about workplace change and reform. I think everyone realises that long-term, secure, productive jobs in ACTION can be preserved and maintained if we work together.
My colleagues opposite in the Liberal Party seem to talk about privatising ACTION and potentially sacking hundreds. I think the unions and the workers, particularly the drivers, realise that it is in their interest to work with government to ensure their long-term secure employment. They are doing that, and the RAN system, starting on 6 July, is a significant savings measure.
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