Hon Ken Travers questions the adequacy of the $2.1 million allocated for the Fremantle Port Rail Service subsidy, given various container movement scenarios. The Minister assures the budget is sufficient based on current estimates and will monitor the situation.

AnsweredQoN 3041Legislative Council
Asked
10 November 2010
Portfolio
Transport

QuestionView source ↗

I refer to the $2.1 million allocated in the 2010-11 Budget for the Fremantle Port Rail Service, and ask -
(1) Is the $2.1 million allocated sufficient to meet the estimated number of containers that will receive the subsidy this year?
(2) Can the Minister explain how will the $2.1 million be sufficient to meet demand if the same number of containers are moved by rail as were moved in the 2009-10 financial year?
(3) Can the Minister explain how the $2.1 million will be sufficient to meet demand if the target of 16 percent of containers being moved by rail is met?
(4) Can the Minister explain how will the $2.1 million be sufficient to meet demand if the expected growth in the number of containers going through the port is achieved, and we maintain the same percentage of containers on rail as in 2009-10?
(5) Can the Minister confirm that the $2.1 million allocated is only enough to pay the subsidy for 46 666 TEU’s?

AnswerView source ↗

Answered
15 February 2011
Responded by
Minister for Transport
Response time
97 days
The
Department of Transport
advises:
(1)  Department of Transport estimates are that $2.1m will be sufficient to meet the estimated number of containers that will receive the subsidy this year
(2)  In 2009-10, 45,700 TEU were subsidised.  A similar volume of containers requiring a subsidy is estimated in 2010-11
(3)  The reduction in the competing bulk freight rates as a result of the GFC will mean the 16 per cent target is unlikely to be realised this year
(4)  The rail container movement will be monitored and if necessary the Government will consider if additional support is warranted
(5)  Yes.
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