01.52 am, Friday February 24 2012

NSW opposition want train bailout details

20:36 AEDT Sun Jan 29 2012
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The NSW government must reveal the details of a $175 million public takeover of the ailing Waratah train contract, Opposition Leader John Robertson says.

The multi-billion dollar public-private partnership to build the 626 Waratah carriages has been beset by delays since its announcement.

The former Labor government promised all 78 trains would be in service by 2010, but only six are being used by CityRail.

The Reliance Rail consortium has failed to find investors and has been struggling under the debt involved to finance the deal.

The state government will take over ownership of the failed private-public partnership announced in 2006, the Sun-Herald reports, pouring in a $175 million guarantee to keep the Reliance Rail consortium afloat.

Mr Robertson called on Premier Barry O'Farrell and Treasurer Mike Baird to release the details of the new contract.

The government also needed to show that safety would not be compromised under any renegotiation of the Waratah deal.

"Barry O'Farrell and Mike Baird have negotiated a bad deal for taxpayers," Mr Robertson told reporters in Sydney on Sunday.

"That means compromises to the safety standards that will put rail commuters' safety at risk."

"This is a bad deal because Barry O'Farrell and Mike Baird can't negotiate with the private sector."

 
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