Melbourne’s trains should move back into public hands to get a better deal for commuters, says union

3 months ago 24

Melbourne’s train network would return to public hands under a rail union push to improve services and oversight of maintenance, faults and staffing.

Rail, Tram and Bus Union Victorian secretary Vik Sharma and national president Victor Moore have drafted a motion for this weekend’s Labor Party state conference to strengthen the upcoming bidding process before the existing Metro Trains contract expires in 2027.

As well as calling for an inquiry to improve commuter outcomes, the union wants the government to consider a public bid from the Department of Transport and Planning to run the metropolitan train network, or at least formulate a road map to reliably return the network to public control.

“The current contract does not grant the government adequate oversight or control over operations of Metro including staffing levels, faults, maintenance and decision-making about the network. Withholding critical information and decision-making control gives Metro an unfair advantage and makes it more difficult to prioritise the public interest,” the draft motion said.

A separate proposal from the Electrical Trades Union to overhaul the way gender quotas are calculated in Victorian Labor’s preselections, previously revealed by The Age, has been withdrawn after it caused consternation that the number of Labor women elected to parliament could go backwards.

Other draft motions circulated before the state conference include a proposal to reform the “undemocratic” municipal voting system in the City of Melbourne, where businesses get two votes. The Australian Workers Union is also calling on the government to abolish its public sector wages cap.

The Rail, Tram and Bus Union motion on the metropolitan train network calls for an independent inquiry into the current contract to identify gaps in the government’s knowledge. It would also review how confidentiality rules built into the franchise agreement hinders oversight and collaboration between the government and the operator, “with the aim of strengthening the state’s position and improving public transport outcomes”.

The findings and recommendations of that inquiry should be reflected in the next tender process, expected to begin soon, the union wrote, to guarantee ongoing access to operational data.

The motion, which will be put to a vote of Labor faithful this weekend, would not force the government to act. But, if supported by the membership, it would pressure Premier Jacinta Allan’s government to consider the resolution.

The network was privatised in the 1990s under the Kennett government, which Allan continues to besmirch decades later for selling off state assets.

The Age last month revealed Victoria was paying Metro Trains hundreds of millions of dollars to offset a post-pandemic decline in patronage, ensuring it continues to deliver strong profits until its contract ends in November 2027.

Metro Trains – a consortium of Hong Kong’s MTR Corporation, Chinese government-owned infrastructure group John Holland and UGL Rail – has operated the rail network since 2009.

The existing contract began in 2017 and was extended to November 2027 for a total of $8.997 billion.

The union’s claims about the lack of transparency in Metro Trains’ operations are partly supported by a 2023 report by the Victorian Auditor-General’s Office, which found the Transport Department was not effectively monitoring how Metro was managing the rail network.

The auditor-general warned the department did not know the condition of the tracks and trains leased to Metro, which meant it could not ensure the current and any future rail contracts delivered value for money for Victorians.

“The department does not know enough about how Metro prioritises work to assure it that Metro targets the most needed renewals, rather than the cheapest or easiest ones,” the report says.

Victoria’s V/Line regional train and coach network is owned and run by the state, but Melbourne’s train, tram and bus operations are privatised.

Britain is in the process of renationalising most of its privatised rail network under a policy promised by Keir Starmer’s Labour Party before its election victory last year, arguing it will deliver £680 million ($1.4 billion) in savings to taxpayers a year, including from shareholder dividends.

Metro Trains reported that 93.5 per cent of services were on time – meaning 6.5 per cent of trains arrived more than five minutes late – in the 12 months to June. A total of 98.8 per cent of trains were “delivered”, meaning they were not cancelled and did not skip any stops. Metro has an on-time performance target of 90 per cent and delivery target of 98 per cent.

A spokesperson for Metro Trains declined to comment. A government spokesperson said the draft motion was a matter for the party.

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