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If it ain't broke, break it
Friday, 15 January 2010

 

If I head down to my local coffee shop it doesn't take long before the question comes forth from someone sitting on the unique tree stump chairs - so why is this State in such a mess?

Trying to explain one policy failure after another can prove tiresome however, the recent decision by the NSW Labor Government to award the Manly fast ferry contract to a new company now makes it easy for all to see.

I am not having a go at the new operator, and indeed we all wish them all the best in delivering the best possible ferry service, but the tender has ensured that the odds are stacked against them. The State Government in its wisdom decided that the best way to run this tender was to ask every bidder to name the highest possible price they would pay for wharf access. In other words the critical requirement was whoever offered the largest up-front payment to the Government. This company would then be rewarded with the right to run the service for five years.

In a case of repeating a somewhat grim history, we all remember the Government’s masterstroke decision to use infrastructure to raise revenue through the Lane Cove Tunnel and Cross City Tunnel. Well if you don't remember, the game goes like this… the Government takes large amounts of cash from the operators, this then pushes up the costs of the project paid for by higher tolls from unsuspecting commuters and finally results in barricades being erected in our community streets to force as many as possible to pay the inflated toll price. Probably worst of all these barricades are then often found at some of life’s most time critical moments (anyone with a two year old knows what I mean!).

We have had words to the effect that this policy was wrong however, if the Manly fast ferry contract is anything to go by, the cash registers in Macquarie Street are again ringing with another opportunity to claim revenue over any form of community interest.

It is not without irony that the current private operators of the Manly Fast Ferry have seen patronage grow by 47% since the JetCats were last running, compared to Sydney Ferries where patronage grew by close to 2%. At the same time Sydney Ferries last year had a cancellation just over every 16 services compared to one every 2000 services for the private operator. In terms of a direct comparison they have exceeded their only competitor at every turn.

So what did the current operators do wrong? Well they didn't pay enough for wharf access and the commuters will now have to start paying this back. This is before you add in the $7 million per annum the State Government is saving by axing their service in the first place.

So there we have it - Government in NSW under the current regime is about raising revenue by any possible means and forgoing community interest in the process. As you shake your head it is not a Fawlty Towers skit but Government NSW-style 2010. And if you want to know why we are in such a mess, this tender is a standout piece in the rubble.

So what would the Opposition do differently? We would issue tenders on the basis of the best community outcome. In the case of ferries it would be the lowest possible fares, best possible service and newest vessels – not cash to Government.

As it now sits, the NSW Government has jeopardised the only transport service that was working in the State.

 

To read this piece in the Manly Daily CLICK HERE

or to read a version in the Daily Telegraph CLICK HERE

To see Channel 9's story on the issue CLICK HERE

 

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Comments (7)
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hear hear
Hear hear - it should be about all 3 considerations "lowest possible 
fares, best possible service and newest vessels" - not just cash up 
front, that's guaranteed to be a failure and more expensive for the 
commuter. The best possible service/result - is one that offers 
convenient service without the big ticket price. In the end the commuter 
has to weigh up the cost benefit ratio between a fast service and the 
extra cost of that benefit ...and at some point the balance will tip.
Posted by: Pamela Jeffery at 18-01-2010 11:47
Manly Fast Ferry
Well done Mike for raising profile on this poor piece of goverment "work". What effort have they put into this - have they checked the history of the service since the current operator started; the upgraded vehicles; departures on time; happy commuters; staff who understand "client service" & actually speak to their clients - surely if they had done even one of these things they would have awarded the current operator the next period instead of making it a cash-point & not at all about commuters - who will ultimately be paying for the government's cash injection - the commuter. Not a Fair Go. Not Australian.
Posted by: Karen Stace at 18-01-2010 12:49
Manly fast ferries and the state govt
It is a very predictable outcome from a state govt with Labour's track record, that they would do a cash grab against sydney commuters. It has been doing this for 11 years now, and their ability to spin a story that lets them get away with this is disturbing. We need a new (Liberal) government as soon as possible.
Posted by: ross trivett at 18-01-2010 13:26
Manly Fast Ferry
Mike you miss one important point. If private enterprise ran tenders like this, it would be legally classified as corruption and the company officers (probably from both companies) would be jailed.
Posted by: Greg Mann at 18-01-2010 17:52
If it aint broke, break it
Mike, you have my 100% backing on this issue. For me the reliability is the key area. This service is predomiatly used by CBD workers. If it not reliable, workers will seek alternatives such as buses or cars which will add to the problem we are faced everyday on the spit bridge. There is no doubt, under the current operators, the reliability of the service has been fantastic. Thats because there is some incentive for them to make sure it works. It called running a business. The Labor government is also looking at it as a business, however from a different angle. They are looking for another revenue stream to plug a leak elsewhere in thier gradually sinking ship. The focus should be on realiability and to that end, you cannot fault the current operators.
Posted by: Trent Doughty at 18-01-2010 20:43
Manly Fast Ferries
Excellent summary of the issue Mike. So what's the plan of attack from here?
Posted by: Dan at 20-01-2010 09:02
Dan's question re plan of attack
Hi Dan, thanks for your feedback. Mike has been inundated with copies of emails commuters have sent to the Transport Minister who are bewildered at the tender decision and asking for it to be reissued. We will collate these and Mike will present to the Transport Minister when Parliament resumes next month and call in Parliament for the Transport Minister's response to the community's concerns. In the meantime, please encourage your fellow commuters to email as well to maintain the pressure. 
Cheers, Lisa from Mike's office
Posted by: Lisa from Mike's office at 21-01-2010 09:03
 

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