LOCAL jobs were threatened during the recent dispute between WestNet Rail and the State Government.
WestNet Rail closed four lines – the Katanning to Nyabing, Tambellup to Gnowangerup, York to Quairading and Trayning to Merredin spurs – and threatened to close 22 more.
Wagin to Albany, Wagin to Lake Grace and Lake Grace to Newdegate sections of rail, plus 19 more throughout the State, were listed in a memorandum from ARG’s group general manager bulk west Ken Potts to all grain staff as next on WestNet’s chopping block.
ARG, owned by Queensland Rail, owns the locomotives and rolling stock, while WestNet Rail leases the lines from the State Government.
Mr Potts said the four lines already closed would have a minimal impact on ARG business.
“However, Westnet has also advised us that unless government funding is made available, it will move to close a large portion of the narrow-gauge rail network after 1 November and no later than 31 December 2009,” he wrote to staff.
“I know you will be concerned by the announcements, I share your concern.
“It is frustrating that we find ourselves caught in the middle of a dispute between WestNet as the operator and the WA Government as the owner of the track.
“Worse still, decisions that could seriously affect our business and our jobs are outside our control.”
WestNet closed the initial four lines when the deadline for its demands of State Government funding of $45 million were not met.
Transport Minister Simon O’Brien initially said he would not give in to demands but late last week he and WestNet Rail general manager Paul Larsen announced an agreement had been reached.
The four lines that were closed have been reopened and Mr Larsen said all lines would remain open during the 2009-10 harvest.
In return, Mr O’Brien agreed to establish the Strategic Grain Network Committee, to exam the network and provide advice and recommendations on its future and any required investment of government funds.
"I am confident that the SGNC will provide the government and the sector with productive and credible recommendations before the end of 2009 that will enable all parties to constructively plan for the future," Mr O'Brien said.
"By the end of July, the council will advise me of the full impacts of current service deficiencies and ways in which the industry and governments can work together to ensure the grain transport system can continue to do the job we all need it to do, both for immediate harvests and for the longer term.
"This will include looking at the line that runs from Northam to Albany.
"By the end of the year, the council will also give me additional advice about the further changes to the rail system that will be required to meet industry's medium term needs over the coming 10 to 15 years."
Mr Larsen said he welcomed the government's high priority identification of the Northam to Albany rail line.
"We anticipate a clear recommendation from the Strategic Grain Network Committee on funding for upgrades on the Northam to Albany line in the very near future," he said.
Mr Larson added WestNew will continue to work closely with both State and Federal governments and the SGNC.