By Dennis White
Australian National workers face serious doubts about their future following moves by the federal government to investigate the performance of the government-owned enterprise.
A letter from AN's chairperson, Jack Smorgen, to federal transport minister John Sharpe, raising concerns about AN's financial viability and its relationship with National Rail, led to the minister ordering a review of both AN and NR. The review recommendations, which have not yet been made public, were to have been reported to the minister by June 19.
In the letter which instigated the review, Smorgen stated "We wish to alert you to the seriousness and urgency of the position and advise of our intention to evaluate alternative structural and ownership options".
It is claimed that NR is in debt to AN for $36 million for fuel and other service costs. The objectives of the review included examining the performance of NR as a commercial entity and means to improve its performance; examining the commercial state of AN and its future prospects; and reporting on options for the future AN and the services it provides, including the scope for further contracting out or disposal of any part of the service.
The Public Transport Union made a submission to the review outlining its concerns for the industry and the 1600 AN workers whose jobs are at stake.
The outcome may well enable the government to legitimise its already stated intentions of privatisation, asset sales and closure.
National Rail could also be significantly affected. The broad terms of reference provide scope for sweeping recommendations, including the selling-off of NR. In addition, if NR was directed to meet its alleged financial obligations to AN, it could be placed in a difficult position.
AN is already under growing pressure as a result of both Labor's and the Coalition's policies of deregulation. The presence of private operators such as Specialised Container Services on the rail network is increasing, with TNT soon to start up its own service and a plethora of potential operators waiting in the wings.
Although such operations on the interstate network currently provide AN and state services with additional work (through contractual arrangements for crews and locos), many of these private operators intend to compete on the network in their own right, with their own equipment and crews.