Overland Train Service

The Hon. C.M. SCRIVEN (14:24): My question is to the Minister for Trade, Tourism and Investment. Will the minister advise the chamber what negative impact the Marshall Liberal government's decision to cut funding for the Overland train service will have on regional tourism, and how many job losses will occur as a result of withdrawal of this funding?

The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment) (14:25): I thank the member for her ongoing interest in regional rail. Of course, as we would be aware, in today's paper it has been announced that we have cut funding to the Overland. The Overland is a passenger train service that operates between Adelaide and Melbourne. Great Southern Rail, now part of the Journey Beyond group, acquired the Overland rail business from the Australian government as part of the Australian national divestment in 1997. GSR also operates the Ghan between Adelaide and Darwin and the Indian Pacific between Sydney and Perth via Adelaide.

Within South Australia, the Overland stops at Adelaide, of course, Murray Bridge and Bordertown. Based on data from 1 January to 31 July 2018 provided by GSR, there were 621 passengers disembarking and embarking in regional South Australia, and I think 10,000 passengers disembarking and embarking at the Adelaide Parklands Terminal. The current three-year funding arrangement with GSR provides an operating subsidy of $1,050,000 over the period, conditional on GSR continuing to provide two return trips per week of the Overland service. The current arrangement and agreement expires on 31 December 2018.

The Victorian government also has a funding agreement with GSR, which operates in parallel, providing $10,405,000 over the same period, broken up between a ticket concession subsidy and an operating subsidy. While GSR has proposed a three-year extension to the agreement, they have accepted a 15-month extension to the funding agreement from Victoria.

In challenging fiscal times, the South Australian government needs to carefully prioritise its funding to maximise the benefits for all South Australians. Due to the relatively low passenger levels for the service, particularly within regional South Australia, and the availability of other transport options for these communities—coach and air—South Australia will not be extending the further funding agreement expiring on 31 December 2018.

Great Southern Rail made a statement yesterday confirming the government's decision on the basis of relatively low passenger levels for the service and availability of alternative transport options for regional communities. They have stated their intention to advise regular patrons of what is happening with the service so they can make informed travel decisions in the future. Great Southern Rail has stated that it has started to explore opportunities available to provide a short-term transitional travel phase beyond December 2018.

As members would know, the Overland goes from Melbourne to Adelaide. I would just like to give a little context. These people opposite think that they are the first ones. I recall in business—and the reason I raise this, this morning on radio I heard the member for West Torrens, the shadow minister for whatever he is—I can't recall exactly—talking about how this was going to damage trade and tourism, I think probably to try to drag me into the conversation.

Forty-two years ago, before the Hon. Emily Bourke was born—sadly, Tung was already born, and I am not sure how old the Hon. Mr Hanson is, but certainly before the Hon. Emily Bourke was born—I took my first load of flowers to put on a train to go to Melbourne from Adelaide. It was to meet the Overland every night of the week in Serviceton or Wolsley because it was cheaper at this side of the border—

The Hon. C.M. SCRIVEN: Point of order, Mr President.

The PRESIDENT: I understand. I am going to give him a warning in a minute, if he keeps straying.

The Hon. C.M. SCRIVEN: The question was about job losses.

The PRESIDENT: I know.

The Hon. D.W. RIDGWAY: What I am trying to explain is this was a service, a parcel delivery service and a passenger service, that over the years has diminished and diminished and got less and less. We have got on with the business of growing our economy in regional South Australia and regional Victoria ever since it has diminished. As a government we have made the decision that, in these challenging fiscal times, we think the subsidy of $300,000 can be better invested to support regional jobs and regional tourism growth across all parts of South Australia.