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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2023-05-18 Daily Xml
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Rail Safety National Law (South Australia) (Fees) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 4 May 2023.)

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (15:38): I rise as the speaker for the opposition on this bill. In 2011, the Council of Australian Governments agreed that the national regulators for rail safety, heavy vehicles and commercial vessel safety would move to full cost recovery from each of these sectors. Since then, the Office of the National Rail Safety Regulator has consulted widely with industry to create a new fee schedule, one based on cost recovery, with six tiers aligned with individual rail operations risk factors.

Rail operators will be allocated a tier number, tier 1 being the highest risk and tier 6 being at the other end, and their fees will be scaled accordingly. There is a significant change from the flat $15,000 annual fee and variable additional fee based on track kilometres. Application fees for new rail operations will sit outside this six-tier structure.

Additionally, we appreciate the exemption of three types of railway operations that will not be included in the six-tier risk profile cost-recovery model, and will have their own costing arrangements, the first being railway operations carried out by the tourist and heritage sector. These have a fixed annual fee of $2,000. This bill, we understand, removes the requirements for such operators to pay additional annual accreditation and registration fees as, for many tour and heritage operators, fees are generally paid for by the government anyhow.

Another railway operation exempt from the six-tier model are those undertaken on low-speed sections of railway tracks running off the main lines, known as private sidings. These can be utilised for unloading, reloading or storing carriages and train vehicles. The new definition of 'private siding' will include rail infrastructure managers of some privately operated freight terminals. These require less regulatory oversight and therefore attract a lower fee of $5,500.

The final type of railway operation exempt is defined as, and I quote, 'less complicated railway operations'. It sounds like a catch-all, but our understanding is that the eligibility criteria will be set out in the amended national regulations. The new fee for operations falling in this description will pay an annual registration fee of $20,000—higher than the current average paid in accreditation but still much lower than if they were included in the new six-tier model.

The rail industry employs over 165,000 Australians nationally. It contributes over $30 billion to the Australian economy and demands for rail services in Australia increase by about 2 per cent annually. It is important we have a financially sustainable rail industry into the future. The opposition supports this bill, which has been led by industry consultation and recommendation.

The Hon. R.B. MARTIN (15:41): I am pleased to rise in support of the Rail Safety National Law (South Australia) (Fees) Amendment Bill 2023. This bill proposes a new methodology for calculating the annual fees payable by a rail operator. Currently, an accredited operator is required to pay a fixed annual fee of $15,000, as well as a variable annual fee that is based on track kilometres managed, travelled or, in fact, both.

Under the new model, an accredited operator will pay an annual fee that is based on the operator's risk profile and the regulatory effort required by the regulator to oversee the rail operator. A tool has been developed by the regulator in consultation with the industry to determine the risk profile of an operator. This risk metric takes into account inherent risk, management, control, safety and performance. Once operators have been assigned a risk profile, they are then ranked and placed in one of six categories, spanning from highest risk to lowest risk.

Those rail operators in tier 1, which are determined to have the highest inherent risk, will pay the highest annual fee. The rail operators in tier 6, which have the lowest risk, will pay the lowest fees. Importantly, rail operators that do not agree with a determination made by the regulator about where they sit within the six-tier scheme have a right of appeal.

This bill also creates a separate fee scheme for railways operated by the tourism and heritage sector. Currently, heritage and tourism railways are charged a reduced annual fixed fee of $2,000 as well as the variable usage charge. However, the fees paid by these operators cover very little of the cost of the regulatory effort the sector attracts.

In order to remedy this, the responsible ministers have agreed to fund a total of $4.9 million per annum towards the cost of regulating the tourism and heritage sector. As a result of this decision, this bill will remove the requirement for tourism operators to pay annual accreditation or registration fees. The removal of the fixed fee and usage charge will contribute significantly to the sustainability and viability of the heritage and tourism rail industries, which play a particularly important role in South Australia.

Other categories of rail operations that will attract an overall reduced level of fees and charges are less complex rail operations and private sidings. This bill represents a fair and reasonable approach to our important rail network. In particular, the fee structure proposed by this bill is an equitable and transparent method for ensuring that the operators that have the highest risk and pose the highest burden pay the most. This will also ensure the continued sustainability of Australia's rail networks.

I would also like to speak briefly on the improvements this bill will deliver to our important heritage and tourism rail industries. Heritage railways hold a special place in the heart of all South Australians. So many of us in this chamber would have childhood memories of a ride on the Cockle Train or the Pichi Richi Railway.

The viability and sustainability of our heritage railways is something that is particularly important to this government. To bolster the central position of these railways and to ensure that the next generation of South Australians can continue to enjoy the unique experiences these train journeys have to offer, the Malinauskas government recently committed $8.9 million for remediation works to the SteamRanger.

This state heritage listed tourism attraction provides 70,000 passenger journeys each year, running between Mount Barker to Victor Harbor, and includes the popular Cockle Train. The SteamRanger is run by a dedicated team of volunteers who maintain the trains and passenger service. It has contributed $18.5 million of economic activity to the regional economy over a five-year period. The SteamRanger and other historic railways represent an iconic and unique South Australian experience and I am proud to be part of a government that is preserving them for the future.

In wrapping up, in many respects this bill reflects the platform that Labor took to the 2022 election. It is a bill that is aimed at delivering efficiency and fairness without increasing the financial burden on industry or the individual. It is about working together to reach outcomes that benefit both industry and the individual. I commend the bill.

The Hon. R.A. SIMMS (15:45): I rise to indicate the Greens' support for the Rail Safety National Law (South Australia) (Fees) Amendment Bill. The Greens believe that high-quality national freight and passenger rail is essential to our modern economy and our society. Many in this place know of my ongoing interest in rail as a mode of transport, particularly in regional areas. Rail transport is accessible, it is low emission and safe.

This bill establishes a new cost-recovery method to fund the Office of the National Rail Safety Regulator. This model will align accreditation fees with the risk profile and regulatory effort expended by the regulator. These provisions will create a more equitable fee structure for rail operators. Furthermore, heritage and tourist rail operators will be exempt from accreditation and registration fees.

Currently, these operators are charged an annual fee of $2,000, which is sometimes covered by the government as a community service and usually only covers less than 5 per cent of regulating the sector. There are a number of these heritage and tourism operators in South Australia, including the mostly volunteer-run Pichi Richi Railway and the SteamRanger.

I actually went on the Pichi Richi Railway many times as a kid and I was surprised to know that they were paying a fee. These organisations are preserving the heritage of our rail networks and it is welcome news that they will now be exempt from these fees. The Greens support these changes, which will create a model with equitable fees as agreed by the Council of Australian Governments and the transport ministers. The introduction of a more proportionate fee structure to fund the Office of the National Safety Regulator is a positive step forward.

I want to use this opportunity to urge the government to look seriously at rail, particularly rail in the regions. As you would know, Acting President, I was chair of the parliamentary inquiry into public and active transport. I have not yet had an opportunity to meet with the transport minister. He has not responded to any of my requests to meet. I would welcome the opportunity to talk to him about the myriad issues in the transport portfolio, particularly relating to rail.

This bill plays an important role in addressing one issue but there are a whole heap of other issues that could be addressed. Of course, the Hon. Connie Bonaros asked questions today about the end of Rex in some of the regions. There are regional communities that are at risk of being cut off and they really rely on rail as a way of connecting them with the broader South Australian community. I urge the government to dust off that report and to meet with me so that we can discuss what might be done.

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:48): I would like to thank the Hon. Nicola Centofanti, the Hon. Reggie Martin and the Hon. Robert Simms for their contribution on this. As has been mentioned, the aim of this bill is to allow the Office of the National Rail Safety Regulator to be funded by way of a new cost-recovery model. The proposals have been consulted widely with industry on the new cost-recovery model and the associated changes. There is an expectation that these will be introduced and operate from 1 July this year. I therefore seek the support of members for this bill.

Bill read a second time.

Committee Stage

Bill taken through committee without amendment.

Third Reading

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:51): I move:

That this bill be now read a third time.

Bill read a third time and passed.

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