IPART Submissions on CityRail Due
The NSW Government has asked IPART to review and recommend a new economic regulatory framework that will create better incentives for CityRail to provide passenger rail services at efficient cost levels. IPART has previously indicated that it is time to implement a more comprehensive and robust framework for regulating CityRail's fares. While undertaking this review of the regulatory framework, IPART is also to review CityRail's current fares and determine new fares to apply from the start of 2009.
As part of this review, IPART has released two discussion papers which are available on its website http://www.ipart.nsw.gov.au/.
The first discussion paper, "Determining CityRail's revenue requirement and how it should be funded" (82 page PDF) focuses on the total cost of providing CityRail services and how these costs should be funded between passengers and taxpayers.
The second discussion paper,"Deciding on the structure and level of CityRail's fares" (84 page PDF) focuses on how fares should be structured to encourage efficiency in the use of the CityRail network, equity between different users of CityRail services and promote efficient investment decisions.
The purpose of these discussion papers is to explain IPART's preliminary analysis and views on some of the key issues related to its approach to fare setting and the 2009 fare determination.
IPART seeks stakeholder comments on the discussion papers so IPART can take them into account in making its draft determination which is expected to be released in September 2008. The closing date for submissions is 18 July 2008. IPART will be holding a public roundtable discussion on 30 July 2008.
IPART has also released two consultant's reports. The report by L.E.K. Consulting (37 page PDF) provides advice on the efficient costs of providing CityRail's passenger rail services. The report by CRA International (108 page PDF) provides advice on the appropriate shares of CityRail's costs which should be funded by CityRail passengers (through fares) and by taxpayers (through government subsidies) taking into account the external benefits generated by these services. Both these consultant's report are available on IPART's website.
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EcoTransit Sydney urges individuals and organizations to study the discussion papers and make submissions to IPART before the closing date on 18 July 2008. A submission does not have to be all-encompassing. It can concentrate on just one or two issues. Remember to quote chapter and paragraph numbers.
The following documents are available on IPART's web site:
Media Release - IPART considers future CityRail regulatory framework and fares - 6 June 2008
Determining CityRail's revenue requirement and how it should be funded - Discussion Paper - 6 June 2008
Deciding on the structure and level of CityRail fares - Discussion Paper - 6 June 2008
CRA International Consultants Report - Value of CityRail externalities and optimal Government subsidy - 06 June 2008
L.E.K Consultant report - Cost Review of CityRail's regular passenger services - 06 June 2008
Final Report - CityRail Fare Elasticities - Booz & Co - June 2008