J~ AUSTRI A A
PRIME MINISTER PRESS STATEMENT NO 482
4 April 1975
JOINT PRESS STATEMENT BY THE PRIME MINISTER, MR. WHITLAM
AND THE SOUTH AUSTRALIAN PREMIER, MR DUNSTAN
The Australian and South Australian Governments
have agreed on the terms for the transfer to the Australian
Government of the non-metropolitan rail systems of South
Australia. They have also agreed that South Australia will
now cease to be claimant State before the Grants Commission.
The announcements were made jointly today by the
Prime. Minister, Mr Whitlam, and the South Australian
Premier, Mr Dunstan. The agreements were concluded at discussions in
Sydney on Wednesday between Mr Whitlam, Mr D~ unstan, the
Australian Treasurer, Dr. Cairns, and the Australian
Minister for Transport, Mr Jones.
The Prime Minister and Premier emphasised that
all employees of the S. A. Railways will be employed in
either the'State on' Australian Railways service and that
the terms and conditions of employment would be no less
favourable than those presently applied.
The Australian Government will assume
responsibility for the financial operation of the country
and inter-State systems.
It will also assume the burden of the appropriate
portion of the railways deficit as from 1 July 1974.
The metropolitan rail system will remain
the property of South Australia and will be operated by the
State Transport Authority.
There will be a cash adjustment involving a
substantial payment to the Soueh Australian Government
this financial year, and an appropriate adjustment to
the level of financial assistance grants in future years. / 2
-2-
The agreement to transfer the South Australian
non-metropolitan railways resulted from the offer contained
in the Prime Minister's Policy Speech of November 1972
for the Australian Government to accept responsibility
for the railways of any State.
" This agreement is a most significant event
in the development of Australian railways and represents
the first major step towards the creation of a truly
national railway system," the Prime Minister and the Premier
said. " This agreement will benefit South-Australia and
Australian as a whole by enabling integration of Australian
National Railways and S. A. R. systems; encouraging greater
through-running of trains; fostering uniform purchasing and design
programs enabling the better utilisation of capital funds; and
removing unnecessary duplication between two of Australia's
major railways. The decision to transfer only the non-metropolitan
portion of the South Australian railways resulted from
the recognition of the need to coordinate all Adelaide's
urban transport modes under a single authority. However,
the major freight terminals, and key freight and country
lines inthe metropolitan area necessary for the efficient
operation of inter-State and country trains will be
transferred to the Australian Government. Where lines are
jointly used by urgan and non-urban trains these lines will
remain.. with the State but running rights will be granted
to non -urban trains.
CANBERRA, A. C. T.