What if the NSW government set up a new state-owned business corporation and handed it sweeping powers that duplicated those of several established authorities, including the power to prepare strategic plans, buy, develop and sell land, run other businesses (including bus services) and, incidentally, manage a railway system?
Well, this isn’t a hypothetical question, as the government has just pushed the Transport Administration Amendment (Sydney Metro) Bill 2018 through parliament. The legislation, which passed yesterday with little fanfare, amends the Transport Administration Act 1988 to constitute the Sydney Metro as a corporation. It also creates the Sydney Metro Board to run the new entity, which can undertake all the activities outlined above.
Why has the government done this? Setting up a government-owned corporation to oversee the development and operation of a privately-operated metro is not so surprising for a Coalition Government, but why give this new body a range of powers that goes well beyond ensuring the metro trains run on time?
Not surprisingly the opposition thinks it has the answer – the metro is being “fattened” for privatisation, a claim the government strenuously denies. However, the government may have another agenda for the Metro, one which may prove to be even more controversial.
Sydney Metro: open for business
The legislation starts with a clear commercial focus. The “orderly and efficient development of land” near metro stations, depots and stabling yards is given equal top billing as a key objective alongside the delivery of “safe and reliable metro passenger services”.