EXPERTS RECOMMEND A NEW FUTURE FOR 3801

Media Release from Minister for Transport John Watkins Monday
27 November 2006

EXPERTS RECOMMEND A NEW FUTURE FOR 3801

As the 3801 steams its way to Maitland tonight for
assessment ahead of a $500,000 engine upgrade, heritage experts have
recommended the merger of the two rival volunteer rail groups vying to operate
the historic locomotive.

Mr Watkins said a panel of independent rail heritage experts
believed a merger would ensure the financial viability of both groups and the
continued operation of the 3801.

Deputy Premier and Minister for Transport John Watkins today
accepted the final report of a panel of experts set up to advise on future
management options for the locomotive.

The taskforce comprised former Queensland Rail Chief
Executive Officer, Vince O’Rourke, and representatives of the Chairman of
Tourism Australia,
Mr Tim Fischer and the Chief Executive Officer of the Australian Railway
Association, Mr Bryan Nye.

“The report found that on their own, neither 3801 Ltd or the
Rail Transport Museum,
despite their enthusiasm and volunteer base, had the financial or business
capabilities to guarantee the future upkeep and use of the 3801,” Mr Watkins
said.

“The Government believes the only way forward is for the
rival groups to merge their heritage efforts and work with the Powerhouse Museum and RailCorp’s Office of Rail
Heritage,” he said.

“After an extensive analysis of the groups’ operations and
finances going back five years, the report concludes collaboration between the
rival groups is the best way to ensure their financial viability.

“Mr O’Rourke’s report makes it clear that this type of
collaborative and commercial approach is needed to build long term
sustainability in the rail heritage industry.

“The Iemma Government is absolutely committed to ensuring
the 3801 locomotive stays in good working order so it can keep up its busy
schedule of public engagements across NSW.

“The 3801 has a secure future. It belongs to the people of
NSW, and the Government will do everything in its power to ensure the thousands
of men, women and children who love it can continue to ride it and experience
the steam age.

“But the Government has done all it can to mediate a truce
between 3801 Ltd and the Rail
Transport Museum.
It’s now up to them – if they’re really committed to the locomotive, they’ll
work together.”

Mr O’Rourke’s final report identifies a number of emerging
challenges faced by the two rival groups that require attention.

These include the need for sustainable heritage strategies
that not only cover Government-owned rolling stock and equipment, but that also
take into account those controlled by other groups, such as the 3801.

The issues identified include:

  • The
    need to adopt safety systems to comply with new national accreditation
    standards;
  • A
    better approach to tourism and marketing across the sector; and
  • The
    need to attract, train and keep volunteers with the relevant skills and
    experience.

Mr Watkins said, meanwhile, preparations were underway to
get the 3801 to Maitland this week as part of the $500,000 overhaul of its
boiler.

“It will be crewed by members of both organisations, which
as I have said before – shows how a collaborative approach to the management of
the loco can be achieved.”

The Panel’s Terms of Reference agreed at its first meeting
were:

  • Assess
    the sustainability of 3801 Ltd and the Rail Transport Museum by reviewing
    their businesses, operating and asset management plans as well as
    financial forecasts, including a review of their finances going back five
    years;
  • Identify
    options for improved collaboration between 3801 Ltd and the RTM in view of
    the above considerations; and
  • Provide
    advice that would ensure a sustainable operating plan for the locomotive.

The locomotive was leased by 3801 Ltd from the RTM. This
lease expired on Sunday (26 November). The Crown Solicitor has twice advised
RailCorp that at the conclusion of the lease, under the previous legal
agreement, the locomotive reverts to the custody of the RTM.