Towards efficient transport

This report examines ways in which Australian transport can be made more efficient. It looks systematically at Australia's road, rail, national and international air and sea transport, and the benefits which improved efficiency would bring. Much of Australia's transport inefficiency - and resulting waste and loss for the whole community - is not merely avoidable, but could be ended simply by the abandonment of restrictive regulations and by ending the protection special interest groups have enjoyed. With regard to land transport, the following conclusions are drawn: prices charged for the various modes do not at present reflect the real resource cost of providing transport services. Differences in levels of cost recovery across the modes appear to have distorted the pattern of resource allocation. Past attempts to correct such distortions have been less than successful. Whilst there are very real problems in measuring costs and setting prices, the potential gains from efficient resource allocation suggest that the attempt is worthwhile. The inter-state commission would appear to be the obvious body to study the problem. Pricing practices call for special attention. Railway pricing policies need to be reviewed. The railway systems must be encouraged to identify incremental or avoidable cost. Research must be directed towards finding an acceptable charge related to wear and tear on road surfaces. Expenditure on road systems should reflect road usage. On balance, less should be spent on rural roads, more on urban and arterial roads. There is a case for free up commonwealth road funding to allow states to determine their own priorities.