ABC 7.

30 REPORT RESPONSE TO QUESTIONS

Tuesday, 25 June 2013

Funding for Ulan Road upgrade

There's big expense in getting this road up to scratch - are you doing the bare minimum as the Mudgee Mayor says- or a bit more? The funding agreement was determined through a process supervised by the NSW Department of Planning & Infrastructure. All stakeholders participated in this process. An independent engineering report also informed the discussions. The report points out that the road was below Austroad standards prior to the assessment even though, over the years, MWRC has received funds from the RMS and all the mines. The funding model reflects our responsibilities, as well as councils responsibility for maintenance and upgrade of the road. The local government sector here say they just can't afford this road - and that you guys are the ones wearing the road down and also have deep pockets - whats wrong with that logic? We accept without question the need to make a fair and reasonable contribution to the Ulan Rd upgrade, and we have agreed to contribute $20.1million to the $33million upgrade cost. But as ratepayers, like the 3000 people we employ, we also expect council to invest in the development and maintenance of infrastructure. We would also point out that Ulan Rd is a major connecting road between the Hunter region and Mudgee. Not all traffic on this road is mine-related. Do you acknowledge that the council is impoverished - or are they lying when they say services will have to be cut to uphold their end? We understand the financial pressures that all local councils are facing. In fact, we have contributed more than $20million in infrastructure payments to MidWestern Council over the past five years, over and above the $3million we pay each year in rates. We are members of this community and we are constantly investing in partnerships and programs that can help improve services and facilities.

Should the State Government be doing more to invest in this road? Could that be a dealbreaker? We are prepared to support councils approach to State and Federal Governments for assistance with Ulan Rd funding, if were asked to do so. Residents say they've never seen the roads so degraded since the mining boom in the area, some residents who live off the road are complaining about the degradation of their driveways from wide coal trucks using them too much. Will you pay for that upkeep? Do you acknowledge that the narrow roads and the wide load coal trucks are putting normal cars at risk for accidents? We have accepted the funding model determined by an independent process that has taken all factors into consideration. We believe the reason for the narrow road is that MWRC has failed to regularly maintain the road to the required standard (as per 1 st question). However, the majority of B-doubles and large transport vehicles using this road access are not from the mines. The road is predominantly used by mines for light vehicle access. Mines rarely transport heavy equipment along this route. If and when heavy vehicles use this road, be it required for mines, farming or council, all traffic and transport legal standards and requirements are maintained: wide loads are escorted and travel to the required speed. We continually remind our employees and suppliers of the need to observe road rules and regulations and to honour their responsibilities as members of the local community. And as members of the local community, they understand the need to drive responsibly. One solution on wear-and-tear might be to slow the speed of the trucks down - are you open to suggestions like that? We continually remind our employees and suppliers of the need to observe road rules and regulations. If the speed limit on Ulan Rd was to change, we would reinforce with our people the need to observe the new rules. Media enquiries Michelle Barisic, Peabody Energy: (07) 3333 5670 / 0402 476 543 Allyn Hamonet, GlencoreXstrata: 4925 6431 / 0418 228 075 Brett Lavaring, Moolarben Coal: 4925 5107 / 0448 262 939